2015.5 Volvo S60 Lease question

Michaell

salter5 said:

Hi All:

I’m looking at a few different S60’s -- I’m not really wedded to either. One dealership seemed to be on it a lot more than another, so I think I’m going with them.

2015.5 S60 T5 Fwd Premier, blis, keyless drive
silver/black leather
36 months 15k/yr
$2875.99 Drive Off
$325 + tax=$354
Res:$22,229.20
Money Factor: .00001

(I’m awaiting clarification on the sales price).

and:

2015.5 S60 T5 Fwd, premier, blis, keyless drive
grey/black leather
and in addition: climate, 19” sport wheels, sports seats.

36 months 15k/yr
$2875.99 Total Drive Off
$336 + tax=$366
Res:$23,674.00
Money Factor:.00001
Offer includes Conquest and Wheels pkg Rebates.
Msrp:$42275
Sales Price:$38000 plus conquest and wheel rebates.

Note: in one instance they told me “offer includes rebates” and in the other “plus...rebates” so I’m going to get some clarification there.

What do you all think?

Also some places like Consumer Reports suggests no money down on a least (I wasn’t sure if that meant drive off), but shouldn’t the drive off sum be factored over the 36 month period? And isn’t it just a way to make the monthly rate go up or down?

I would ask for a detailed breakdown of the cash due at signing for both offers. And yes, clarification of the language surrounding the rebates is an excellent idea.

aminoacid91

Hello,
I've been in contact with a couple of dealerships. (There aren't many out there!) in different CA areas.

I'm looking for the numbers for a base S60 T6 FWD. 36/12.
I posted above, but I think I mistook the T6 base with premier.

Thanks!

Michaell

aminoacid91 said:

Hello,
I've been in contact with a couple of dealerships. (There aren't many out there!) in different CA areas.

I'm looking for the numbers for a base S60 T6 FWD. 36/12.
I posted above, but I think I mistook the T6 base with premier.

Thanks!

.00001 and 58%. $1250 lease cash.

royavell

Shopping for a S60 T5 AWD in Massachusetts. I am looking for the numbers for a 36/12 lease.

the MSRPs for what I am seeing here with the packages I like are around 45K.
MF here is .0001
Looking for what residual I should be aiming for. Is 59% realistic?
Is a monthly lease payment of $425 with zero down possible?

kyfdx

royavell said:

Shopping for a S60 T5 AWD in Massachusetts. I am looking for the numbers for a 36/12 lease.

the MSRPs for what I am seeing here with the packages I like are around 45K.
MF here is .0001
Looking for what residual I should be aiming for. Is 59% realistic?
Is a monthly lease payment of $425 with zero down possible?

The MF is .00001, not .0001. Residual is either 56% or 58% depending on trim. You can't really aim for it, as it's fixed by the bank. $1250 lease cash on all 2015.5 S60 models.

You might come close to $425/mo, depending on selling price and tax rate.

salter5

Michaell said:

salter5 said:

Michaell said:

jpp5862 said:

kyfdx said:

jpp5862 said:

Michaell/kydfx I looked at a T5 FWD S60 Platinum yesterday, they quoted me a 52% residual which seemed a bit low for 39 months and 15,000 miles. This is in NC, can you let me know if that's in line? They had the .00001 money factor but I was expecting a higher residual.

Thanks!

That's correct for Base or Platinum. The Premier model is 2% higher.

Also, $1250 lease cash.

Great, thanks for confirming. Here's their deal:

MSRP 43,295
Cap Cost $41,109 (They sold at invoice, gave me a $2,500 rebate which include conquest cash for being an Infiniti owner), added in the $399 doc fee, $999 Acquisition fee, and about $100 of taxes and govt fees. They've come up with a payment of $484, nothing due at signing. I can't quite get to their Net Cap Cost number though, so need to talk to them about that.

Thanks!

Volvo acquisition fee is $695 - not sure if the dealer is allowed to mark that up or not.

Ask them to break down the math involved in getting to their net cap cost, including the lease cash and rebates.

Two dealers I’ve been to have both cited an acquisition fee of $995 and both claimed that Volvo Financial sets this fee (or at least they implied it -- one said “this fee is up to Volvo Financial").

If you are getting a healthy discount from sticker, then the $300 markup on the acquisition fee can be forgiven ... if you're comfortable with it.

That's my thinking as well.

salter5

Michaell said:

salter5 said:

Hi All:

I’m looking at a few different S60’s -- I’m not really wedded to either. One dealership seemed to be on it a lot more than another, so I think I’m going with them.

2015.5 S60 T5 Fwd Premier, blis, keyless drive
silver/black leather
36 months 15k/yr
$2875.99 Drive Off
$325 + tax=$354
Res:$22,229.20
Money Factor: .00001

(I’m awaiting clarification on the sales price).

and:

2015.5 S60 T5 Fwd, premier, blis, keyless drive
grey/black leather
and in addition: climate, 19” sport wheels, sports seats.

