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Comments
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
This is the car I intend to lease
Volvo XC60 3.2 FWD 48months w/12,000 per yr, zero down,
with the options we selected the MSR $32,395 -TMV $31,233
What would you calculate as the pre-tax monthly payment? Do you need a list of the options I selected to calculate this.
Would you please confirm that the March lease incentives for a 36 month, 15K miles per year are still MF .00112 and 47% Residual?
And also, that 12K miles would result in 48% residual, and 10K miles would result in 49% residual?
As always, thanks Car_Man!
The money factor on the 2010 XC-60 T-6 went down to .00094 for 36 months. The residual remains at 47% for 36 months and 15K miles per year. For 36 months and 12K miles per year, the residual would be 49%. For 36 months and 10K miles per year, the residual would be 50%.
Dealer is stating xc60T 36mo is .00124
autoboy19 is stating xc60T 36mo is .00094
I like autoboy19's number better
Dealer just corrected himself and said that the money factor is indeed .00094 for March
BUT
That residual for 15k was 47%, 12k was 48% and 10k was 49%. I still don't trust them so if anyone con confirm these I would appreciated it.
New to the forum but could really use your expertise. i see you posted the numbers for xc60 T6 for 36 months. Do you have the figures for 48/60 months leases with 10k miles per year. Would you recommmend anything more than 36 months? :confuse:
Thanks!
The lease rates for an XC-60 T-6 AWD with 10K miles per year for 48 months are .00144 and 41%. The corresponding values for 60 months are .00159 and 34%. Those residual values assume an adjustment of plus 3% on the residual values compared with 15K miles per year. This used to be the standard adjustment used on U.S. Bank leases, but this may have changed since December when U.S. Bank became the proprietary leasing source for Volvo vehicles. I heard the current adjustment could be only plus 2%, in which case the values I quoted you should each be 1% lower.
In many cases, 36 or (33-39) month leases tend to be the best. The main problem with going 36 months or longer is that most new car warranties don't last that long. (With the exception of some premium brands). Also, most 48 month and longer terms have rather high interest rates and low residuals. However, in the case of Volvo, their current warranty last 5 years, and their money factors for 48 and 60 months are fairly low, even if the residual values are also low. In fact, the lease rates are roughly on par with the 3.49% finance rate that is available for 72 months. Because of this, leasing one of these vehicles for 48 or 60 months could be a good decision.
Residual for 36 months 46% 10,000 miles per year.
Residual for 48 months 37% 10,000 miles per year.
Money Factor for 36 months 0.00107
Money Factor for 48 months 0.00164
Edited to include that this is for a 2010 with addition of Premium and Multi-media packages, plus Metallic paint.
Those residuals are correct, but the 36 month money factor should be .00077 and the 48 month money factor should be .00134 on an XC-60 3.2 FWD.
Car_man
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Car_man
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thank you for your suggestions.
danijela
The residual on the 90 was $30K and the cap\buy price on the 60 was $38K. VERY easy decision in my opinion.
Any word on what it is for April? 36 and 48?
For the month of April, U.S. Bank's base lease rate on a 2010 Volvo XC-60 T-6 for 36 months is .00094. The lease rate for this same vehicle for 48 months is .00143.
Residual for 48 months 37% 10,000 miles per year. "
Still the same, as stephlite noted on Mar 24, 2010 quoted from Rusnak in Pasadena? I assume this changes depending on what packages the car has?
Yes, the residuals did stay the same from March on all XC-60 trims. The 36 month and 48 month residuals with 10k miles per year on an XC-60 3.2 FWD are still 46% and 37%. These same numbers for a 2010 XC-60 T-6 are actually 49% and 40% respectively. The residuals do not change based on packages or options.
Is it an XC-60 T-6? If so, it most likely means that it is an older unit. When Volvo first launched the XC-60 about a year ago, the XC-60 T6 was the only available trim. At launch, Volvo included a no charge panoramic moonroof. When the XC-60 3.2 trim was launched in late summer last year, this free moonroof went away and became a $600 option. The easiest way to be sure is to look at the window sticker or have the dealer show you the invoice. If there is no $600 dollar option for the sunroof listed, it is one of these launch units, meaning it likely landed on the dealer's lot between April and August of 2009. The only thing to be concerned about is how many miles it has. A lot of miles may indicate that it was used as a demo. However, it is also possible that it has almost no miles on it, just that it has been on the lot for some time. Find this out before you you agree to anything. The plus side is that the vehicle is $600 cheaper than a comparable one coming to the lot right now, and the longer time in inventory should warrant a higher discount.
2010 XC60 3.2 AWD
10,000 miles
5 year lease
MF = .00165
Resid = .29
MSRP = 39,545
selling = 38,045
dwn pmt = $2,500
pmt = $560/month
any thoughts appreciated. thx
Is that the pre-tax payment? The selling price looks pretty good, about $800 over invoice. Depending on competition, you might be able to go a couple hundred bucks lower. Also, the money factor is right in line with the base rate. Are you a current Volvo owner? If so, your selling price should be $500 lower. The only thing that concerns me is the amount due at signing. Do you have a break down of what that includes? It is generally not advised to put cap cost reduction up front. Your out of pocket expenses should be acquisition fee of $695, plus first payment, plus any dealer and registration fees. This seems like it should total around $1600 or so.
sfr102@gmail.com
Our xc60 is a base model, no gadgets whatsoever, black on black cloth.
