Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Volvo V50 Lease Questions

24

Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello Michael. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Let's take a look at the price that you were quoted for this car. A base 2007 Volvo V50 2WD has a spread of a little over $1,700 between its full MSRP and its dealer invoice price PLUS Volvo is providing a special $4,500 cash incentive on leases of this vehicle through independent banks. This gives you a total of at least $6,200 to play with (I believe that there are dealer cash and loyalty / conquest offers out there as well). You were quoted a discount of $7,200 on the V50 that you're interested in. The selling price that you were quoted looks very attractive to me. The lease program looks good, too. If you like this vehicle, I personally don't see any reason not to pull the trigger on this deal.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Quisito. At first glance, the monthly payment that you were quoted for the V50 that you are interested in looks good to me. I would be happy to give you a more detailed analysis of this deal if you let me know what this vehicle's full MSRP and selling price are. It is always a good idea to find out what the selling price of any vehicle that you are considering leasing is anyhow. Let me know and I'll tell you what I think.

    Car_man
    Host
    Prices Paid Forum
  • I've got two months to burn on my current lease. (payments are 315 per month)

    However, I'm interested in a V50 T5 AWD and the 5K cash incentives are looking really good.

    Had a dealer tell me on the phone this morning that even after the incentive period ends, the adjustment in MF and residuals will mitigate the difference between the current incentive period and what happens next. However, they also can't guarantee anything if I wait or order a car.

    So, my question is, should I lease now and eat my last two payments or order a car and be stuck with whatever Volvo offers after the current incentive pd. is over?

    Thanks,
    Kevin in MD
  • volvoscvolvosc Posts: 1
    I have the following offer on the table from the dealership and would like to know if this is a good deal and/or if there's further room to negotiate.

    2007 Volvo S50 2.4i
    Off-black T-Tec interior
    Select and Climate Package

    Original MSRP: 30,560.00
    Selling Price: 25,374.00
    Residual: 14,974.00 (49%)
    36 mth/15000 mile lease
    Customer Cash/Rebate: 700.00
    Inception Fees: 432.75
    Down Payment: 246.54
    Down Payment tax: 20.71
    Assignment Fee: 595.00

    So, considering the lease specials end today (though the dealership said he could also work the same deal Sunday because they can back-date), is it worth it? I'm not so sure I'll actually be driving it 15k/yr, but the difference for the extra 3k/yr was only about $8.00/mth, so why not...
  • dougm92dougm92 Posts: 1
    Hi

    Did any of these incentives carry over to April? Is there any purchase incentives?

    Thanks
  • stelzerstelzer Posts: 2
    Hello! Looking for the MF and RV on a 2007 V50 AWD T5 automatic in Colorado - Thanks!
  • stelzerstelzer Posts: 2
    Hello - have following offer on lease
    07 V50 T5 AWD
    Barrents Blue
    Premium Package
    Premiun Audio
    Climate Package
    Automatic Trans
    Incl Destination
    MSRP 36575
    Cap 29175
    RV 48%
    Money Factor .002
    Monthly payment - $415.00 + Tax
    Due @ signing 1st payment + Lease Aq fee
    36 mos / 12,000 miles

    Good deal?
  • I know this is a leasing forum, but it seems to be the most active of the V50 forums, so thought I'd try here ...

    I'm considering a T5 or T5 AWD, and can't find any info about current dealer incentives. Any info appreciated !
  • volvobuffvolvobuff Posts: 35
    The incentives listed by Car_man in message #20 above on March 1 were increased $500 by Volvo in April and another $500 in May. The current third-party (i.e. non-Volvo) lease subvention is $5,500 for a V50 T5 and $6,000 for a V50 T5 AWD, plus you can add in another $500 cash conquest/loyalty bonus on either vehicle. Most dealers in my area (New England) are willing to sell V50s at invoice. A third-party lease for a V50 T5 should therefore have a cap cost of $6000 below invoice, and a V50 T5 AWD should have a cap cost of $6500 below invoice. I just closed on a V50 T5 lease at these numbers. :)
  • timmbojtimmboj Posts: 123
    Does anyone have the MF and Residuals for a 24 or 36 month lease at 15K miles per year? Will the values vary with different third-party lease companies?

    The $6500 off that VolvoBuff mentions is very tempting.

    How does one go about finding a reputable third-party leasing company?
  • volvobuffvolvobuff Posts: 35
    The best numbers I have found on a 36/12K lease are 47% residual and .00205 money factor. Residual on a 15K lease should be about two points lower.

    Yes, residuals and especially money factors will vary substantially among third-party lessors. It pays to shop around. Current Volvo Financial Service leases are nowhere near competive on the T5 and T5 AWD, which is why Volvo is offering generous subventions for third-party leases.

    You can and should contact third-party auto lessors directly for quotes (check Yellow Pages and Internet), but my experience is that car dealerships offer products from bank subsidiaries such as JP Morgan Chase, US Bank, and Wells Fargo that are very competitive. Such big national bank lessors often offer products only through car dealers and do not deal directly with end customers. The financial manager at your dealership should be willing to provide you with competitive leasing offers from at least two 3rd party lessors plus Volvo Financial Services.
  • timmbojtimmboj Posts: 123
    Oh, ok. I didn't realize Volvo would lease through a third-party. I thought I had to do this on my own, and have the third-party leasing company purchase the car.