36 months 15k/yr
$2875.99 Total Drive Off
$336 + tax=$366
Res:$23,674.00
Money Factor:.00001
Offer includes Conquest and Wheels pkg Rebates.
Msrp:$42275
Sales Price:$38000 plus conquest and wheel rebates.

Note: in one instance they told me “offer includes rebates” and in the other “plus...rebates” so I’m going to get some clarification there.

What do you all think?

Also some places like Consumer Reports suggests no money down on a least (I wasn’t sure if that meant drive off), but shouldn’t the drive off sum be factored over the 36 month period? And isn’t it just a way to make the monthly rate go up or down?

I would ask for a detailed breakdown of the cash due at signing for both offers. And yes, clarification of the language surrounding the rebates is an excellent idea.

I sought and received clarification of the language surrounding the rebates: Offer includes the Conquest and Wheel pkg rebates. I wasn't too interested in the wheels and they said I could switch out for smaller wheels but that I wouldn't get a credit for that. Since the rebate and wheel sizes were subsidized by Volvo Corporate and there was a little (if any) incentive to put them on another car. I didn't argue that point, because the 19" wheels are growing on me.

But I did get clarification on the numbers. If some kind soul could explain to me some of the finer points, and let me know, in general, if they think this is a "good deal" I'd appreciate it. If esp. there's a question (or questions) that I should ask that I'm not asking or wouldn't think to ask:

2015.5 S60 T5 Fwd, premier, blis, keyless drive grey/black leather
climate, 19” sport wheels, sports seats.

36 months 15k/yr
Msrp: $42,275
Cash price: $38,000
Residual (56%) $23,674

CAP reduction: $1,823.00
Rebate: $1,500.00
ADJ Cap Cuost" $35,7521
Total Cap reduction: $3,323

Amount due at start:
First monthly pymt $366.32
License Fee $349.00
CA Tire Fee $8.75
EFF Fee $29.00
Cap Reduction Tax $299.14

Total Inception Fees: 1,052.21
+ Cust Cash as Cap Reduciton: $1,823.78
+ Rebate as Cap Reduction: $1,500.00

Total Drive Off: $4,375.99

Credits disbursed as:
--Cust cash as Drive off: $1052.21
--Cust Cash as Cap Reduction: $1823.78
--Rebate as Cap Reduction: $1500.00

Money Factor: 0.00001

Two confusing things:

I was told:

total drive off is $2875.99
Monthly Payment is: $366+tax but monthly seems to be listed as $366.62 on "Quote Worksheet - Lease" print out.

How is the sales men listing total drive off as $2875.99 when Total drive off is listed as $4375.99?

Just I assume taking the "Rebate as Cap Reduction" (above) for $1500 and subtracting from $4375.99? Which gives me the $2875.99?

I'm not exactly sure what rebates I am getting. In addition, I have a BMW so I'm supposed to get (I think) $750 for that. I'm not sure if that's a further $750 or if that is included in $1500.

I suppose I will ask for an itemization of all rebates so I can double check.

At any rate, apologies for this long post, but I'm not entirely sure how to vet all this information and if there's some way I should check through it (via an edmunds app or elsewhere) to do my due diligence and make sure I'm not paying more than I should. I also don't see the "Dealer Acquisition fee of $995" on here.

Thoughts? Comments? Suggestions? Much appreciated!

With Thanks,

Salter.

PS. Also it has the climate package -- BUt I don't know what the Conquest rebate is? How much is it? And how much is the Wheel rebate? Is there a source to check for this things.

Michaell

salter5 said:

Michaell said:

salter5 said:

Hi All:

I’m looking at a few different S60’s -- I’m not really wedded to either. One dealership seemed to be on it a lot more than another, so I think I’m going with them.

2015.5 S60 T5 Fwd Premier, blis, keyless drive
silver/black leather
36 months 15k/yr
$2875.99 Drive Off
$325 + tax=$354
Res:$22,229.20
Money Factor: .00001

(I’m awaiting clarification on the sales price).

and:

2015.5 S60 T5 Fwd, premier, blis, keyless drive
grey/black leather
and in addition: climate, 19” sport wheels, sports seats.

36 months 15k/yr
$2875.99 Total Drive Off
$336 + tax=$366
Res:$23,674.00
Money Factor:.00001
Offer includes Conquest and Wheels pkg Rebates.
Msrp:$42275
Sales Price:$38000 plus conquest and wheel rebates.

Note: in one instance they told me “offer includes rebates” and in the other “plus...rebates” so I’m going to get some clarification there.

What do you all think?

Also some places like Consumer Reports suggests no money down on a least (I wasn’t sure if that meant drive off), but shouldn’t the drive off sum be factored over the 36 month period? And isn’t it just a way to make the monthly rate go up or down?

I would ask for a detailed breakdown of the cash due at signing for both offers. And yes, clarification of the language surrounding the rebates is an excellent idea.

