Volvo XC70 Lease Questions

pawnbroker · February 2008

Just wanted to let you guys know that I leased the XC70 for my wife on 2/28/08.

Here are the details:

Zero Down
10,500 miles/year
24 Months
Fully Loaded including Volvo GPS

$500/month

How'd I do???

aillon · March 2008

Hi there, I have been reading the board after receiving my first quote over the phone. I can get 15K a year for 454$ 1893 down and a residual on 08 XC70 of 20,141. From all the other messages this sounds like a deal? The financing is through a 3rd party and the dealer is located in New London CT. What do you think?

crestonave · March 2008

Where do you folks find these "third party" leasing companies? Are they safe to do business with? Do they try to kill people with excess wear and tear stuff when the car is being turned in? Any direction would be appreciated?

qbrozen · March 2008

A third party is anyone who isn't the buyer or the manufacturer. So the bank you have your accounts with could give you a lease. So, yeah, if you trust them with your money, why not your lease?

kyfdx · March 2008

Volvo dealers work with third party lessors, all the time... You don't really have to find them on your own...

Third party lessors tend to be a little pickier on turn-in issues, and of course, will never waive a disposition fee... but, it's not a big deal..

crestonave · March 2008

Thanks. I recently discussed a lease with my Volvo dealer and he quoted me a much better deal than Volvo had advertised in the local papers, so obviously dealers use third party lessors as well. I'll check my bank as well. Thanks.

iwin1 · April 2008

I'm interested in leasing either an XC70 or V70 for 36 months and 36,000 miles. Can you provide the residual values and money factors for both cars? Do you know if the $1,000 current owner and $500 lease cash are still available in April?
Thanks

wrj1 · April 2008

Came across the following offer for April for new XC70: $399 per month + tax, 24 month, 10,500 miles/year. MSRP $44,200. Sale price $40,090. $2,500 total due at lease inception which includes $0 security deposit; plus tax and license. $1000 loyalty bonus.

(a) What are the chances of getting the bonus and not being a current Volvo owner? Can the dealer use their discretion and offer it to a non-owner to seal the deal at month end?
(b) Were I to get it, is it reasonable/possible to reduce the total due at lease inception to $1500 and, further, to request that the $1500 be paid over 24 months, making the monthly payments $460/mo + tax?

Thanks!!

topcat02 · April 2008

I was offered the following lease from a dealer in metro NYC(Mt Kisco):supposedly thru a 3rd party bank. I am a current volvo owner.
volvo XC 70 36 mos/15K
premium/convienence/climate/collision avoidance packages plus BLIS in a nonmetallic exterior color. No navigation system.
MSRP 46,755
selling price 36,059
residual value 21,039
money factor 0.00163
adjusted cap cost 36,511
sales tax 1,503 (this is included in the monthly payment)
upfront fees 762.50

monthly payment 523.57 (this includes the sales tax)
due at signing 1,337.33
Do you think this is a reasonable offer and do you think I can do significantly better.
Thanks,

Ron

wrj1 · April 2008

It is my understanding that Volvo's current money factor is .00001 for 24 months, so you would be better off with that rate (2% vs 4%) if a 24 month lease works for you.

Also, are you really planning on driving 15000 miles per year? If you were to use a lower number (10500 or 12000 miles), that would bump up your residual, thereby further reducing your monthly payments. (You pay .20/mile either way, so you can pay upfront or pay for what you actually you and thus reduce your monthly payments.)

Did you make sure you reduced your selling price by getting the $1000 Volvo loyalty bonus?

I was able to get the following on a 2 year lease, and I haven't even started haggling yet:
MSRP 44,105
Cash sale Price $39,596.72
Residual $27,786.15 (based on 12000 miles; 29000+ if 10,500 miles)
Rate .00001
$888.72 Drive off
$478.40 + tax ($517 with tax)

Last month, in the last few hours b4 month end, they offered to waive the drive off to get me to close. Might be worth asking for if you can wait until month end.

cheyjey · April 2008

Can anyone out there verify that the above .00001 is the actual lease factor being offered by Volvo right now?

topcat02 · April 2008

I will probably drive 39, 000 to 40,000 miles in 3 yrs, so you are right, maybe it would be better to pay the 0.20 /mile at the end of the lease. But I do want the 36mos lease. I don't know if I can do much better on the money factor that I was quoted. Are you sure that that money factor is 0.00100 and do you think that would also apply to a 36 mos lease?

wrj1 · April 2008

As concerns mileage, perhaps you ought to go with 12,000/year vs 15?

