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Volvo V70 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited April 8 in Volvo
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo V70. Thanks.

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  • My wife and I will be approaching the end of lease for our Volvo V70 next in two months. It has been an incredible car and our first lease. We do however, find ourselves with a few questions that more experienced leasers might be able to answer.
    1) We leased for 12000 miles a year and did not use half that. Would we receive any credit for this on a subsequent lease? Can our next lease be lower than the 10000 mile bottom end that is advertised? 7 or 8000 would probably suffice for us.
    2) We leased through Volvo. Is there an advantage to leasing through a bank? Do they offer leases as well as straight purchase financing?
    3) We are on Long Island and stories about leasing companies pulling out of NY due to lawsuits targeting the lease maker makes it seem that the people still in the lease game might be charging more to cover additional possible expenses. Can I lease for less in a state where these liability laws do not exist? Am I forced to lease in the state of my residence? Do we have to return the car to the dealership that we leased from, even though the lease was from Volvo Finance? Make no mistake, we liked our dealership but don't want to be tied down in case there are better deals out there. Thanks for any help you can offer.
  • Hi obsqr. Unfortunately, banks do not give consumers credits for unused miles on their leases. The only way that you would be able to benefit from your vehicle's low mileage is if you were to purchase it from the bank that you are leasing it through for less than it is worth on the open market and then trade it in or sell it for a profit. The lowest mileage allowance that I have seen most banks offer is 10,000 miles per year. I don't believe that Volvo Finance offers leases with fewer annual miles than that, but you should ask the F & I person at the dealership that you are working with. Perhaps they can find a low mileage lease program that will work for you.

    Some independent banks lease vehicles to consumers, however most still prefer to do business through dealers rather than dealing directly with the general public. Volvo often offers cash incentives on vehicles that are leased through independent banks, so leasing certain Volvo models through independent banks can sometimes be less expensive than leasing them through Volvo Finance.

    The banks that did continue to lease vehicles to consumers in New York after the whole vicarious liability issue became a real problem did indeed charge higher lease acquisition fees to New York residents than they did to consumers in other states. Having said this, the government recently passed a law banning the frivilous vicarious liability lawsuits. As a result, many banks that had stopped leasing vehicles to New York residents are continuing to do so again and the banks that were charging higher acquisition fees there are beginning to lower them.

    You do not have to return the vehicle that you leased through Volvo Finance to the dealership that you originally got it from. You should be able to drop it off at any Volvo dealership at the end of your lease. Just make sure to make an appointment because most dealers get annoyed by consumers who just stop by cold to return their leased vehicles.

    Car_man
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  • CarMan-
    Can you give me the current Money factors and residual values for the 2007 Volvo V70 wagon? I am looking for 36 months and 12k miles per year. If there is a distinction for AWD, or you have figures for both the V70 and the XC70, I'll take them both.
    Thanks,
    burgermac
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey burgermac. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Volvo V70 2.5T with 12,000 miles per year are .00033 and 50%, respectively. The numbers for an otherwise identical lease of a 2007 Volvo XC70 are .00116 and 50%. When negotiating your lease on either of these vehicles, keep in mind that Volvo is providing $2,250 lease cash on them. This cash will help you to negotiate an attractive capitalized cost for your lease.

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  • briandcbriandc Posts: 9
    Thoughts on where these guys can improve?? Thanks!

    Volvo Lease Program - which I need to do because it helps tremendously with my local jurisdiction Personal Property Tax

    MSRP: $38,915.00
    Sell Price: $36,821
    Bank Fee $595
    Title: $195
    Rebate: $2,400
    Sale Price: $35,211

    Residual: 59%
    Purchase option: $23,459.85
    Miles: 10,500/YR
    Factor: .63%
    24 Mos
    Base Payment: 547.11
    7% taxe: 41.70
    Total Payment: $588.81

    $650.00 due at signing (which I think is the sec deposit.)
  • bk_mojobk_mojo Posts: 1
    I have never leased a car, now have i ever owned a volvo, but i am considering loeasing a 2007 V70 2.5L Turbo. The mileage cap will definitely be ok, but i don't have a clue as to how a lease works.

    Can anyone tell me if this is a good deal, and which element of this offer i can negotiate the best? Thanks!