I sought and received clarification of the language surrounding the rebates: Offer includes the Conquest and Wheel pkg rebates. I wasn't too interested in the wheels and they said I could switch out for smaller wheels but that I wouldn't get a credit for that. Since the rebate and wheel sizes were subsidized by Volvo Corporate and there was a little (if any) incentive to put them on another car. I didn't argue that point, because the 19" wheels are growing on me.

But I did get clarification on the numbers. If some kind soul could explain to me some of the finer points, and let me know, in general, if they think this is a "good deal" I'd appreciate it. If esp. there's a question (or questions) that I should ask that I'm not asking or wouldn't think to ask:

2015.5 S60 T5 Fwd, premier, blis, keyless drive grey/black leather
climate, 19” sport wheels, sports seats.

36 months 15k/yr
Msrp: $42,275
Cash price: $38,000
Residual (56%) $23,674

CAP reduction: $1,823.00
Rebate: $1,500.00
ADJ Cap Cuost" $35,7521
Total Cap reduction: $3,323

Amount due at start:
First monthly pymt $366.32
License Fee $349.00
CA Tire Fee $8.75
EFF Fee $29.00
Cap Reduction Tax $299.14

Total Inception Fees: 1,052.21
+ Cust Cash as Cap Reduciton: $1,823.78
+ Rebate as Cap Reduction: $1,500.00

Total Drive Off: $4,375.99

Credits disbursed as:
--Cust cash as Drive off: $1052.21
--Cust Cash as Cap Reduction: $1823.78
--Rebate as Cap Reduction: $1500.00

Money Factor: 0.00001

Two confusing things:

I was told:

total drive off is $2875.99
Monthly Payment is: $366+tax but monthly seems to be listed as $366.62 on "Quote Worksheet - Lease" print out.

How is the sales men listing total drive off as $2875.99 when Total drive off is listed as $4375.99?

Just I assume taking the "Rebate as Cap Reduction" (above) for $1500 and subtracting from $4375.99? Which gives me the $2875.99?

I'm not exactly sure what rebates I am getting. In addition, I have a BMW so I'm supposed to get (I think) $750 for that. I'm not sure if that's a further $750 or if that is included in $1500.

I suppose I will ask for an itemization of all rebates so I can double check.

At any rate, apologies for this long post, but I'm not entirely sure how to vet all this information and if there's some way I should check through it (via an edmunds app or elsewhere) to do my due diligence and make sure I'm not paying more than I should. I also don't see the "Dealer Acquisition fee of $995" on here.

Thoughts? Comments? Suggestions? Much appreciated!

With Thanks,

Salter.

PS. Also it has the climate package -- BUt I don't know what the Conquest rebate is? How much is it? And how much is the Wheel rebate? Is there a source to check for this things.

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

salter5

Michaell said:

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

Thanks Michael. A couple of questions: A) Is there any argument (besides reducing your monthly payment) for making a down payment (isn't part of the down the taxes and fees and whatnot, which have to be paid upfront? and isn't the reason for GAP insurance to cover one in the event of a car being totaled or stolen?

Reading more on the resources available here in

Also noticed that while my proposed vehicles Sale Price is 38K, the Edmunds TMV appears to be (if my calculations are correct) $38,595.00 and the dealer invoice is $40,060 -- how can they afford to go down to $38K then? Volvo rebates to the dealer which they may or may not pass onto the consumer?

Please let me know, too, if I'm intruding on this thread and going too far off-topic and I'll summarize all of this on a separate, new thread! Hope I haven't jumped in here too much.

Thanks again!

Salter

Michaell

salter5 said:

Michaell said:

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

Thanks Michael. A couple of questions: A) Is there any argument (besides reducing your monthly payment) for making a down payment (isn't part of the down the taxes and fees and whatnot, which have to be paid upfront? and isn't the reason for GAP insurance to cover one in the event of a car being totaled or stolen?

Reading more on the resources available here in

Also noticed that while my proposed vehicles Sale Price is 38K, the Edmunds TMV appears to be (if my calculations are correct) $38,595.00 and the dealer invoice is $40,060 -- how can they afford to go down to $38K then? Volvo rebates to the dealer which they may or may not pass onto the consumer?

Please let me know, too, if I'm intruding on this thread and going too far off-topic and I'll summarize all of this on a separate, new thread! Hope I haven't jumped in here too much.

Thanks again!

Salter

These are all valid questions ...

1. No - the only reason to do a down payment is to lower your monthly payment. The total cash outlay for the lease stays the same, just the calculus is different.
2. GAP insurance does pay the difference between the current value and the payoff - but the payoff is reduced by $x that you put down. Hence, the money you put down is not returned to you.
3. Sale price can be below the published invoice value for many reasons, one of which are factory to dealer incentives that we may never know about.

salter5

Michaell said:

salter5 said:

Michaell said:

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

Thanks Michael. A couple of questions: A) Is there any argument (besides reducing your monthly payment) for making a down payment (isn't part of the down the taxes and fees and whatnot, which have to be paid upfront? and isn't the reason for GAP insurance to cover one in the event of a car being totaled or stolen?