    Sounds good. Thanks!

    BTW: 2 points lower on the Residual? Or the MF? Or both?
  • volvobuffvolvobuff Posts: 35
    Residual. Bear in mind that one percentage point up or down in the residual value makes a substantial difference in your monthly payment, whereas five points or even more on the MF make relatively little impact on your payment. You might want to put all the numbers into an Excel spreadsheet and play around with them, in order to get a feel as to how important the various factors are and what the total cost over the full term of the lease will be.

    BTW (I realize this is off the leasing thread, but...) if you are considering both the V50 T5 and T5 AWD, as I think I recall from an earlier post, you might want to keep in mind that the AWD has a sport suspension, whereas the base T5 FWD does not, although it can be added to the FWD model with the Dynamic Trim Package. I test-drove both models, and the difference is fairly substantial. The V50 ride is very stiff to begin with, and the sport suspension makes it even more so. If handling and AWD traction are your primary concerns and you don't mind a stiffer ride, AWD is the way to go, plus you get another $500 lease subvention, which pays for a good part of the AWD upcharge. If, however, ride comfort and better fuel economy are of more importance to you, the FWD would be the better choice. I opted for the latter.

    Another issue is that if you are planning to buy a car off the lot from inventory, you are much more likely to find a selection of T5 AWD models available. My experience is that most dealers don't seem to want to stock T5 FWD models.
  • timmbojtimmboj Posts: 123
    Thanks for the info. Very helpful. I didn't know about the suspension automatically added with the AWD. I want the 6-speed manual, so I'm stuck with the AWD and the stiffer suspension, but I like the AWD, and the suspension will most-likely be ok with me. I'm looking for something sporty, yet utility-ish. But I'll test both just to feel the difference. BTW: what type of fuel mileage are folks getting with a T5 AWD V50?
  • volvobuffvolvobuff Posts: 35
    My guess is that Volvo opted not to offer the 6-speed manny tranny on the 2.4i and T5 models because it would have been way too easy to spin the drive wheels on acceleration with the FWD models. Both engines, but especially the T5, seem to have a lot more power and torque than their rather modest HP ratings would seem to indicate. Or maybe I just drive with a very heavy foot...

    If you find the ride on the T5 AWD to be too stiff, you can always mitigate that problem with other tires. The OE Michelin Energy MXV4 S8 tires are really disappointing in both ride and handling; I plan to replace mine with Bridgestone Turanza LS-V tires as soon as possible.
  • Hey all,

    does anyone know if the 3rd party lease incentives are still around? How does that work? Do i need to have a lease worked out before I walk in the door or do I tell the finance guy at signing that I want to go 3rd party (after negotiating)?

    And whats the current MF and residual on a 2007 2.4i 48 mth lease? 10K, 12K, or 15k if you know them.

    Thanks!
  • rxkerxke Posts: 148
    HI

    What is the money factor and residual value for a V50 in NY with 15K per year and a 36 or 39 month lease. I read in Automotive News that dealers are getting up to $2250 in incentives. I had that confirmed with a salesman.

    Thanks
    RXKE
  • Ok, I hit an elk with my old car so am now in the need of a new car quickly. I live up in the mountains in Colorado and am looking at the 2008 V50 T5AWD. I have a quote from Roaring Fork Volvo in Glenwood Springs as follows:
    MSRP: 38,817
    Cap cost: 33,444
    Total out of pocket: 2,874
    36 months - 15k/year 515/month

    Unfortunately I don't have any of the other details on the loan (residual, money value, details of out of pocket expenses) yet.

    I don't have a lot of time to do much research here - what's the consensus? Is this a fair deal?
  • Hi ryanc111. You hit an Elk with your old car :surprise: . I hope that everyone is OK. I could see where that would do some damage. Interestingly enough, a number of years ago I believe that I read an article about how a manufacturer, and if my memory is correct it was a Swedish manufacturer like Volvo or Saab before they were bought out, that conducted moose crash tests on new vehicles.

    Let's take a look at the deal that you were quoted. You are being given a huge discount on this car, over $5,000. This leads me to believe that the dealer you are working with is running your deal through a bank other than Volvo Finance. Volvo is currently providing a special $4,250 cash incentive on '08 V50 T5 AWD models that are leased through independent banks. When I add this cash to the likely $2,500 spread that this car has between its full MSRP and its dealer invoice price I come up with a total of $6,750 to play with. This probably puts the selling price that you were quoted at around $1,300 over invoice or so. This isn't bad, but it wouldn't hurt to shop around a little bit to see if you can beat this price by a couple hundred dollars if you have the time.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I am trying to work with a local dealer for a l24 month lease with little, to no down. I am looking at the base model, it does have fog lights & moon roof, but not much more. I was asking for a monthly payment in the mid $300's. They came back with $1,500 down and a $414 monthly for 48 months!?!?

    I told them that I did not want such a long term lease and they said that the payments will be a lot more for a 36 or 24 month lease. Is this right? It seems that the residual will be a lot less after 48 months? Are they BSing me here. If not, why are so many attractive lease payments on other cars between 24 and 36 months? Why would this be different?

    Nick
Sign In or Register to comment.