When I questioned the accuracy of the .00001 money factor for a 24 month lease, my Volvo dealer (No. CA) sent me an email confirming it was true. (It was .00027 in March, btw). The folks at Cartelligent also confirmed. They said Volvo tended to have aggressive financing. I doubt, however, that 2% would also apply to a 36 month lease. The money factor is not something you can negotiate; it is what it is, and is dictated by the financial institution doing the financing. You can try to get a better rate than the manufacturer's through a 3d party, as you did. You might wish to inquire as to how Volvo's rate compares to be sure you are getting the best rate.

chalf · April 2008

I leased my first car so I don't know the deal on regular maintenance. My first was free and the second regular scheduled maintenance cost a bundle. Is there any reason I need to go back to the dealer for maintenance? What do you experienced lessees recommend? Thanks

wilks3 · April 2008

has anyone leased through the overseas delivery program? I am getting a great price $ 35,110 for a msrp $ 43,060 XC70 but the lease money factor is based on a 6.9% rate through Volvo Finance. Any way to get a better rate?

topcat02 · May 2008

I want to buy back my volvo XC70 (2005) with 37K miles from volvo finance.
Does anyone know what book value best approximates what my offer should be?
Should I use something close to the "trade in value", :private party value" or the suggested retail price"?

CarMan@Edmunds · May 2008

Hi chalf. You definitely do not have to go to a Volvo dealer to have maintenance performed on your leased XC70. I'll take that statement one step further and add that you really don't even have to perform any maintenance on leased vehicles other than change the oil and perhaps rotate the tires to protect them from excess wear. Doing anything above and beyond that is a waste of money. If you decide to go to an independent repair shop, Jiffy Lube, etc... to have your vehicle's oil changed, just make sure to hang on to the receipt just in case.

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cheyjey · June 2008

Hi,

After spending some time here and shopping, I just leased an XC70 so I thought I would put the details here for everyone. This does include the 1000.00 Volvo credit for existing Volvo owners:
MSRP - 44,325
Agreed Upon Selling Price - 37212
Adjusted Cap Cost - 36518
Term - 24 mos
Miles - 12K/yr
Drive Offs - 990
Monthly Payment - 420+ tax
Residual: 28058.31

I don't have the money factor but I asked and it is very close to 1% when converted to an interest rate.

CarMan@Edmunds · June 2008

Congratulations on getting your new XC70, cheyjey. Thanks for giving back and taking the time to share the details of your lease with everyone. Make sure to stop by the Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience as well. Enjoy your new ride

.

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novalauren · July 2008

I am currently negotiating a lease deal...36 months...12k miles per year...and looking for the money factor....thanks!

sweeney4 · July 2008

I got offered the following,
Demo model 5,000 miles
msrp 44,005
residual 24,882
selling price 31,000
money factor .00208
379 per month
$600 out of pocket.

kyfdx · July 2008

What is the mileage allowance? Looks pretty darn good!

sweeney4 · July 2008

12k per year, in addition I also get free scheduled maint. for 2 years and brake pads if needed.

kyfdx · July 2008

That's a great deal..

Now.. if I could just convince the wife that it's an SUV and not a wagon, we'd be in business!!

qbrozen · July 2008

Damn. That is good. Even 15k would probably still be right around $400/mo.

dc_dave · July 2008

Please tell me what you think, how much better can I do?

36 months, 15K per year

2008 Volvo XC70 3.2 AWD in Barents Blue with Sand stone leather, Premium package, Climate package, Convinience package, Blind spot information system, Boosters. M.S.R.P. $ 44250, lease sale price is $ 32636, 36 month lease with 15K miles per year is $ 541 per month with 0 down, just taxes and tags ( $ 1158). Money factor is $ 0.00233, residual 0.42 ( $18585).