    2007 V70 2.5L Turbo FWD
    msrp: $38365.00
    residual: 32% $12276.80
    term: 48 months
    total msrp - discounts: $38365 - $9890 = $28,475.00
    cash cap red: $0
    capped fees: $1179.00
    Adj Cap Cost: $29654.00
    Base Payment: $461.82
    up front payments: $461.82
    up front fees: $39.00
    up front tax: $300
    cash due on lease: 800.82
    Cash due at delivery: $800.82
    mileage allowed per year: 12000
    charge/mile: $0.18

    Any help would be GREATLY appreciated.
  • Here's the deal we just struck at Park Place Volvo in Dallas, TX:

    2007 2.5T in white, luxury edition, 36 mos, 12k miles/year, x-plan pricing

    MSRP $37,675
    Cap Cost $24,500
    residual 40%
    money factor .00295
    Cash due at delivery: $1000

    Monthly payments: $400
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on getting such a good deal on your new V70, karolinatx. Make sure to stop by the new Dealer Ratings & Reviews section of this site to share your thoughts on the purchase experience with everyone. Enjoy your new ride!

    Car_man
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  • ckm381ckm381 Posts: 1
    Hi. I am looking for some help. I have been negotiating with a dealer here in North Carolina on a 2007 V70 wagon. Basically, here is the deal that he has offered:

    MSRP $35,375 (2.4L Luxury package)
    Price for me: $25,988
    Lease term: 48 months
    Due at delivery: 1 payment
    Monthly payment: $480.43
    Residual Amount: $12,821.40

    What I was trying to get from him was a payment of around $375.00 for 36 months with nothing down. I have a 2005 Chrysler Pacifica that i leased in 2004 for 39 months at $363.00/month. The sticker was $33,515.

    Can anyone tell me if I am dreaming to try and get close to the deal that I am currently in, or is the deal that the dealer is offering me now about as good as it will get? He first tried to get me in a least at $490.53 a month for 48 months and I said no dice. Any advice would be greatly appreciated.
  • qbrozenqbrozen Posts: 17,706
    this topic gets little attention, huh?

    well, anyone know current MF and residuals on '08 or even '07 V70s?
    any trunk money we should know about?

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • Hey qbrozen. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 Volvo V70 with 15,000 miles per year are .00103 and 60%, respectively. The numbers for an otherwise identical 36 month lease are .00112 and 47%. Its 12,000 mile per year residual values would be 2% higher and its 10k resids would be 3% higher. Volvo is currently providing a $500 cash incentive on leases of the V70 through Volvo Finance. There also is $1,000 owner loyalty cash on it.

    Car_man
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  • murphy4murphy4 Posts: 92
    We have currently a 2006 V70 2.5t. We leased it for 36 months and we will hit 2 year mark in July 2008. We have now have three young boys who require car seats and it is next to impossible to get 3 car seat in the back seat. We are considering moving up to a xc90 with a third row but obviously don't want to pay a major penalty. Our car only has 14,000 miles on it and it's residual is $19,500 at the end of the lease.

    Is trading it in now even a possiblity? :confuse: :sick:
  • qbrozenqbrozen Posts: 17,706
    Ok, first thing is that you need to know what the current buyout is, not the buyout another year from now. Then find out what the true trade in value of the vehicle is. This is the difference you need to worry about. (as I believe you will find it cheaper this way than paying all the remaining payments right now)

    Second, you may want to reconsider the vehicle. If you believe you will have a carseat in the 3rd row of an SUV and live with it, I think you may be mistaken. Every time you go to put one child in the back, you will have to remove a carseat from the 2nd row so you can fold the seat to get to the 3rd row. Then put seat back and reinstall carseat. Not a process I would want to go through everytime I get in the car, personally.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • bill165bill165 Posts: 1
    What is it about this model Volvo that the car maker is afraid of...I have been into 3 New York area dealers and I can barely get them to talk to me about the car and they show it only relunctantly. They keep pushing their suv or cx model. I repeated that I came in to see the V70 and they still won't budge. One dealership (in Riverhead New York) would not even talk to me and I left after waiting 30 minutes. They keep saying people do not want to lease this car and once you can get them to give you a quote you see why. The CX costs more but leases for far less. I love the V70 but Volvo seems to run in the other direction when you try to purchase this model. Can anyone explain to me what's up with the V70?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi murphy4. 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.