Reading more on the resources available here in

Also noticed that while my proposed vehicles Sale Price is 38K, the Edmunds TMV appears to be (if my calculations are correct) $38,595.00 and the dealer invoice is $40,060 -- how can they afford to go down to $38K then? Volvo rebates to the dealer which they may or may not pass onto the consumer?

Please let me know, too, if I'm intruding on this thread and going too far off-topic and I'll summarize all of this on a separate, new thread! Hope I haven't jumped in here too much.

Thanks again!

Salter

These are all valid questions ...

1. No - the only reason to do a down payment is to lower your monthly payment. The total cash outlay for the lease stays the same, just the calculus is different.
2. GAP insurance does pay the difference between the current value and the payoff - but the payoff is reduced by $x that you put down. Hence, the money you put down is not returned to you.
3. Sale price can be below the published invoice value for many reasons, one of which are factory to dealer incentives that we may never know about.

Thanks Michael:

On the general Volvo forum here I posted a few questions on Volvo Financial that I had. But I just noticed that Volvo Financial includes the GAP Waiver at not add’l cost (at least that I can see ) But I understand, then, that even with this GAP Waiver from Volvo, if for the first few months of the leasing of the car, should it be totaled that I’d be out that money then? In my case, were I to use the customer cash (they’re asking for $1825 approx) that would represent about 6 months of payments. I’m sort of inclined to see if they wouldn’t just raise my monthly by $50 then (which would represent that figure divided by 36 months). Which wouldn’t be stretch for me.

If my assumption is right (I’m calling Volvo Financial tomorrow to see if they’ll send me the language of the GAP Waiver program since they lack specific language on their site) this might be the right move.

Michaell

salter5 said:

Michaell said:

salter5 said:

Michaell said:

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

Thanks Michael. A couple of questions: A) Is there any argument (besides reducing your monthly payment) for making a down payment (isn't part of the down the taxes and fees and whatnot, which have to be paid upfront? and isn't the reason for GAP insurance to cover one in the event of a car being totaled or stolen?

Reading more on the resources available here in

Also noticed that while my proposed vehicles Sale Price is 38K, the Edmunds TMV appears to be (if my calculations are correct) $38,595.00 and the dealer invoice is $40,060 -- how can they afford to go down to $38K then? Volvo rebates to the dealer which they may or may not pass onto the consumer?

Please let me know, too, if I'm intruding on this thread and going too far off-topic and I'll summarize all of this on a separate, new thread! Hope I haven't jumped in here too much.

Thanks again!

Salter

These are all valid questions ...

1. No - the only reason to do a down payment is to lower your monthly payment. The total cash outlay for the lease stays the same, just the calculus is different.
2. GAP insurance does pay the difference between the current value and the payoff - but the payoff is reduced by $x that you put down. Hence, the money you put down is not returned to you.
3. Sale price can be below the published invoice value for many reasons, one of which are factory to dealer incentives that we may never know about.

Thanks Michael:

On the general Volvo forum here I posted a few questions on Volvo Financial that I had. But I just noticed that Volvo Financial includes the GAP Waiver at not add’l cost (at least that I can see ) But I understand, then, that even with this GAP Waiver from Volvo, if for the first few months of the leasing of the car, should it be totaled that I’d be out that money then? In my case, were I to use the customer cash (they’re asking for $1825 approx) that would represent about 6 months of payments. I’m sort of inclined to see if they wouldn’t just raise my monthly by $50 then (which would represent that figure divided by 36 months). Which wouldn’t be stretch for me.

If my assumption is right (I’m calling Volvo Financial tomorrow to see if they’ll send me the language of the GAP Waiver program since they lack specific language on their site) this might be the right move.

You're thinking of taking the customer cash as a rebate back to you? That's certainly an option, though admittedly one I don't see very often. Actually, never.

salter5

Michaell said:

salter5 said:

Michaell said:

salter5 said:

Michaell said:

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

Thanks Michael. A couple of questions: A) Is there any argument (besides reducing your monthly payment) for making a down payment (isn't part of the down the taxes and fees and whatnot, which have to be paid upfront? and isn't the reason for GAP insurance to cover one in the event of a car being totaled or stolen?

Reading more on the resources available here in

Also noticed that while my proposed vehicles Sale Price is 38K, the Edmunds TMV appears to be (if my calculations are correct) $38,595.00 and the dealer invoice is $40,060 -- how can they afford to go down to $38K then? Volvo rebates to the dealer which they may or may not pass onto the consumer?

Please let me know, too, if I'm intruding on this thread and going too far off-topic and I'll summarize all of this on a separate, new thread! Hope I haven't jumped in here too much.

Thanks again!

Salter

These are all valid questions ...

1. No - the only reason to do a down payment is to lower your monthly payment. The total cash outlay for the lease stays the same, just the calculus is different.
2. GAP insurance does pay the difference between the current value and the payoff - but the payoff is reduced by $x that you put down. Hence, the money you put down is not returned to you.
3. Sale price can be below the published invoice value for many reasons, one of which are factory to dealer incentives that we may never know about.

