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Volvo S60 Lease Questions

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Comments

  • qbrozenqbrozen Posts: 16,887
    oh hell. if you have to pay tax on TOP of that price, yeah, forget it. No profit there at all. (i was thinking your number was with tax)

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

  • Does this lease quote sound like a Good/Avg./Bad deal?

    2007 s60 R - Everything except Navigation
    MSRP - 44560.00
    Negotiated Price - 32400.00
    residual value - 19176.00
    MF .00225
    1500.00 total due at signing
    486.00 per month fir 39 months

    This is supposedly on the x-Plan with Wells Fargo as the lender.

    Sound like a good deal?
  • m.lm.l Posts: 3
    How is this deal on a 36 month, 12k/year lease in Southern California?

    2007 t5 s60 with metallic paint, premium package, auto transmission, bi xenon headlights, satellite radio prep:

    msrp 38450
    cap cost 27,842
    mf .00202
    residual 43%
    437.08/month including tax
    1,000 drive off (including 1st mo, title, bank fee)
  • lease1lease1 Posts: 2
    Car Man

    Dealer has offered the following terms on a 2007 demo, (4800 miles)with premium package, metallic paint:

    36 months, 15k miles per year.
    $600.00 out of pocket, which include first months payment
    $339 per month plus tax.

    Seems like a good deal, can you please confirm.
  • hts666hts666 Posts: 8
    How does this sound for a 39 month/12k year lease deal for Los Angeles.

    2007 S60R, metallic paint, premium package, auto transmission, 18" wheels.

    MSRP: $44,895,
    Quoted price: $37775
    Lease price I was quoted was 429(+tax) with a 2k down payment.

    I got similar numbers ($435/month) from another dealer in the area.

    Does this sound about right, or can I do better?

    Thank you.
  • rrm1020rrm1020 Posts: 1
    Im coming out early off a 2005 BMW 3Series lease, I put way too many miles.
    In order for me to get out of the lease as I am "flipped" ill get into a Volvo Lease with the idea of buying at the end of the lease. This hiccup is the price Im paying for leasing and adding tons of miles.

    2007 Volvo S60 2.5T black saphire w/taupe interior
    Lease price $26,200 (34,200 less $8,000 dealer cash)
    Add payments and over mileage of $5,100 (final amount determined at delivery date)
    Payments factored on $31,300
    MSRP $35,820
    15,000 MILES YEAR
    48 MONTHS @ $499/MO
    TOTAL OUT OF POCKET $2500.00

    What are your thoughts?? Help please!
  • upperc1upperc1 Posts: 7
    Is 15,000 miles enough for you? You might want to see if you can get the same payment on a 36-39 month lease. What is the "over-mileage" charges. Volvo is offering some serious money to dealers if they use "outside" banks to do the lease on the S60. It seems that your dealer is taking off $1500 on his end
    Find out what your buyout is on the lease from your leasing company. Maybe CarMax will offer more and you will be less "upside down" and go into your new lease without working the old lease in the deal. Just a thought
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi fishymick. X-Plan deals usually are very good. The car that you described, a well equipped 2007 Volvo S60 R has a spread of around $2,800 between its full MSRP and its dealer invoice price. I see that you are leasing it through Wells Fargo instead of Volvo Finance. I believe that Volvo is currently providing a whopping $7,000 cash incentive for leases of the '07 S60 R through independent banks. Plus there is $2,000 lease cash and $1,000 owner loyalty or conquest cash on this car right now. Combine these three cash incentives with the spread between this car's MSRP and invoice price and you have a total of around $12,800 to play with. This explains how you were given such a large discount (over $12,000). The price that you were given on this car looks pretty good to me. If you like it, I personally don't see any reason not to go for it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi m.l. The money factor that you mentioned is different than Volvo Finance's current buy rate for this car. I suspect that your lease is being run through an independent bank rather than through Volvo Finance. Volvo is currently providing a $6,000 cash incentive on leases of the 2007 S60 T5 through independent banks plus $2,000 lease cash, plus $1,000 owner loyalty or conquest cash for a total of $9,000 in cash incentives on this car. Plus the car that you described probably has a spread of around $2,400 between its full MSRP and its dealer invoice price. This gives you a total of $11,400 or so to play with in your negotiations. You were quoted a discount of $10,608 on this car. You might be able to shave another couple hundred dollars off of this car's price if you work at it, but this price isn't bad.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello lease1. 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 on this deal if you let me know what these numbers are.

    The problem that I personally have with demo vehicles is that dealers never seem to be willing to provide enough of a discount for me to justify purchasing what essentially is a low mileage used vehicle over an otherwise identical brand new one. Of course, there are exceptions to this, but this generally seems to be the case with demos.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Greetings hts666. The car that you described, a well equipped 2007 Volvo S60 R has a spread of around $2,800 between its full MSRP and its dealer invoice price. Given the size of the discount that you were quoted, I suspect that you are leasing this car through an independent bank rather than through Volvo Finance. Volvo is currently providing a whopping $7,000 cash incentive for leases of the '07 S60 R through independent banks. Plus there is $2,000 lease cash and $1,000 owner loyalty or conquest cash on this car right now. Combine these three cash incentives with the spread between this car's MSRP and invoice price and you have a total of around $12,800 to play with. You are being given a discount of $7,100. If this lease is not through Volvo Finance, you should be able to negotiate a lower selling price than this. If your lease is being run through Volvo Finance, this is a great price.

    Car_man
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  • Hello,

    I have a pending deal on a 2007 S60, with the Premium and Climate packages. Terms are:
    39 months, 15,000 miles per year, $2800 total cash down (includes registration fee, taxes, first month's payment, etc.), and $342 per month.