The last time that I checked, US Banks's buy rate lease money factor for the 2010 XC60 3.2 AWD was .00092. That's equivalent to an interest rate of around 2.2%. It appears as though in addition to marking up your vehicle's acquisition fee, the dealer is trying to mark up its money factor as well.
It wouldn't hurt to comparison shop a little if there are any other Volvo dealers in your area.
Car_man
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Do you have the latest MF and % of residual of 36 months and 12,000miles/yr lease on XC60 and XC90?
thanks
Which XC-90 are you looking for? R-design, AWD, V8 and for how long?
The XC-60 are as follows:
XC-60 3.2 FWD 36 month residual 43%, money factor .00088
60 month residual 27%, money factor .00176
XC-60 3.2 AWD 36 month residual 44%, money factor .00092
60 month residual 27%, money factor .00165
XC-60 T-6 AWD 36 month residual 46%, money factor .00102
60 month residual 29%, money factor .00169
XC-60 T-6 R-design 36 month residual 45%, money factor .00078
60 month residual 28%, money factor .00146
Also, base acquisition fee is $695.
Putting money down as cap cost reduction (CCR) does not change the residual. It is also taxed at you local tax rate, and this tax is due up front, not rolled into the monthly payment like the use tax. As a result, it is not recommended to put CCR down on a lease if you can afford the payments without it. Ideally, what you want to pay at signing is 1st payment, dealer fees, title fees, acquisition fee, security deposit ( if there is one), and up front taxes.
As for the deal, one concern I have is with the Gross Capitalized Cost. The difference between the Gross Capitalized Cost and Selling Price is $895. This difference is likely the Acquisition Fee. However, the dealer is marking this fee up by $100 or $200 depending on credit. The base Acquisition Fee is $695 or $795 depending on credit.
A second concern I have is with the Cap Cost Reduction. I want to make sure that this is indeed Cap Cost Reduction and not simply the amount due at signing. If it is indeed Cap Cost Reduction, than this is not a good deal, as there are taking very little off the price of the car. If it is amount due at signing, than it is an okay deal.
In terms of the deal presented, based on my quick calculations, it seems this vehicle should have Climate Package, Panorama Sunroof, Convenience Package, and Child Booster seats, for an MSRP of 41,750. The invoice on this vehicle is $39,596. A better approach would be to say they want no Cap Cost Reduction, with a Gross Capitalized Cost of $40,096, ($500) over invoice. The out of pocket expenses would then be First Month's Payment, Acquistion Fee, Dealer Fees, Upfront Tax and Title.
Under this scenario, the monthly payment is roughly $606, not including tax. The only out of pocket expenses would be the monthly payment, plus above listed fees, with no Cap Cost Reduction.
Salesman says buyers are getting the car for $39046 (on the line titled Gross Capitalized Cost, it says the agreed upon value of the car is $39046) --and that discount from sticker is alleged to be the Costco Member Price -- plus an $895 Acquisition Fee = $39941 Total Gross Capitalization Cost.
However, then the $2540.72 CCR is deducted from the GCC of $39941 to yield an Adjusted Capitalized Cost of $37400.28, the amount to actually be used in calculating buyer's base monthly payment.
So, is it still the case that almost all the alleged discount is being paid back in the form of a $2540.72 Capitalized Cost Reduction (which was not broken down in the verbal exchange, but rather bundled into "to cover all the closing costs, first payment, and charges and to to initiate loan with U.S. Bank, U.S. Bank requires you pay $4000 due at signing")?
The Residual (after 36 months) is listed as $20,040
That is correct. What you should say is you want Costco price with no Cap Cost Reduction. You should only pay upfronts at signing, which should be in the $1,500 range. Also, the Acquistion fee should be $695, the dealer is marking it up $200.
However, then the $2540.72 CCR is deducted from the GCC of $39941 to yield an Adjusted Capitalized Cost of $37400.28, the amount to actually be used in calculating buyer's base monthly payment.
So, is it still the case that almost all the alleged discount is being paid back in the form of a $2540.72 Capitalized Cost Reduction (which was not broken down in the verbal exchange, but rather bundled into "to cover all the closing costs, first payment, and charges and to to initiate loan with U.S. Bank, U.S. Bank requires you pay $4000 due at signing")?
One, while a capitalized cost reduction reduces the amount financed on a lease, and in turn the monthly payment, it has absolutely no impact upon a leased vehicle's end-of-term purchase option price. The residual value for a vehicle is exactly the same, regardless of whether one put $5,000 down or nothing down.
Two, consumers who make large down payments on leases risk losing part or all of the money that they put down if their vehicle is totaled in an accident or stolen and never recovered.
Car_man
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Car_man
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Prices Paid: Buying & Leasing Experiences Forum