Thanks Michael:

On the general Volvo forum here I posted a few questions on Volvo Financial that I had. But I just noticed that Volvo Financial includes the GAP Waiver at not add’l cost (at least that I can see ) But I understand, then, that even with this GAP Waiver from Volvo, if for the first few months of the leasing of the car, should it be totaled that I’d be out that money then? In my case, were I to use the customer cash (they’re asking for $1825 approx) that would represent about 6 months of payments. I’m sort of inclined to see if they wouldn’t just raise my monthly by $50 then (which would represent that figure divided by 36 months). Which wouldn’t be stretch for me.

If my assumption is right (I’m calling Volvo Financial tomorrow to see if they’ll send me the language of the GAP Waiver program since they lack specific language on their site) this might be the right move.

You're thinking of taking the customer cash as a rebate back to you? That's certainly an option, though admittedly one I don't see very often. Actually, never.

Thanks Michael.

I’ve heard mention this "$1250 lease cash” but I’m either misunderstanding it or my dealer says it doesn’t exist. It appears to be a rebate or incentive from Volvo to the dealer. I suppose it may or may not be “passed along” to the buyer.

http://www.edmunds.com/volvo/s60/2015/car-incentives.html

Under T5 Drive-E Sedan (2.0L 4-cyl. Turbo 8-speed Automatic):

I see Loyality ($1000) if you own a Volvo or Saab previous. Conquest ($750) if you own among others a BMW, Mercedes, etc.

and then under Marketing Support:

Dealer Cash Dealer Cash
Requirements and Restrictions:
Volvo Allowance is available towards leasing or retail purchases. Please note that dealer cash is payable to the dealer and not the consumer. Accordingly, dealer cash incentives are taken into consideration when Edmunds determines the True Market Value® of a vehicle, as well as by the dealer when it sets its Edmunds.com Price Promise® offer. These incentives for the dealer are applied independently of any customer incentives the manufacturer may be offering directly to the consumer.
Dealer Cash Start End
$1,250 02/03/2015 03/31/2015

So this $1250 isn’t necessarily applied directly against the price of the car? I suppose it can be buried or somehow show up on a copy of the lease. Or not? I’m not sure I’m getting it or not. I guess fair play to the dealer if it’s what Volvo is giving to them as perhaps this is one way they make a buck (besides F&I) these days when the “invoice” price and TMV is so well-known.

Just wondering how this "$1250 lease cash” necessarily manifests itself (or not) in the equation.

Michaell

salter5 said:

Michaell said:

salter5 said:

Michaell said:

salter5 said:

Michaell said:

We don't recommend making a down payment (cap cost reduction) on a lease - if the car is stolen or totaled, you lose that money.

Your calculations are correct - the $1500 rebate is included in the cash due at signing.

The $750 conquest rebate should be in addition to any lease cash; use the "Car Research" link at the top of the page to see all customer incentives.

Thanks Michael. A couple of questions: A) Is there any argument (besides reducing your monthly payment) for making a down payment (isn't part of the down the taxes and fees and whatnot, which have to be paid upfront? and isn't the reason for GAP insurance to cover one in the event of a car being totaled or stolen?

Reading more on the resources available here in

Also noticed that while my proposed vehicles Sale Price is 38K, the Edmunds TMV appears to be (if my calculations are correct) $38,595.00 and the dealer invoice is $40,060 -- how can they afford to go down to $38K then? Volvo rebates to the dealer which they may or may not pass onto the consumer?

Please let me know, too, if I'm intruding on this thread and going too far off-topic and I'll summarize all of this on a separate, new thread! Hope I haven't jumped in here too much.

Thanks again!

Salter

These are all valid questions ...

1. No - the only reason to do a down payment is to lower your monthly payment. The total cash outlay for the lease stays the same, just the calculus is different.
2. GAP insurance does pay the difference between the current value and the payoff - but the payoff is reduced by $x that you put down. Hence, the money you put down is not returned to you.
3. Sale price can be below the published invoice value for many reasons, one of which are factory to dealer incentives that we may never know about.

Thanks Michael:

On the general Volvo forum here I posted a few questions on Volvo Financial that I had. But I just noticed that Volvo Financial includes the GAP Waiver at not add’l cost (at least that I can see ) But I understand, then, that even with this GAP Waiver from Volvo, if for the first few months of the leasing of the car, should it be totaled that I’d be out that money then? In my case, were I to use the customer cash (they’re asking for $1825 approx) that would represent about 6 months of payments. I’m sort of inclined to see if they wouldn’t just raise my monthly by $50 then (which would represent that figure divided by 36 months). Which wouldn’t be stretch for me.

If my assumption is right (I’m calling Volvo Financial tomorrow to see if they’ll send me the language of the GAP Waiver program since they lack specific language on their site) this might be the right move.

You're thinking of taking the customer cash as a rebate back to you? That's certainly an option, though admittedly one I don't see very often. Actually, never.

Thanks Michael.