2008 Volvo V70 3.2 in Barents Blue with Sand stone leather, Premium package, Climate package, Convinience package, Bi-xenon, 17" wheels, Personal car communicator, Boosters. M.S.R.P. $ 40445, lease sale price is $ 31985, 36 month lease with 15K miles per year is $ 574 per month with 0 down, just taxes and tags ( $ 1158). Money factor is $ 0.00233, residual 0.42 ( $16986).

Dave in VA

cheyjey · July 2008

I think you can get a better deal than that. I have the same color combo car that I bought last month with the following terms:
After spending some time here and shopping, I just leased an XC70 so I thought I would put the details here for everyone. This does include the 1000.00 Volvo credit for existing Volvo owners:
MSRP - 44,325
Agreed Upon Selling Price - 37212
Adjusted Cap Cost - 36518
Term - 24 mos
Miles - 12K/yr
Drive Offs - 990
Monthly Payment - 420+ tax
Residual: 28058.31

My total down was only drive offs as well and was less than yours above. Also my payment is 420/mo and that is a 24 month lease!

What I learned while there is that you need to choose the lease promo that they are doing with each car. I was told that for the XC or V the sweet spot is 2 year, and for the SUV it is 3 year.

dg170 · August 2008

Would love feedback on the following:
2008 XC 70 with Premium and Climate package
MSRP 44,535
Term 27 months
Cap Cost 32,296.61
Miles 10k
Residual 24,939.60
Monthly: 499.87
No money down

Thanks!

CarMan@Edmunds · August 2008

Here you go, novalauren. You never mentioned whether you are interested in the 2008 or the 2009 model, so for now I will assume that you want an '08. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base '08 XC70 with 12,000 miles per year are .00084 and 48%, respectively.

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pointa · September 2008

My husband just negotiated a lease deal for a 2008 XC70. I have been searching this site trying to find out if what he got was a deal or not, but the cars listed here are more expensive and it's hard to tell. I don't have all the figures that I see other people posting, but I do hope you will be able to give me some feedback with the info that I do have. I appreciate any help. By the way, we live in Northern New Jersey.

The car is a New 2008 XC70 base model - black. No bells or whistles, just standard equip.
MSRP - I believe was $37,000 (or just slightly over)
Term - 36 months
Miles - 12K
Money Down - $1,800 (INCLUDES tax, title, reg., first month payment)
Monthly Payment - $385

vancouver83 · September 2008

I am no expert and really here to learn. However, I was doing some negotiations with a dealer regarding a

2008 XC70 with the premium and convenience packages and the price was roughly around $33-34,000 (this is in PA near Philly). With the 2009s coming in and these cars not being great with gas,etc, I think $37,000 for the base with nothing extra is a little too much but I leave it to the experts to give the correct answer.

pointa · September 2008

Thanks for the reply. I appreciate any feedback. The $37,000 is the sticker price. I think the sale price was around $26,000-$27,000. I wasn't totally sure of the price that is why I didn't put it in. I just want to know if anyone had any thoughts to the monthly lease price on a base car. It seems that people are paying far more, but that is also for a more expensive car, so it's hard to tell if it's a good deal or not.

Some of these dealers (in NJ) seem to think they are sitting on a pot of gold and are willing to turn away offers. We've walked out of a few places and they were willing to let us go. At least, that is what I've experienced over the past month or so.

Are you leasing or buying? Do you care to share your negotiations thus far?

vancouver83 · September 2008

I like to lease because you never know how things will change in a few years (without a dog, I may not need a stationwagon).

I generally do all of my negotiating via email. I decide what options I want, look into the inventory of the dealers (online), and then ask for best price they can offer on a vehicle. In the past, I would then go in and negotiate for a lease or buy (never telling them ahead of time). I am now getting too impatient, I tell them I want to lease give, them VIN of the vehicle in their lot that I am interested in, and ask for all of the specifics -- monthly lease payment with no money down, money factor (interest rate if you multiply by 20), any drive away fees, and the residual.

If they respond with a nice offer, I go in and we are done, in not, on to the next dealer. The important thing is not to go in until you have something concerete in writing, dont waste your time at dealerships. You can use Cars.com or Edmunds to get quotes multiple quotes.

Good luck.

