2013 and earlier Volvo S60 Lease Questions

qbrozen · May 2006

I'm not sure how you are getting $672 through edmunds. Like I said, I'm getting $590 using your numbers (excluding the excise tax).

Are you using the MSRP in the top box rather than the purchase price? That box is for purchase price. Also, the residual is calculated off the MSRP, not purchase price. So your residual number is like $23k and change. Then, of course, enter your tax rate and MF.

ecoastharley · May 2006

You know... I might have been doing that, using the MSRP in the top box. It seems to be coming out right now... with my most recent deal number.. .$546 and change.

I am pretty happy with the number, so I think I am going to pull the trigger.

Thanks everybody for the assistance.

petrus36 · May 2006

I am in Florida and can get the 2006 S60R for $650 drive off and $445/month including tax. This is with the premium package. This sounds like a great deal, no??
Metallic paint and the plush leather interior.

petrus36 · May 2006

qbrozen · May 2006

That does sound pretty good. Kinda too good. volvomax? is this even possible? With 53% residual and no trunk money, that number isn't possible even with 0% interest on a 3-year lease.

Then again, you didn't say how many months. Is that like a 60-month lease?

volvomax · May 2006

Actually, it is possible, and it is a very good deal.
Volvo dropped a ton of cash on the S60R if you lease it through a bank.

sameem · May 2006

I contacted a dealer yesterday about an R, and I was quoted $499 a month including 8.25% tax, with $1995 drive off. This was with an MSRP of $45,670. He said there were new incentives being introduced just today, but didnt specifically say what they were. I have an appt to test drive the car today, I will post more details about the deal tonight when I return. But I think this is an excellent starting ground. I want to get mid $400's with 0 zero down.

qbrozen · May 2006

But didn't you say a bank would use a 43% residual?

And what are current bank rates? Aren't they around .002 MF?

petrus36 · May 2006

The lease is 36 months/12,000 miles year. I know I should grab it. I don't think they sell too many AWD down here in FL, but I am moving to Vermont and am alittle concerned about the performance tires in the snow. I am also looking at the BMW 325IX, but the lease deal is not as good.

petrus36 · May 2006

volvomax · May 2006

There is $10,500 in lease cash on the R starting today.
Makes a big difference in the lease program.

sameem · May 2006

Does that mean we get $10,500 off MSRP? And then use that as our cap cost? What is the money factor and residual of that deal? Or is it for outside financing?

volvomax · May 2006

You have to go thru an outside lender.
Money factors and residuals can vary by lender and the factors are dependent on your credit score.

kyfdx · May 2006

You should be shooting for a price that is more than $10,500 below MSRP.

If you pay MSRP - $10,500, then you've basically paid MSRP for the car...

I'd try for INVOICE minus $10,500.. That might not do it, but I bet you'll be within $1000 of a deal..

regards,
kyfdx

sameem · May 2006

The lease payment still comes out better using Volvo financing, considering outside financing's residual and MF. Even with the $10,500 off invoice. I don't plan on buying the car at the end of the lease, so it'd be better to go with Volvo finance. These cars are going to go fast with the new incentives.

qbrozen · May 2006

What should someone expect for a top tier bank MF these days? I can't seem to find that info online anywhere.

Does the volvo dealer get you outside lease financing? Or do you have to do that on your own? What is the ALG residual on an s60R after 3 years/15k per year?

I don't know about volvo finance being better, sameem. Just look back at the recent posts from someone leasing an R through volvo. the payments are quite a bit higher than petrus's deal, for instance.

kyfdx · May 2006

I checked Leasecompare (just curious, you know)...

3yr/45K... 44% residual.. .00176 MF..

Assuming $42K MSRP and selling price of $30K, I think their price was under $500/mo.. with only 1st payment and security deposit upfront... Acq.fee rolled into the lease..

Didn't really check it out closely... Just interested in the residual and MF...

I'd be surprised if Volvo Finance could beat that... and, if you have any thoughts of actually buying the car at lease end, you definitely want to go with the lease with the lower residual, all other things being equal..

regards,
kyfdx

qbrozen · May 2006

Thanks for the info.

Using that residual and MF, I came up with the following using Edmunds calculator:

MSRP: $42,875 (climate, premium, and convenience packs)
invoice: $40,325
selling: $30,000
residual: $18,865
down: $1400 (roughly security, tags, and 1st month)
tax: 6%

= $416.20/month

Not bad for the car. Unfortunately, its nowhere near where I want to be. I know the 2 cars don't compare, but I'm looking at an Accord 6-speed sedan, and that's about $140 less per month. Really, the only advantage to the volvo is that its a hair faster, has AWD, and the adjustable suspension. Granted, these are cool advantages, just not enough to make me pay 1.5 times the money.