I’ve heard mention this "$1250 lease cash” but I’m either misunderstanding it or my dealer says it doesn’t exist. It appears to be a rebate or incentive from Volvo to the dealer. I suppose it may or may not be “passed along” to the buyer.

http://www.edmunds.com/volvo/s60/2015/car-incentives.html

Under T5 Drive-E Sedan (2.0L 4-cyl. Turbo 8-speed Automatic):

I see Loyality ($1000) if you own a Volvo or Saab previous. Conquest ($750) if you own among others a BMW, Mercedes, etc.

and then under Marketing Support:

Dealer Cash Dealer Cash
Requirements and Restrictions:
Volvo Allowance is available towards leasing or retail purchases. Please note that dealer cash is payable to the dealer and not the consumer. Accordingly, dealer cash incentives are taken into consideration when Edmunds determines the True Market Value® of a vehicle, as well as by the dealer when it sets its Edmunds.com Price Promise® offer. These incentives for the dealer are applied independently of any customer incentives the manufacturer may be offering directly to the consumer.
Dealer Cash Start End
$1,250 02/03/2015 03/31/2015

So this $1250 isn’t necessarily applied directly against the price of the car? I suppose it can be buried or somehow show up on a copy of the lease. Or not? I’m not sure I’m getting it or not. I guess fair play to the dealer if it’s what Volvo is giving to them as perhaps this is one way they make a buck (besides F&I) these days when the “invoice” price and TMV is so well-known.

Just wondering how this "$1250 lease cash” necessarily manifests itself (or not) in the equation.

You are exactly right .. the lease cash is a factory to dealer incentive; the dealer can choose to pass it along to the customer, in whole or in part. You, of course, want it all deducted from the negotiated price.

mikewolf

2015 S60 T5 AWD Platinum + Climate, 0 signing, 450/month, NJ resident, 39/10K, good?

Michaell

mikewolf said:

2015 S60 T5 AWD Platinum + Climate, 0 signing, 450/month, NJ resident, 39/10K, good?

Not enough information ... what were the MSRP and net capitalized cost?

mikewolf

MSRP 44875, discounted price 40,875. 39/10k, 

Michaell

mikewolf said:

MSRP 44875, discounted price 40,875. 39/10k, 

mikewolf said:

2015 S60 T5 AWD Platinum + Climate, 0 signing, 450/month, NJ resident, 39/10K, good?

Numbers on the 2015 S60 T5 AWD Platinum are .00165 and 52% (39/10). $2500 lease cash.

Plugging in your MSRP and discounted price, I get a pre-tax payment of $555.69.

Are you sure this isn't a 2015.5? Lease numbers are 55% and .00001, which results in a pre-tax payment of $415.88.

mikewolf

Michaell said:

MSRP 44875, discounted price 40,875. 39/10k, 

2015 S60 T5 AWD Platinum + Climate, 0 signing, 450/month, NJ resident, 39/10K, good?

Numbers on the 2015 S60 T5 AWD Platinum are .00165 and 52% (39/10). $2500 lease cash. Plugging in your MSRP and discounted price, I get a pre-tax payment of $555.69. Are you sure this isn't a 2015.5? Lease numbers are 55% and .00001, which results in a pre-tax payment of $415.88.

Probably you are right. It's a 2015.5. So if everything is rolled into the payment is 450/month a good number for NJ? 

Michaell

mikewolf said:

Michaell said:

mikewolf said:

MSRP 44875, discounted price 40,875. 39/10k, 

mikewolf said:

2015 S60 T5 AWD Platinum + Climate, 0 signing, 450/month, NJ resident, 39/10K, good?

Numbers on the 2015 S60 T5 AWD Platinum are .00165 and 52% (39/10). $2500 lease cash.

Plugging in your MSRP and discounted price, I get a pre-tax payment of $555.69.

Are you sure this isn't a 2015.5? Lease numbers are 55% and .00001, which results in a pre-tax payment of $415.88.

Probably you are right. It's a 2015.5. So if everything is rolled into the payment is 450/month a good number for NJ? 

If you're comfortable with the selling price and can confirm the MF isn't marked up, yes.

roubaud

As soon as someone has the April numbers I'd like to know -- going to dealer next week. 2015.5 T5 drive-e premier with climate, blis, heated front seats. 36/10 on the lease. MF and RV please. I figure the incentives will be easy enough to find, but if you know them toss them in please. You all were a great help 3 years ago!

Michaell

roubaud said:

As soon as someone has the April numbers I'd like to know -- going to dealer next week. 2015.5 T5 drive-e premier with climate, blis, heated front seats. 36/10 on the lease. MF and RV please. I figure the incentives will be easy enough to find, but if you know them toss them in please. You all were a great help 3 years ago!

No April numbers until later this week at the earliest. Check back in.

roubaud

In addition to the above request, looking for numbers on a 15.5 T5 prestige with blis, 36/10. Thanks!

kyfdx

roubaud said:

As soon as someone has the April numbers I'd like to know -- going to dealer next week. 2015.5 T5 drive-e premier with climate, blis, heated front seats. 36/10 on the lease. MF and RV please. I figure the incentives will be easy enough to find, but if you know them toss them in please. You all were a great help 3 years ago!

