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Volvo V50 Lease Questions

2

Comments

  • 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: 153
    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
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  • 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
  • zabackzaback Posts: 5
    Carman,
    any lease incentives?
  • Hi,

    In Massachusetts here and trying to get my arms around a potential lease. Do we know what current deals are for this car? I want to be well armed before entering dealer. Thanks.
  • volvobuffvolvobuff Posts: 35
    You might want to contact Farrell Volvo in Southboro. I have recently leased two Volvos from them (S40 and V50) and can highly recommend them for excellent lease pricing and straightforward honest no-hassle customer relationships. Can't say as much for the half dozen other Eastern MA dealerships that I contacted.
  • Great, thanks for the tip. Are they leasing with a volvo program or another bank? Do you know the info on the lease factor, depreciation, volvo subsidy to lease company, etc.?
  • volvobuffvolvobuff Posts: 35
    I would gladly pass along the name of my great salesman and sales manager, but this forum does not allow me to do so. Both of my vehicles were special factory orders, including features not available on NA market cars; they were great at going to bat for me with VNA and getting me the cars I wanted.

    They offer leases through Volvo Financial Services as well as US Bank and Chase. US Bank had the best deals by far, both last May, when I got my V50, and last December, when I got my S40. VFS is simply not competitive, plus they require a monthly escrow of your MA excise tax. Lease numbers change from month to month and vary from one model to another, so any info I have would be both out of date and not applicable to your model.

    In general, however, you should negotiate the net sale price first as if you were buying the car for cash outright, expect to get the car for at or close to invoice, and then get the entire current Volvo 3rd party lease subvention deducted from the net price to generate the cap cost used in calculating the lease. If you don't know what these terms mean, you need to do some homework before you go anywhere near a dealership. There are all kinds of creative ways to get screwed on a lease negotiation if you don't know what you are doing -- not that I think Farrell would do that to a customer. Focusing just on the monthly payment is always a mistake. Good luck and happy negotiating!
  • hldsbrghldsbrg Posts: 1
    I live in Northern California and am looking for a volvo dealership that is offering a leasing program on the V50's. Does anyone know of any?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi hldsbrg. Technically, individual dealerships do not lease vehicles to consumers, banks do. You should be able to lease the V50 that you want through any Volvo dealer that you want to. Shop around and go with the one that offers you the lowest selling price. I don't believe that Volvo Finance is currently running a special lease program on this model. If not, then you will probably be better off leasing it through an independent bank. When negotiating your lease, keep in mind that Volvo is currently providing a special $4,500 cash incentive on leases of '08 V50 2.4i 2WD,$6,000 on V50 T5, and $6,500 on V50 AWD models. This cash will help you to negotiate an extremely low selling price.

    Car_man
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  • Car_man,

    On Edmunds.com the incentives listed are:

    1500 Cash to Dealer start: 01/03/2008 end: 03/31/2008 Where did you get the $6000 amounts?

    Thanks
  • nbmillernbmiller Posts: 1
    Car_man-

    I also spoke to my local dealers here in Pasadena, CA about the lease incentives you mentioned in #48. They didn't seem to know of any going on now for the V50.

    Tell me if I'm crazy or not: looking for a 36 month lease, $0 down, 10.5k miles/month on a T5, titanium gray, black leather w/ premium package for under $400 month.

    Seems possible if there are the incentives you say there are.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nbmiller. The cash incentives that I mentioned earlier have expired. This quarter, Volvo is only providing $1,500 on the 2008 V50.

    Car_man
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  • Anyone got any good prices on the Volvo T5 AWD wagon? trying to get and idea how much a loaded car would cost vs the bmw 3 IX wagon and the Audi A4 Q Avant

    Thanks,

    Dil
  • I'm contemplating a current lease deal on the 2009 v50 of

    MSRP = 31,650
    Sale Price = 23,327
    12k
    Plus 1k rollover on current lease
    $0 down
    $604 due at signing
    .0025 money factor = 6%(I think)
    ------------------------------------------------------
    $439/month

    Anyone have an opinion on this? Another option is to hold out till January when my current lease is up, but incentives rate may change.... All opinions on current deal and options are welcome..

    Thanks
  • Hello, I'm looking at V50s, 2009, 2.4i. What would the MF and residual be for

    #1 with
    - leather
    - climate
    - metallic paint
    - MSRP $33025

    #2 with
    - leather
    - climate
    - metallic paint
    - boosters
    - BLIS
    - MSRP $34020

    on a 3yr/36k-mile lease through Volvo.

    Also, what is Volvo's acquisition fee?

    Thanks
  • I talked to a dealer today who said that Volvo is offering $4,750 in "lease assistance" for leasing a V50. Does anyone know how this works? Is it a straight deduction from the negotiated sales price, or is it more complicated than that? :confuse:
  • Is that on the 2009 model? Does anyone know the MF and RV on a 2009 V50, base model (2.4i), 36/45k, in Oklahoma?
  • Sorry I forgot to specify. That was on a 2009 V50 5T R-Design, but I believe it applies to both types of 2009 V50s. I think it is actually called "alternative lease assistance" and I am thinking it may be an incentive that Volvo gives you if you get your loan with an alternative bank rather than through Volvo Finance but I could be wrong.

    I am also curious about MF and RV for the 2009 5T R-Design on a 48mo/10k lease in Chicago. Edmund's calculator seems to suggest the residual for this arrangement is around 44%.
  • Hi dtmcgarry. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 V50 2.4i with 12,000 miles per year are .00176 and 47%, respectively. Volvo Finance's current base lease acquisition fee is $595.

    Car_man
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  • Hi chicagoS. What you were told is correct. Volvo is currently providing a $4,750 cash incentive for leases of 2009 V50 through banks other than Volvo Finance. One cannot combine this cash and the special lease money factor that Volvo is currently providing on this model.

    If you opt to go with a non-Volvo Finance lease, negotiate the lowest possible selling price on the unit that you are interested in and then have the dealer subtract this incentive from that.

    Car_man
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  • Just a heads up and a thank you...

    Found this discussion after months of exhausting car shopping. (New, used, lease, etc.) I'm a Volvo owner, but the new models were just out of my price range.

    Well, using the incentive offer I found out about here, I got my wife a new V50 lease this week! I got an EXCELLENT price. Totally hit my target and probably wouldn't have without the lease incentive.

    I highly suggest anyone shopping get out there right now and at least look into it. I wonder if any other manufacturers are doing the same? I looked into Mitsubish and NIssan, but neither of them were willing to bargain on a lease rate at all. (Odd, considering the state of the auto-industry.)

    Anyway, thanks again for sharing the info. We're elated about this car.
  • You're very welcome, thenukes. I'm glad that you got a good deal. If you'd like, you can hop on over to the Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience with others. Enjoy your new ride :shades: !

    Car_man
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