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Volvo XC70 Lease Questions

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  • lungdudelungdude Posts: 1
    Hello Car Man,
    We are interested in purchasing an XC70 here in Florida. The Edmund's website lists marketing support of $5000 on this vehicle. There is no mention of the other lease incentives on Edmund's or on the Volvo site. Are these still active? If so, this would total $9500 in savings before the cap cost is even negotiated, correct? How does the marketing support amount fit into the picture?
    Thanks in advance for your response .
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello lungdude. Volvo is currently providing a $3,000 cash incentive on leases of the 2007 XC70 through Volvo Finance, a $9,500 cash incentive on leases of it through independent banks, and $5,000 on cash purchases of it. Negotiate the lowest selling price that you can on the XC70 that you want and then have the dealer subtract any cash incentives that you are eligible for from it.

    Car_man
    Host
    Prices Paid Forum
  • joewerthjoewerth Posts: 1
    Hi car man.
    Do you know when the $9,500 cash incentive on leases through an independent bank expires on the XC70? Thanks.
  • handelbobhandelbob Posts: 3
    Hi ALL. First time post, and this looks to be an invaluable resource. As of May 16 2007 curious if the same incentives apply from 4/27 Car_man post? I've been speaking with an "overseas delivery" broker who has advantagious deals that are described on the website plus an additional % discount, although in viewing what has been described, I'd consider going into a dealer. I'd like to be armed with the latest and greatest "deals". Once I get his quote in writing, I'll post it for comparison purposes.

    thanks
  • meshugymeshugy Posts: 24
    Hi Everyone...glad to find this forum!

    I've been shopping for a V70, but there are very few in the Seattle area. XC70s seem to outnumber them 20 to 1, and most of the dealers seem overstocked with them and are willing to deal. So even though I don't need all wheel drive, it looks like I'll be getting an XC70.

    I'm look at leasing a premium 2007 XC70. The deal is:

    Cap: $29,200
    $2100 due at signing (applied to 1st month payment)
    All fees waived: deposit, cap cost reduction, taxes, ect)
    12K miles a year
    Payments $379 a month.

    Sounds like a good deal, especially if they'll lower the cap cost a few K.

    Car_man and company what do you think? What are the current Volvo incentives?

    BTW, they say that "All leases exclude tax with the option to purchase at the end of term." Every lease I've seen has tax worked into the monthly payment. How can they exclude it?
  • masarakshmasaraksh Posts: 8
    Hi meshugy,

    Is it a 36 month lease? What is the residual on the car and a breakdown on the due at signing amount ($2100)?

    Thank you.
  • meshugymeshugy Posts: 24
    Yes...it's 36 month. I'm still waiting for a few details from the dealer. But they said the residual should be about $20K. It's getting to the end of the 2007 model year, so you get lower residuals. That's what I want, since I'll probably buy the car after the lease.

    The $2100 covers all the fees:

    License fee: $185
    Doc Fee: $35
    Cap cost reduction: ?
    First month payment: $411

    I also found out that they monthly payments don't include tax, so you'd actually be paying $414 a month, not $379

    Still a pretty good deal. If you calculate the cost to buy at the end of the lease it comes to: $37,04

    36 payments of $414: $14,904
    Down payment: $2,100
    Residual: $20,000

    Total: $37,04 (did I miss something?)

    If you bought a new XC you'd be paying around $39-43. Seems like a good deal to lease/buy.
  • meshugymeshugy Posts: 24
    After haggling with dealers all day, I came up with this deal:

    2007 XC70 with climate, convenience, and premium packages

    Term: 36 months
    MSRP: 42,950
    Cap: 30,950
    Residual: 18,039
    Down: 900 (includes 1st payment and all fees)
    Monthly payment: $517 (includes tax)
    Miles: 12000

    This seems to be the best I can get....looks like a good deal. If I buy the car after the lease is up I've paid
    $37,551. This same car would cost $42K if you flat out bought it.

    What do people think?

    One dealer told me the lease incentives are so good right now that people are leasing cars and then just breaking the lease a few months later and buying the car. The penalty is often only $1800. So you still get a good deal...
  • meshugymeshugy Posts: 24
    I ended up with a better deal today and drove home a new XC70. Nice!

    Here's what I got:

    XC70 with climate, convenience, and premium packages. Also had the air quality option and is wired for a sirius radio and an ipod. They also threw in a free 36 month service package and cross bars for the roof rails.

    Term: 36 months
    MSRP: 43,950
    Cap: 31,250
    Residual: 18,149
    Down: 750 (includes 1st payment and all fees)
    Monthly payment: $510(includes tax)
    Miles: 15000

    I'll probably buy the car at the end of the lease. Comes to $37,259. They also hit you with a $500 if you buy it at the end. But I should be able to negotiate the residual price down quite a bit. Could come out a few thousand lower in the end.

    This was the best deal of 6 dealers....required a massive amount of haggling. The dealer claims that he made almost nothing. Not sure I believe that, but it does seem fairly competitive.

    Overall, a pretty good deal for a new XC. I'd like to know what sort of deals other people got
  • tenmilertenmiler Posts: 21
    My 2004 XC70 lease is coming to an end at the end of August. So as a lease newbie I'm trying to weigh my options. Any advice would help!

    I paid for 15K miles/year for a total of 48785. However, I will likely end the lease 20-22K UNDER that. I don't know that it means much more than I overpaid/overestimated my use, but it makes me wonder if I should consider buying the car at the end of the lease and reselling it with it's low miles. My purchase option is 22082.50 (including the $500 charge)

    My 04 XC Came with the premium package, the Audiomax package, Xenon, Booster seats.