.00001 MF and 59% residual. $1250 lease cash

kyfdx

roubaud said:

In addition to the above request, looking for numbers on a 15.5 T5 prestige with blis, 36/10. Thanks!

I don't see a Prestige trim...

roubaud

In addition to the above request, looking for numbers on a 15.5 T5 prestige with blis, 36/10. Thanks!

kyfdx said:

roubaud said:

In addition to the above request, looking for numbers on a 15.5 T5 prestige with blis, 36/10. Thanks!

I don't see a Prestige trim...

Meant Platinum. Sorry. Still stuck on 2015 trim levels.

Michaell

roubaud said:

In addition to the above request, looking for numbers on a 15.5 T5 prestige with blis, 36/10. Thanks!

kyfdx said:

roubaud said:

In addition to the above request, looking for numbers on a 15.5 T5 prestige with blis, 36/10. Thanks!

I don't see a Prestige trim...

Meant Platinum. Sorry. Still stuck on 2015 trim levels.

T5 Platinum - .00001 and 57%. $1250 lease cash.

otis12

Volvo really needs to get their upfront cash lower than $2999 for advertised leases. I'd be a leasee at around $2000 down and $299/month for an S60. Is anyone at Volvo USA listening?

roubaud

otis12 said:

Volvo really needs to get their upfront cash lower than $2999 for advertised leases. I'd be a leasee at around $2000 down and $299/month for an S60. Is anyone at Volvo USA listening?

They need xenons on all their cars if they tout safety. Shoot, even Mazda is offering LEDs on the 6. Get with it, Volvo! I've seriously been looking at Acura mostly for the headlights.

Michaell

otis12 said:

Volvo really needs to get their upfront cash lower than $2999 for advertised leases. I'd be a leasee at around $2000 down and $299/month for an S60. Is anyone at Volvo USA listening?

You can negotiate any amount down you want. The best way to lower the payment is to negotiate a low cap cost. 

valen1

Talk to me, Goose:

2015.5 T5 drive-e premium
convenience and blis, heated front seats
MSRP $41,000
OTD $38,880 (no down), includes $1,000 loyalty
39/10k miles
$419 / month
MF .0002 (moderator above said .00001)
RV 57% (moderator above said 59%)

I feel like there's money on the table yet. Thoughts?

Michaell

valen1 said:

Talk to me, Goose:

2015.5 T5 drive-e premium
convenience and blis, heated front seats
MSRP $41,000
OTD $38,880 (no down), includes $1,000 loyalty
39/10k miles
$419 / month
MF .0002 (moderator above said .00001)
RV 57% (moderator above said 59%)

I feel like there's money on the table yet. Thoughts?

The pattern is closed ....

First, I don't see a "premium" trim for the T5 Drive-E, only Premier and Platinum.

39/10 numbers are .00001 MF for both, 57% for Premier and 55% for Platinum.

MF is being marked up on you, so by politely but firmly explaining to the dealer you won't sign a deal with that MF, you'll save yourself a little bit.

With your MSRP and OTD prices, along with the 57% residual and .00001 MF, I get $398.31/mo pre-tax.

jpp75

Just realized I never posted my final details. I was able to get them to lower the Volvo acquisition fee to $699, and told them I would pay the first payment at delivery as they had rolled it into cap cost. No need to finance that over 39 months.

Final deal was 2015.5 T5 FWD, Platinum with Climate Package, 15k/year, $463/mo and only first payment due at signing.

kyfdx

jpp5862 said:

Just realized I never posted my final details. I was able to get them to lower the Volvo acquisition fee to $699, and told them I would pay the first payment at delivery as they had rolled it into cap cost. No need to finance that over 39 months.

Final deal was 2015.5 T5 FWD, Platinum with Climate Package, 15k/year, $463/mo and only first payment due at signing.

Congrats!

roubaud

I was not a math major and I'm scratching my head at two deals -- one an S60 T5 drive-e premium and the other a platinum. I can't figure out why the lease payments are so different with a nearly identical OTD and RV. Is it just a matter of tax based on MSRP? I was thinking I'd be able to jump up to platinum at about the same price. Please tell me why I'm a moron.

S60 T5 drive-e 2015.5 premier w/ convenience and blis and heated front seats
MSRP 41,025
Sell at 37,880
39/10
RV 57% (23,384)
MF .0002
no down payment
monthly w/ tax $413

S60 T5 drive-e 2015.5 platinum w/ blis
MSRP 42,565
Sell at 37,508
39/10
RV 55% (23,410)
MF .00076
no down payment
$474 per month w/ tax

jpp75

kyfdx said:

jpp5862 said:

Just realized I never posted my final details. I was able to get them to lower the Volvo acquisition fee to $699, and told them I would pay the first payment at delivery as they had rolled it into cap cost. No need to finance that over 39 months.