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  • westend2westend2 Posts: 5
    Hi Bill165, I just wanted you to know, you are not crazy. I too live on Long Island and have had exactly the same experience. Not only at Riverhead, but every other Volvo dealership as well. I currently lease a 2006 v70. I actually have a manual 5 speed ! The car has been excellent . I get great gas milage (because of the manual transmission and 5 cylinders) and your brakes last and last. The bad news is my lease is soon up, the 2008 V70's are no longer available in a manual and Volvo has increased the size of the engine to 6 cylinders. Probably one of the all time stupidest moves in the history of cars, but that's another whole email. Anyway back to trying to get some one to show you a 2008 V70 is practically useless. I don't get it. They only want to show you the gas guzzeling 4wheel drive 6 cylinder xc70 with two stupid metal gullies going down the back of the ramp. What the heck are those anyway ? And they don,t want to hear anything. They don't care if you are a repeat customer, they don't want to deal, I guess they are doing so well, that they must not need our business. Yesterday, I went to Volvoville, and looked at a certified car that has been on their lot for 2 monthes. ( I know because I looked at it then ).They offered me the same deal they offered me the first time, $400. off the sticker price and would not budge. I said I'll buy this car if you give me a better deal. They said no. I said you'd rather have the car sitting there than sell it ? The sales person answered, " it's not costing us anything ". ......... That just cost them a customer.
  • ctorreyctorrey Posts: 64
    Car Man-

    My significant other is finally ready to pull the trigger on either a new '08 V70 or XC70 lease. In advance of the visit to the showroom, I'd like to get updated figures (residuals & money factors) on 36 month / 10k mile leases for both the '08 V70 and XC70. The lease will be completed in May.

    Thanks again! As always, very helpful!
  • cartalk8cartalk8 Posts: 6
    Here is a quote I recently got. This is after a few negotiations...

    2008 V70 3.2
    Seashell metallic with anthracite black leather
    Premium package
    Convenience package
    Personal Car Communicator
    17" alloy wheels
    Silver roof rails

    MSRP: $39,420
    Invoice: $37,003

    Your price (lease): $31,650.00

    36 month lease with 12,000 miles/year = *$476.99 + tax/month with minimum drive-off of $793.71

    36 month lease with 15,000 miles/year = *$487.69 + tax/month with minimum drive-off of $805.24

    Hope this helps. I do have a quote on the XC70 as well..
    2008 XC70 3.2 AWD
    Ice white with sandstone beige leather
    Premium package
    Climate package

    MSRP: $41,390
    Invoice: $39,041
    Your price (lease): $31,450
    36 month lease with 15,000 miles/yr = *$471.15 + tax/month with minimum drive-off of $786.41
  • stmssstmss Posts: 206
    Probably one of the all time stupidest moves in the history of cars, but that's another whole email. Anyway back to trying to get some one to show you a 2008 V70 is practically useless. I don't get it. They only want to show you the gas guzzeling 4wheel drive 6 cylinder xc70

    Hear! Hear! I just went through all this and when the dust settled, ended up with a Saab 9-5 Sportcombi. The V70 was actually going to cost me more than the XC70 - but I didn't want an XC70. I don't get it.
  • westend2westend2 Posts: 5
    Hi stmss- Lots of luck on your new Saab. It's a gorgeous car ! I too wound up buying another "brand" wagon. There are some of us out there who just want or need a plain old station wagon and since I'm not using it to climb up a mountain or anything I don't need the 4-wheel drive. Yes , the Volvo wagons are great cars, but they are also the largest station wagon in production at this time. They have no competition to their size. Perhaps this can account for the arrogance at the dealerships . ... perhaps they don't have to try so hard to sell them. I went to 5 Long Island dealerships and 1 in New Jersey over a two month period. In all that time, only one salesman showed me an actual V70 . He didn't even unlock the doors.!!! Also there is no reason for a V70 lease to cost more than an XC70. Ya think they're trying push the XC ?!! I don't get it ! .......I guess I'll never get it as I drive off into the sunset in my DIFFERENT BRAND wagon.
  • stmssstmss Posts: 206
    Out of interest - which brand did you end up with?

    This is my second 9-5 so I kinda know what I am getting into.