PS- I already have a 2007 and was just poking my nose to see if I could get a good deal with a 2008. Didnt get exactly what I wanted so I'll wait until the lease runs out and get a 2010 or 2009 (with the better engine

)

rogerbalser · October 2008

I just received a quote on a base xc 70 with the x-plan for a 36 month 15K lease 787 due on delivery with a monthly of $407. Is this a goo deal I am in Ohio

vancouver83 · October 2008

So let me begin by saying that I am no expert. Just a consumer.

I just had my 2007 XC70 in for a service appointment and got a 2008 XC70 as a loaner. Eventhough the 2008 has more horsepower (235) on paper, I found it underpowered and sluggish compared to the 2007 (208 hp). I also wasn't crazy about the look inside. If I decide to turn in my car and lease a new one, I would get one of the 2009's with the V6 3.0 l engine that has 281 hp.

That being said, if you really want to get the car and its the 2008, you should at least get the premium package and climate package (possibly something else thrown in) and convenience package at that price. Its a bit of tough negotiating but unfortunately times are tough and 2008 Volvo XC70's are not flying off the stores.

Check the dealer inventory and see how many they have and what comes with those cars, then choose one and negotiate on that one (preferrably using email). You live in Ohio but times are tough, I bet a dealer a few hours away from you would still love to sell you a car. Don't let yourself be limited by the local dealer, you can always service it there. Also, the local dealer might try to not lose your business and therefore may give a better deal.

Also, the X-plan (I also tried it), VIP, etc. are all marketing gimmicks. Just email them and say I dont want to know what plan you are using, etc. Just give me your best price.

One last thing, unless you havev your heart set on the XC70, also checkout the passat wagon, Subaru Outback, and I really like Mazda CX-9s. All three have a better ride that the new volvos.

Sorry for the long answer. Again, I am just a consumer not a professional and these are just my opinions.

qbrozen · October 2008

Eventhough the 2008 has more horsepower (235) on paper, I found it underpowered and sluggish compared to the 2007 (208 hp).

I'm not surprised.
Its 400 lbs heavier and has the same torque as yours. And your torque peaks 1700 rpms sooner, to boot. OH, AND the new one gets worse gas mileage!
So much for advancing the model.

vancouver83 · October 2008

Yeah, even the sales guy was upset. He said they all agreed that it was underpowered and that Volvo wasn't making it easy for them to sell new Volvos (not too many deals).

I'll probably keep mine or weight until the 2009's go on sale (with the better power). But still, I dont really like the look of the new XC70's.

I also heard that SAAB is completely redesigning their cars, maybe their new wagon (due in 2009 or 2010) will be nice. Who knows.

qbrozen · October 2008

Personally, I don't think more power is the answer. All manufacturers need to improve their fleet's fuel mileage. The only way to do this and not produce slow pigs is to reduce weight. So THAT'S what volvo needs to focus on. Their cars (like many manufacturers) have just continued to get heavier over the years.

vancouver83 · October 2008

Agree. All cars can be made more fuel efficient. I also dont see why there is a concerted effort to make ALL makes hybrids (hybrid tech has been around for a long time).

anon3 · November 2008

"Eventhough the 2008 has more horsepower (235) on paper, I found it underpowered and sluggish compared to the 2007 (208 hp)."

My wife loves the 2008 XC70 for the ride quality, but it is an extremely inefficient vehicle. We're lucky to get 20 mpg. The engine is harsh. The transmission is unresponsive. The vehicle is heavy and so slow that it's almost dangerous to merge into fast moving highway traffic.

Contrast that with my 2008 BMW 535xi wagon with 300hp six cylinder engine that goes 0 - 60 in 5.4 seconds and averages 26 mpg on the highway.

Volvo is no BMW, but surely they can invest in an efficient engine and shave a couple hundred pounds off the vehicle. The XC70 is a safe, comfortable pig of a vehicle.

