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Volvo S60 Lease Questions

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  • volvomaxvolvomax Posts: 5,274
    How the sales tax is paid is up to the state.
    Most states have the sales tax as a percentage of the lease payment. A couple of states, Illinois for example, make you pay the full sales tax up front.
    If you buy out the lease, you pay the sales tax on the buyout amount.
  • How the sales tax is paid is up to the state.

    This is true, but...

    In states where the tax is paid upfront, you can either pay it in a lump sum, or the finance company will pay it, and then add it into your cap cost.. In effect, you will be paying it over the term of the lease (with a little interest included).

    I agree.. it is better to roll it into the lease, for just the reasons you described.. If the car is totaled early in the lease, GAP insurance pays off the finance company.. If you had paid that tax out of your pocket, there would likely be no refund of that portion.

    I do the same thing with any substantial upfront cost (like the acq.fee). I always roll it into the payment.

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • tonyg9tonyg9 Posts: 9
    Thanks for the reassurance Car_Man, I was not :) sure about the deal.
  • paul68paul68 Posts: 1
    Looking to lease this car and unfortunately, missed the great specials last month...

    I have been shopping prices at numerous NY, NJ dealers and here is what seems to be the best deal so far. I would love your opinion:

    S60 with climate and premium packages
    $339.44 with $2232.23 due at signing.
    The MSRP is $35820 with a residual of $15834.75.
    no cap cost

    thanks for the help!

    also, if anyone has any suggestions on which the best dealers are in NJ and NY to get the best deals...i would love some feedback.
    thanks!
  • tws2tws2 Posts: 1
    To all,

    Please weigh-in on your thoughts as to the attractiveness of the following lease special as per the link. I am interested in the S60 with the following details:

    1. Instead of the 4 yr. lease as advertised I have opted for the 3 year
    2. $1,330 will be due at time of signing (inclusive of the first payment).
    3. The residual at the end of 3 years is approximately $15,500 (Seems low)
    4. Instead of paying the taxes up front, I have opted to roll them in to the payments
    5. The monthly payments will be $403.00

    The link for the ad is here:
    http://www.liag.net/ads/SevenWays.html
  • What you have heard is correct, carforevan. If you can roll sales tax onto your car's lease payment it is a good idea to do so. By doing so, not only do you eliminate the risk of losing it if your vehicle is totaled in an accident or stolen but you also are also often able to take advantage of the low interest rates that are available on supported leases. It's a good idea to keep the money that you would have laid out for sales tax in the bank or in a CD collecting interest if you only have to pay 1% or 2% interest on it when you roll it into your lease. Rolling sales tax into your lease payment doesn't get you out of paying tax on your vehicle, the bank that you are leasing your vehicle through is just paying it for you at signing and you are financing it in your lease. You should be able to roll your car's acquisition fee into its cap cost as well.

    Car_man
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  • You're very welcome, tonyg9.

    Car_man
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  • Hi there paul68. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what its selling price is.

    Car_man
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  • Hi tws2. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • Hi all - what do you think of this deal offered to me by a Southern California dealership:

    2007 S60 2.5T, Premium package, metallic paint, sat prep, Sirius satellite radio receiver installed (priced at $300, rolled into lease, can be removed by me at end of lease term)

    36 months, 12k/year

    MSRP: $35,140
    Sell price: $27,625.44

    $0 drive off (includes 1st month)
    $398.20 + tax = $429.15 x 35 monthly payments

    End-of-lease disposition fee: $395
    Acquisition fee: $895

    Feedback appreciated! Thanks.
  • I was recently at a Volvo Dealership in St. Louis MO. My current lease is ending in 2 months. I wanted the figures on a new lease on a 2007 S60 before I decide if I will keep my 2003 S60.
    This sales man quoted me a lease price of $480 with $2250 down payment 48 mo lease. MRSP is $36,813. He would not give me the invoice, said there were no rebates or incentives. He also said they don't lease 2006 S60s anymore because the 2007s are out. From reading this board, I don't believe that to be the case.
    I told him I had read on Edmonds.com that there were approximately $9000 in incentives. He said I should not believe everything I read. I am a woman, but I do do my research. Two minutes after I left the lot, he calls...opps!! The computer made a mistake, and there are incentives, a whopping $9000 worth. OK, he is now taking $9000 off the car, lease comes in at $430 now. The ad in the paper starts the lease out at $279 - $319. His figues still seem high to me. I just didn't expect this kind of treatment at Volvo. When I leased my first Volvo, it was more like, here are the incentives, price...take it or leave it. Now it's more like I'm going to take you for this ride if you let me. If I do decide to deal, it won't be with this salesman. I've contacted the other Volvo dealer who said he will beat this dealers price, that won't be hard.
    My question, what are the available incentives on the S60, both 2006 and 2007. Also, are there any incentives for customer loyalty, even if you are leasing.
    This guy said the price of the vehicles is not important, just the payment. He's a crook if you ask me.
  • qbrozenqbrozen Posts: 16,893
    This guy said the price of the vehicles is not important, just the payment.