    Gross Capitlaized 35468.26
    -Capitalized cost reduction--paid up front (3016)
    = Adjusted Cap. Cost = 32452.76
    -Residual value: 21582.50
    =Depreciation/amortized amounts: 10870.26
    + Rent Charge: 4783.74
    =Total base of monthly payments: 15654.00
    x 39 months with $11.64 sales tax = $413.02

    At the end of the lease I will have paid $19615.74

    I'm interested in the V50 this time around, but not likely the 2008 XC or a 2007 XC. But I"m also checking out the Mazda CX7, The Audi a4 wagon, and maybe the BMW 325ix wagon. It's been a fantastic car for me!
  • meshugymeshugy Posts: 24
    Hi Tenmiler,

    Interesting to see your lease from way back in 2004. As you can see from my #s posted above, you can get an even better deal on an XC right now. Volvo is offering Dealers over $9K to move the 2007 model, presumably to make room for the redesigned 2008. It's the end of the model year AND the end of this designs lifespan (10 years). So they want to get them off the lots. Local dealers still have loads of them, so they're willing to do just about anything.

    I'm not familiar with deals for other models, may also be very competitive right now too. But the 2007 XCs seem to be a very good deal.

    Good luck!
  • brifromdcbrifromdc Posts: 14
    I'm getting ready to lease an 2007 XC70 and would love to get have an idea of what others have paid in the last few weeks. Thanks
  • meshugymeshugy Posts: 24
    I'd like to hear what sort of deals you're getting. I leased last week and got:

    XC70 with climate, convenience, and premium packages. Also had the air quality option and is wired for a sirius radio and an ipod. They also threw in a free 36 month service package and cross bars for the roof rails.

    Term: 36 months
    MSRP: 43,950
    Cap: 31,250
    Residual: 18,149
    Down: 750 (includes 1st payment and all fees)
    Monthly payment: $510(includes tax)
    Miles: 15000
  • fargodogfargodog Posts: 13
    Hello,
    Great site. Lots of good info. I am looking at getting out of my 2006 Saab 9-3 lease and into a Volvo XC70 lease. My lease ends 12/31/06. It is a 24 month lease, 25,000 miles per year, so I have 7 payments left of $745.41 per month with a total of $4969.37 left. I just spoke to a local dealer and here is what the lease would be without factoring in the Saab (sorry, don't have all the info, first contact and need to get payoff on Saab before asking for all the numbers). It has the premium, convenience, and climate packages.

    (before factoring in current Saab lease)
    Term: 36 months
    MSRP: 42,800
    Cap: unknown
    Residual: unknown
    Down: 2200 (includes 1st payment and all fees)
    Monthly payment: $572(includes tax)
    Miles: 28,000 per year

    Yes, that is correct, 28,000 miles a year. I have driven this many miles a year for the last 5 years consistently.

    Has anyone leased an XC70 recently with this many miles (or close to it) per year?
    Has anyone bought more miles under the warranty so that the car is covered for the miles as well as months? How much did it cost?

    Any info on high mileage leases on the XC70 greatly appreciated.
  • tenmilertenmiler Posts: 21
    Thanks mesguy. Sure looks like the pricing is attractive; guessing your monthly is higher than mine because you didn't do any cap cost reduction on the lease.

    I may consider an 07, but I think I want a change. Given the first year issues with Volvo (2001 XC70, 2004 V50), I think I'll shy away from the new XC70 but I'd rather not drive a car that's going to be outdated for a few years.

    That said, it has been a terrific car and if I could (finally) get DSTC on the car. Volvo, for no reason I can find, made it nearly impossible to get DSTC on '04 XC's--I could not find one anywhere in Colorado, where it would make a huge difference in icy road handling--something the XC70 was mostly okay at, but not great.

    The best part was the dealer--McDonald Volvo in Denver--made fun of DSTC, saying it was a 'useless novelty' (apparently a novelty that is now offered standard on nearly every crossover and every SUV and also is now required on SUVs)

    That is why I will not buy this car at the end of the lease.
  • meshugymeshugy Posts: 24
    Too bad about the DTSC.

    Cap cost reductions are a waste. If you do the math you always save more by just paying the min. fees up front and having a higher monthly payment. At least that was the case in nearly every lease I've seen.

    good luck!

    'm
  • ericflericfl Posts: 6
    After a few weeks of looking and negotiating we did this deal today. 2007 XC70 with premium and convenience packages including sirius set up.

    Term: 36 months
    MSRP: 43,658
    Cap: 28,909
    Residual: 18,800
    Down: 1500 (includes first, tax, tag and fee's)
    Monthly payment: $424 (includes tax)
    Miles: 12000

    Feels like a good deal and the wife is happy... Well, right up to the point when we noticed gas leaking on to the driveway and a flatbed came to pick it up only an hour after we got it home. :cry: Let's hope it's not major.
  • meshugymeshugy Posts: 24
    That's a really good deal! A bit better then what I got....I wonder how they got the Cap so low. I haggled 6 dealers to the brink of exhaustion and none could get the cap lower then $31K. This is in Seattle...where are you?

    Although my residual was slightly lower and my miles were higher (15,000). But in the end, if you bought the car you'd be paying about $1.5K less then me. Good work!
  • ericflericfl Posts: 6
    I'm in Florida and I bet your car was not on a flatbed an hour after you got home with it. ;)
  • meshugymeshugy Posts: 24
    Good point! We took it on a road trip this weekend. It has several hundred miles now and is running great (fingers corssed).
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