Several manufacturers, including Volvo, are turning to twin sequential turbo chargers to improve performance efficiently. Unfortunately, we'll pay more than $2,000 extra for a 2009 turbo XC70 T6 just to get barely adequate performance and mediocre fuel efficiency.

srmd22 · November 2008

I think this may be an ok lease deal, but compared to the deal I got on my acura MDX a year ago it sort of sux. I guess RV's are way up now, with the credit crunch. Anyway, I want to get a new 2009 XC70 with most of the bells and whistles, no turbo. We are on the A plan, and the invoice is roughly 42.5K. There is an invoice rebate of over 5K, and our trade in value is 6K, plus they are giving us 2K loyalty incentive on the trade in (2004 S60). I know that sounds like a helluva lot of incentives.
The RV is 19k. I don't know the money factor. There were a couple of more incentive thrown in.
--Overall the price was $36,450 after incentives, not including the trade in.
--The trade in went to fees and up front costs plus first month payment, a total of $1500, and the rest toward reducing the monthly payments.
--The monthly fee ends up at 496.68 including tax.

Is this an ok deal? I ask because my 46K acura with a 6K trade in and no other incentives costs me $515/month, way less. I don't remember the #'s, but I suspect the RV was much higher. Are the lease prices actually higher now, because of the credit situation?

Thanks
SR

vancouver83 · November 2008

Have you test driven the turbo and compared it to the base? I strongly suggest you give it a go, the base is way underpowered and you are just not going to be happy with the performance.

As for the deal, I am no expert but I always thought that incentives were just "flash" to get you in. Basically, you have to ask them what is the lowest they can do for you given every factor. After that, go to another dealer and see whats "their best." Of course, I recommend doing this all via email (maybe a call).

Anyway, the residuals have come down which means that you pay more. Also, I don't think you are getting a fantastic interest rate but you can find that out for yourself.

The other thing is not to tie yourself down to one car, I like my Volvo but for example the Mazda cx-9 is rated better on many levels and without any incentives their price beats what you are quoting for the XC70. They need you, you dont need them, I think you can shave some more off. Whats the worse that can happen, you go back and they give you the same deal.

Again, this is just my opinion, whatever decision you make will be the right one for you.

archielevick · December 2008

Does anyone have December lease numbers..residual and MF for the XC70?

CarMan@Edmunds · December 2008

Hi archielevick. Volvo Finance's lease program for the XC70 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.

According to the latest information that I have seen, if you were to lease a 2009 Volvo XC70 through Volvo Finance for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value would be .00204 and 48%, respectively.

When negotiating your lease on this vehicle, make sure to take the $750 holiday bonus cash that Volvo is providing on it into account.

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crestonave · December 2008

Hi Car Man:

Would you be able to post lease numbers for the XC90 over on that message board? I'm interested in either a 2008 or 2009 XC90, either 12k or 15k mi/yr for 36 or 39 months. I know there's a Costco incentive currently but I'm wondering if there are larger incentives for third party leases vs Volvo Finance. Thanks!

dpeck1 · February 2009

Looking to lease an xc70 T6 with back-up camera and trailer hitch. What are the current customer incentives and dealer cash and holdback? Carman, do you know the current residual and money factor? The MSRP is 46K ? Thanks.

luisja2000 · February 2009

I´ve owned this car for 14 months and my recommendation is stay away from it. See consumers reports, reliability is horrible. Everyday is a different thing, wait a couple years until Volvo puts things together if they do not go out of business before.
I like the car inside out but it has so many electronic, ratles and transmision issues that unless you are a masochist there is no reason to get this car, plus the resale value is as bad as Chrysler or Ford.
I have a lease and I can't wait to return the car and get something more reliable.

dpeck1 · February 2009

What year did you lease? What engine did you get, 3.2 or T6?

luisja2000 · February 2009

This is a 2008, 3.2. I have 10 more months and I will get something more reliable. Look for something different. Good luck.

CarMan@Edmunds · March 2009

Hi dpeck1. Volvo recently enhanced its dealer cash incentive on the 2009 XC70 to $2,000. Its lease program 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 XC70 T6 with 15,000 miles per year are an unattractive .00347 and 48%, respectively. Its money factor for the '09 XC70 3.2 are a slightly more attractive .00242, but its residual value is lower at 44% and its lease cash is only $1,553.

This lease program is scheduled to run through the end of March, but it would not surprise me in the least if Volvo was to make an unscheduled revision to it.

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Volvo XC70 Lease Questions

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