    Well, I personally believe the payment is the most important part when leasing. Leasing is renting, so the cheaper I can rent it for, the better. HOWEVER, since the price obviously influences the payment, it IS important. And you obviously want to know that they are taking $9k into account.

    As far as this deal ... dropping only $50 a month for $9k difference in price seems way off base. Did he still want $2250 down? And was it still a 48-month lease?

    Well, all you really need to get from him is the money factor and residual he is using. With those numbers, you should be able to calculate what your lease payment should be (since you can figure out selling price on your own, whether the dealer likes it or not, the info is available right here on edmunds).

    All in all, it sounds like this salesperson is giving you lousy lines and I wouldn't appreciate it if I were you, either. So I'd get my numbers together and move on to the next dealer (or the next salesperson at the same dealer, if you want).

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • I am looking at the 2007 S60R to lease. What are the latest and Best lease promotions through Volvo and other approved 3rd party lenders. Not sure if this matters but I am in TX.

    Here is what Volvo dealer told me:
    Volvo Financial:
    $3000 incentive
    Residual: 43-45%(48mo term) and 50%(42mon term)
    MF: 0.0043 (something to that effect.I know it was over 10% which is totally rediculous)
    +TTL
  • Hi Car_man,

    Can you analyze my deal for me:

    2007 Volvo S60 (base model)
    Leather/Sunroof
    lease factor .00212
    36 mos lease / 15k miles
    Residual -- 45%
    $2500 at signing (400 1st payment, 1300 cap cost reduction, 645 acquisition, 137 dealer fee)

    monthly payment $400

    Thanks alot!

    Brian
  • I left out my MSRP:

    $35,145

    Thanks again,

    Brian
  • Car man,

    what is your input?

    I am looking at the 2007 S60R to lease. What are the latest and Best lease promotions through Volvo and other approved 3rd party lenders. Not sure if this matters but I am in TX.

    Here is what Volvo dealer told me:
    Volvo Financial:
    MSRP is $47049
    $3000 incentive
    Residual: 43-45%(48mo term) and 50%(42mon term)
    MF: 0.0043 (something to that effect.I know it was over 10% which is totally rediculous)
  • Hi neednewcacar. I believe that the dealer invoice price of the car that you described is around $32,826. As you can see, the selling price that you were quoted is well below invoice. This leads me to believe that this lease is being run through a bank other than Volvo Finance. Volvo is providing special cash incentives on vehicles that are leased through independent banks. Specifically, 2007 Volvo S60 2.5T models that are leased through banks other than Volvo Finance are eligible for a $3,500 cash incentive. Even when this cash is taken into account, the selling price that you were quoted still looks very attractive. This looks like a very good deal to me.

    Car_man
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  • Hello raindrop3. I believe what you were told was correct. I don't think that Volvo is providing lease support on 2006 models any longer. It is just providing dealers with closeout cash on them to help them unload their remaining models. If you want to lease, you will be much better off going with an '07 S60.

    As far as this car's cash incentives go, Volvo is not currently providing cash incentives on leases of 2007 S60 models through Volvo Finance. It does have cash incentives for consumers who lease this car through independent banks though. Specifically, there is $3,500 on '07 S60 2.5T models and $4,500 on '07 S60 T5 models that are leased through any bank other than Volvo Finance. If you decide to lease through Volvo Finance, it has special lease money factors instead of this cash. Volvo has $5,000 in cash incentives on the '06 S60 this month.

    Car_man
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  • You are absolutely right, bornracer. The money factor that you were quoted for this car is absurd. Volvo Finance's current 48 month buy rate lease money factor for the 2007 S60 R is only .00080. If you decide to lease through an independent bank instead of Volvo Finance, this car is eligible for a $5,500 cash incentive. If I was quoted the deal that you mentioned, I personally would shop around with a different dealer.

    Car_man
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  • Hey Brian. According to the latest information that I have seen, Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Volvo S60 2.5T base model with 15,000 miles per year are .00108 and 48%, respectively. I would be happy to give you my opinion of this deal, but in order for me to do so I need you to provide me with this car's MSRP and selling price.

    Car_man
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