Hey Vmax ... any chance they are offering that kind of money on the T5??

volvomax · May 2006

Since Volvo came out w/ the $$ on the R the lease program from VFNA has been changed. They raised the money factor to .00141.

volvomax · May 2006

OMG are you kidding!!!!!
An Accord????

I make it a rule never to dog someone's car choice, but man you are making it hard on me today.

Seriously, I understand budgets, but if you spent ANY time in an R you wouldn't look twice at an Accord.

While there is money on the T5, its not near the same car as the R.

qbrozen · May 2006

But its still no combining the money with VFNA rates, right?

What kind of money on the T5?

qbrozen · May 2006

Seriously, I understand budgets, but if you spent ANY time in an R you wouldn't look twice at an Accord.

Well, a budget is a budget.

The ONLY reason I'm even contemplating leases right now is to lower our monthly bills. My car payment is $390 and it takes premium gas at 22 mpg. So I'm looking at saving $100/mo with the accord payment, PLUS about $50/mo in gas.

Have you been in a new Accord? I actually drove an S60 2.5T and S80 T6 after driving an Accord and liked the Accord quite a bit more. Of course, I still lust after an R, so I know what you mean ... I just don't lust after it to the tune of 1.5 times the money.

volvomax · May 2006

But its still no combining the money with VFNA rates, right?

-Correct
$9000 on the T5

volvomax · May 2006

Again, I'm not dogging the Accord, for what it is it is a fine car.
But it is STILL an Accord, which means that it is tinny, the seats aren't near as good as Volvo's the brakes won't keep up w/ spirited driving and everyone and their grandmother has one.
Not a day goes by that someone doesn't do a doubletake on my R or give me a complement on it.

qbrozen · May 2006

ya know, i find it really odd that 2 cars that are supposed to be in different leagues have salespeople for each brand so outspoken against the other. I'm specifically thinking of volvomax here against Honda, and isellhondas against volvos. Isell thinks volvos are so unreliable, expensive to fix, etc, while vmax thinks hondas are not nearly up to par with volvos.

Fact is, both are wrong, in my opinion. I found my volvo pretty reliable and no worse to fix than any other car i've owned (including a honda). And, on the other side of the fence, I've found current Hondas to be every bit as luxurious, quiet, and solid as Volvos.

Go figure.

qbrozen · May 2006

But it is STILL an Accord, which means that it is tinny, the seats aren't near as good as Volvo's the brakes won't keep up w/ spirited driving

I used to think that way, too.

Their newest generations have changed my mind. They really are amazing cars for the money.

volvomax · May 2006

difference is we take in Honda's all the time, and I doubt isell takes in many Volvo's. If he does they are probably 10-15 yrs old.
One of our customers hit a semi head on in a new S40 and walked away. I sure wouldn't want to try that in a honda.

qbrozen · May 2006

$9000 on the T5

ok. thanks. i'll have to look into that, too.

maybe i should also consider a base S60R ... hmmmmm....

Hey, does the money on these also apply to the wagons? (both R and T5)

qbrozen · May 2006

I checked Leasecompare (just curious, you know)...

3yr/45K... 44% residual.. .00176 MF..

hmmmm... how are you coming up with that number on their site? It always gives me MFs in the .0025 and up range.

edit: oh, never mind. i went through a different link and now it gives me that rate.
ack! ya know what it is? it won't give me that rate in my zip code. What the heck is that all about?

qbrozen · May 2006

why would they offer the big money if you lease through a bank other than VNFA, but not if you purchase?? What is in it for them?

If they are getting a kickback from the bank on a lease, then does that mean the money is not available if you arrange to lease through your own bank?

If you do go through the dealer and use one of their banks, can you expect competitive rates? Vmax ... you may not have this info, but do you know what kind of rates someone can expect (assuming credit above 720) by walking off the street and using a bank through the dealer?

kyfdx · May 2006

"why would they offer the big money if you lease through a bank other than VNFA, but not if you purchase??"

Can't you still get the money on a purchase? I think it is only on a VNFA lease that you can't get the money...

Also, I used leasecompare's own zipcode (they aren't far from where I live)... Perhaps they have a local bank that gives them a great rate.... They are owned by a local car dealer group..

regards,
kyfdx

qbrozen · May 2006

according to vmax, its "$10,500 lease cash."

kyfdx · May 2006

I see that now.... Not sure why it would matter, as long as they don't have to take the car back..