    The bank is Wells Fargo, and the cost of the vehicle (cap cost?) is $24,300... from an original sticker of 35,800. I am scratching my head at how they got the cap cap cost so low. Never owned a Volvo before, hope to be pleased.

    Can anyone give me an opinion on whether or not this is a good deal, it seems like it to me.

    Thanks,
    Mike
  • Good afternoon!

    Just got back from Volvo of Princeton and made arrangements to lease a 2007 S60 2.5T.

    Mike - I had a pretty similar experience price wise...

    I'm still amazed at the discounts on Volvos - went in with interest in a S40, but the price difference was something like $15/month - WELL worth the upgrade from the S40 to S60.

    I'll pick up the car on Monday, April 2nd.

    My details:
    36 month lease through US Bank for 18k/year
    New 2007 S60 2.5T
    Titanium Grey w/ Graphite interior
    Premium, Climate, Satellite Radio Prep
    MSRP - $35,820
    Cap cost - 24,106 (!!!)
    Residual - 41% (due to high miles)
    Money factor - 0.00207 (or ~4.9%)
    Down payment/money out of pocket - $1,648 (include acq fee, 1st month, NJ add-on fees (not state tax) etc.)
    Works out to $408/month
    I think that's terrific!

    Steve
  • amorenoamoreno Posts: 4
    Hey guys. I appreciate reading all of the posts in this excellent edmunds.com forum. Car_Man (or other friends), can you tell me if this deal makes sense to you guys?

    I called a volvo dealership in texas trying to get the residual and money factor numbers on a 36K/36Month lease on a basic volvo s60. Here's what they told me:

    Residual-48%
    Money factor-.01 (did they mean .001?) I asked and they told me ".01 is what our computer says." if i'm correct, that's a whopping 24% interest rate. am i safe assumimg they meant .001? or do you guys have the official money factor rate for volvo financing.

    they're offering me a basic s60 for $26,080. the sales manager told me that the monthly payment would be $364. i told him i don't want to put any money down and he said it was fine. the total costs would be: $365 first payment, $108 fees, $375 security deposit, and then a $80 fee (for something i do not know). did he forget taxes? as i am in texas.

    to summarize: can i get a better cap price? and what is the money factor and residual?

    your help would be much appreciated!

    andy
  • mellow2mellow2 Posts: 1
    We are currently leasing a s40 2.4i 2004, original lease package was 48 months, 15k mi. Currently at 32 months with 36k miles. We want to trade up to a s60 2.5t, 2007, with premium and sports package, sticker price is $38k, price on lease offered is $30k. Was offered $15k for the trade in value of car (s40). Dealer offered lease package $479/mo. (through us bank) with tax, 48 mos., 12k, $1k down (first payment, tax, tags included). Reading through the forum it doesn't seem to be a good deal. Any advice? (our credit is perfect).
  • qbrozenqbrozen Posts: 16,887
    reading through the forum doesn't help you much because you have so much negative equity that you are rolling into the new car. Getting out of a lease early on a steeply depreciating car is never cheap.

    There are typically 2 choices when trading in the car, either all of the remaining payments are rolled in to the next car OR the difference between trade-in value and current buyout. If you were offered $15k on the S40 ... I'm taking a wild guess and saying you are probably rolling ~$4k negative equity??? On a 4-year lease, that is probably bumping your payment up by at least $80. Probably more like $90. So if it wasn't for that negative, the deal would be under $400/mo.

    Still doesn't seem great for a 4-year lease, though. Personally, I'm really opposed to leasing past 3 years.

    By the way, you've driven the current car 36k miles in 32 months. So it seems a 12k/yr lease is not enough for you.

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

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello Mike. Volvo is currently providing enormous cash incentives on leases of the '07 S60 through independent banks like Wells Fargo. The exact amount of cash that is available through this program ranges from $6,000 to $8,000, depending upon the trim level of the vehicle that you want. In addition to the cash for leases through independent banks, Volvo is providing $2,000 cash on leases of this car through any source. That puts the total cash on leases of the S60 at $8,000 to $10,000! That's how the dealer you are working with was able to give you such a large discount on this car. I don't know exactly which S60 you are getting, but the selling price that you were quoted looks very attractive to me.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Andy. You're right, there's no way that this car's money factor is .01000. Volvo Finance's current buy rate lease money factor for a completely stripped version of the '07 S60 2.5T is actually .00001. This is the lowest possible money factor for a lease. In addition to this attractive month factor, Volvo is providing a $2,000 cash incentive on leases of this car that will help you to negotiate an attractive capitalized cost. If you provide me with the MSRP of this car I would be happy to give you my opinion on the selling price that you were quoted.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi mellow2. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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  • spiderdanspiderdan Posts: 10
    I'm currently in negotiations with a local dealer in Cleveland, OH for an S60 2.5T w/Premium package, climate, and metallic paint. Here are the details:

    - MSRP: $35,725
    - Due at delivery: $694 (first payment, doc, title, taxes)
    - Cap cost: $25,425
    - Ohio taxes added upfront (to be worked into monthly payments): $1,025
    - Residual value: $12,488
    - Money factor: .00191
    - Term: 48 months
    - Monthly payment (includes tax): $391.00

    Using the online lease calculator at LeaseGuide.com, the monthly payment should be $365.25. And at 36 months, the payment should be $326.16 (the dealer quoted my $419.00). Is the dealer hiding some profit in the numbers they presented me?

    Also, are the attractive lease rates that people were getting back in August ($299 for 36 months on 07 S60's) not obtainable anymore? By chance, could these appear again this summer (for 2008 models)?

    Thanks,
    Dan
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