    I fear for the future of the plain old V70 - I would like them to introduce a larger wagon but the trend is to push everyone into a SUV or Xover. I am in western Canada so I don't think it is only a local Long Island issue. I had no problem with the dealer showing me a V70 but inventory was 10:1 favouring XC - hence the likely lower lease/purchase rates. I think the dealers fear they cannot resell a plain wagon these days when it comes off lease - but can turnaround an XC70. I found a similar thing happening at Audi a few years ago - dealers would not bring in or sell non-quattros - because they were stuck with them.

    I still have my 99V70 wagon - not sure what I will do with it. Even in 99, I had to get it shipped in and the dealer could not understand why I wouldn't want an XC70. I told them - don't need AWD, don't need extra weight/complexity, lower fuel economy, didn't like the steroid look. Thought I was from another planet.
  • westend2westend2 Posts: 5
    Hi stmss, I can see you are a wagon person like me. I think the whole Volvo experience has turned me off to leasing. I have leased many cars (all wagons of course). I've had 3 Audi's among other cars. But you will probably be surprised to know that I found a 2003 Mercury Sable wagon with only 5100 miles on it. For $10600.00 , I own the car , insurance is less and I can put as much milage on it as I want . It's actually a beautiful car and it is as big as a V70 ! I still have the Volvo which I'll be returning shortly. I 'll owe on excess milage and a $398.00 acquision fee !!? What a rip! I pulled out my original contract to see if I could get out of it, but there it was and I signed it ! They don't exactly highlight it, but I will tell you I have never had to pay it with other manufacters' leases. So in the end you wind up paying to get rid of your leased car !
    By the way, the Mercury Sable wagon is no longer in production. I think 2004 was the last year. Instead of buying Volvo, Ford should have decked out the interior of the Sable added a moonroof etc.,and gave the European luxury wagon manufacters a run for their money. They were so close, this car would surprise you.
  • stmssstmss Posts: 206
    I looked at the Taurus wagon in 99. Mercury is no longer sold in Canada. And the Taurus is now the Freestyle (or vice versa) . I have a Freestyle for work and although spacious it is not wagon like in ride, handling or performance. It is on lease and I am dreading returning it this year - over mileage, cracked windshield, likely need another (3rd) set of tires. For large wagon here we are limited to the 'premium' european models. I think Cadillac has a 'psuedo' CTS wagon? Maybe gas prices will see a resurgence of the domestic wagon?
  • westend2westend2 Posts: 5
    Once you own a wagon, you can't go back ! We can only hope that something good ( like more wagons ) could come out of the high price of gas... so nice to chat with you.
  • We are considering leasing a 2008 or a new 2009 V70 with navigation, premium package, technology package, climate, and roof rails. The car lists for around 41 or 42K. Does anyone have an idea of what the money factor and residuals for leases are on these wagons these days? Any other recent experience with leasing similar cars? Thanks.
  • I'm sorry I can't help with residuals or money factor. Volvo is a great car, however there are no bargins in leasing them. In fact , they have just about the worst lease deals of any car manufacturer I can think of. You can reread some of my experiences in past forums and I now own another brand station wagon. If you do lease one do not go over the milage. They are completely unforgiving even if you are a repeat customer and are standing there with cash in your hand to purchase another. Also ,Volvo has increased the engine size on the V70 from 5 cylinders to 6 for no apparent reason ( it was in fact one of the best rated 5 cylinder engines for many , many years ) thus gas milage is not as good as it was. Of course, they will tell you its a more" efficient" engine. Nothing is as effcient as a 5 cylinder with better gas milage. The only complaint I had about the V70 I owned was that it had a poor turning radius. Yes it is a long car , but you can rarely make a u-turn. Every turn is a three point turn and that is especially scary when traffic is coming.
    My overall rating: good solid product, not so great company, alot of arrogance at the dealerships. Good luck to you with whatever car you decide upon.
  • Hello wannamak. Volvo Finance's lease program for this model varies by term and mileage allowance. You never mentioned what either of these variables are, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different.

    Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Volvo V70 with 15,000 miles per year are .00257 and 48%, respectively. The numbers for an otherwise identical lease of a 2008 V70 are .00242 and 43% in the areas that Volvo is still providing support on it.

    Car_man
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  • miesmies Posts: 2
    Any thoughts on this deal in socal for 2008 V70 w/ premium and convenience packages? I'm a Volvo owner currently.
    36 mo / 12k lease
    msrp $39,220
    cap $29,800
    residual 39% ($15,295)
    $2,250 drive off
    $440/mo
    I'm not sure what the money factor is.
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