I bet volvomax will come back and clarify for us..

volvomax · May 2006

The reason why is that most people in this category lease rather than buy.
Also, the Motor Co prefers leasing since they know you will be back in the market for another car in 3-4 yrs.

francisbaken · May 2006

I was just at a dealer. This is what they printed out for me on a 2006 S60 R

$45275.00 -MSRP
$35275.00 - SALES PRICE
36-TERM Months
15,000 -Mileage/year
.00325 - RATE
$698.20 - CASH
.43 - Residual
$132.15 -Govt Fees
$78.73 - Taxes
$50.00 - Doc Fee
$698.20 - Initial Payment
$648.20 - Payment - JP Morgan Chase
$19468.25 - Residual
$795.00 - ACQ Fee - Up front
$150.00 - Disp Fee
$150.00 - Purchase Opt Fee

$45275.00 - Residual Basis

He said they had a way to not charge Texas sales tax. he said that cost him about $500.

.10 - Cents Mile Begin
.15 - Cents Mile End
300 - Demo Mile Thresh
.15 - Demo Cents Mile

qbrozen · May 2006

that money factor works out to 7.8%, which seems a bit high to me.

Really depends on your credit, though.

Also, that's still $500 over invoice, so i think you have a bit more room to play in the price.

And what is with those 2 fees at the end? Are those built in already? Or are you just stating those? You certainly shouldn't be getting charged disposal and purchase option fees up front (and absolutely not both at once at any point in time!).

francisbaken · May 2006

The disp and the purchase option fee seem to be at the end of the lease I think. I just added those cuz I'm not sure what they are yet.

7.8%? There is no way I'd pay that kind of rate for anything. Suffice to say credit is not an issue for me.

petrus36 · May 2006

I just bought the car down in Florida, with $43,250 MSRP for 36 months, 15K mileage, $655 total drive off, and $455 month. I would work him!

asd302 · May 2006

MSRP: $45,800
Sale Price: $31,000
Residual: 43%, $19,694
Money Fctr: .00202 = 3.95%
Down Pymt: $0, just inceptions of $1000
36mo/15k/yr

$439/mo + tax = $468.51/mo

Deal or no Deal??

qbrozen · May 2006

hmmmm... i come up with 4.85%. Am I calculating wrong? I thought the equation was MFx2400.

If I'm wrong, I gave the wrong info to the last poster. oops.

qbrozen · May 2006

Oh, ya know, I screwed up your deal completely. This is not true:

Also, that's still $500 over invoice, so i think you have a bit more room to play in the price.

That price is $500 over MSRP minus the dealer cash!! WAY too high! You should be about $10,500 below INVOICE on that car.

francisbaken · May 2006

No big deal, I appreciate the help.Here are the numbers on the car itself:

MSRP Invoice
$38,385 - $36,117 - Base Price
$6,195 - $5,501 - Optional Equipment*
$695 - $695 - Destination
-------------------------------------
$45,275 $42,313 Total with Options

So, I should be around $31,813???

*Metallic Paint($475/$408) / MC150 premium Package ($2,400/$2,064) / 800034 Sport Body Package ($1,995/$1,715) / TMP905 Geartronic Trans ($1,250/$1,250) / 000682 Sirius Radio Prep ($75/$64)

qbrozen · May 2006

So, I should be around $31,813???

Correct.
Volvo is giving $10,500 cash because the cars are not moving themselves. So asking to get the car for invoice minus the incentive is perfectly logical. I certainly wouldn't kill myself to pay up to $500 more, but $31,813 is a good starting point.

francisbaken · May 2006

So, I suppose the other issue is the money factor? It appears that .00325 x 2400 = 7.8%. I should be getting the best rate available and that does not look this is it.

Thanks for the help!

francisbaken · May 2006

I'm at 32,118 with them now. -$9,500 under invoice. Still working on the money factor.

qbrozen · May 2006

good luck.

but... didn't you say invoice was $42,3xx? So you are over $10k below invoice now, which is right where you should be.

francisbaken · May 2006

Invoice is $41,618. I had the destination included before.

hushh · May 2006

Hey asd302,

Would you mind telling what lender you went through to get that MF?

Thanks.

sadiml · May 2006

Just getting in the market for the S60 and reading about the lease cash.... can't find it anywhere on the Volvo site. Is it still in effect??? Need help fast making a visit to the dealership today!! :confuse:

qbrozen · May 2006

Its not advertised because its dealer cash.

volvomax will have to let you know if its still in effect, but usually manufacturer programs are set up on a monthly basis, so today may be the last day before the June programs start up (whatever those may be).

2013 and earlier Volvo S60 Lease Questions

Comments

Helpful Tools

Most popular vehicles