Final deal was 2015.5 T5 FWD, Platinum with Climate Package, 15k/year, $463/mo and only first payment due at signing.

Congrats!

Thanks, it's pretty close to the 1% of MSRP guideline for leasing (MSRP was just south of $44k). I probably could have gotten an ILX for $100/mo or so cheaper but I'm happy with the Volvo and like having something "different".

straman17

roubaud said:

I was not a math major and I'm scratching my head at two deals -- one an S60 T5 drive-e premium and the other a platinum. I can't figure out why the lease payments are so different with a nearly identical OTD and RV. Is it just a matter of tax based on MSRP? I was thinking I'd be able to jump up to platinum at about the same price. Please tell me why I'm a moron.

S60 T5 drive-e 2015.5 premier w/ convenience and blis and heated front seats
MSRP 41,025
Sell at 37,880
39/10
RV 57% (23,384)
MF .0002
no down payment
monthly w/ tax $413

S60 T5 drive-e 2015.5 platinum w/ blis
MSRP 42,565
Sell at 37,508
39/10
RV 55% (23,410)
MF .00076
no down payment
$474 per month w/ tax

Your MF to step up to the Plaitinum (1%) as well as the hit on the 2% in residual & higher MSRP is where the difference is it makes sense. Premier's are cheaper to lease.

Michaell

straman17 said:

roubaud said:

I was not a math major and I'm scratching my head at two deals -- one an S60 T5 drive-e premium and the other a platinum. I can't figure out why the lease payments are so different with a nearly identical OTD and RV. Is it just a matter of tax based on MSRP? I was thinking I'd be able to jump up to platinum at about the same price. Please tell me why I'm a moron.

S60 T5 drive-e 2015.5 premier w/ convenience and blis and heated front seats
MSRP 41,025
Sell at 37,880
39/10
RV 57% (23,384)
MF .0002
no down payment
monthly w/ tax $413

S60 T5 drive-e 2015.5 platinum w/ blis
MSRP 42,565
Sell at 37,508
39/10
RV 55% (23,410)
MF .00076
no down payment
$474 per month w/ tax

Your MF to step up to the Plaitinum (1%) as well as the hit on the 2% in residual & higher MSRP is where the difference is it makes sense. Premier's are cheaper to lease.

What he said ....

roubaud

straman17 said:

roubaud said:

I was not a math major and I'm scratching my head at two deals -- one an S60 T5 drive-e premium and the other a platinum. I can't figure out why the lease payments are so different with a nearly identical OTD and RV. Is it just a matter of tax based on MSRP? I was thinking I'd be able to jump up to platinum at about the same price. Please tell me why I'm a moron.

S60 T5 drive-e 2015.5 premier w/ convenience and blis and heated front seats
MSRP 41,025
Sell at 37,880
39/10
RV 57% (23,384)
MF .0002
no down payment
monthly w/ tax $413

S60 T5 drive-e 2015.5 platinum w/ blis
MSRP 42,565
Sell at 37,508
39/10
RV 55% (23,410)
MF .00076
no down payment
$474 per month w/ tax

Your MF to step up to the Plaitinum (1%) as well as the hit on the 2% in residual & higher MSRP is where the difference is it makes sense. Premier's are cheaper to lease.

Thanks. I'm just surprised it makes that much difference when they have virtually the same selling price and residual value (granted a spread of 1,500 on msrp), but I'm clearly not looking at it in the right way. Appreciate your insight.

straman17

Yes sometimes it is unfortunate when you want a certain trim but the financially smart or best value is not the one you want. Good luck on the S60

roubaud

Going to another state to get the car I wanted, but one way airfare is cheap. Here's what I'll be signing:

2015.5 S60 T5 Drive-E Platinum w/ blis package
MSRP 42,465
Sale $37,508 (includes loyalty)
MF .00001
39/10
No money down
$426 per month

What do you think? Maybe could have done a hair better. I can't wait to have all of those safety tech features! Thanks again for the forum -- Edmunds has helped me buy four cars now.

Michaell

roubaud said:

Going to another state to get the car I wanted, but one way airfare is cheap. Here's what I'll be signing:

2015.5 S60 T5 Drive-E Platinum w/ blis package
MSRP 42,465
Sale $37,508 (includes loyalty)
MF .00001
39/10
No money down
$426 per month

What do you think? Maybe could have done a hair better. I can't wait to have all of those safety tech features! Thanks again for the forum -- Edmunds has helped me buy four cars now.

I'm getting $363.49 before tax with your numbers (.00001 MF and 55% residual). Is the net cap cost the same as the selling price? I'm guessing no.

roubaud

Cap cost is $39,435.

roubaud

Michaell said:

roubaud said:

Going to another state to get the car I wanted, but one way airfare is cheap. Here's what I'll be signing:

2015.5 S60 T5 Drive-E Platinum w/ blis package
MSRP 42,465
Sale $37,508 (includes loyalty)
MF .00001
39/10
No money down
$426 per month

What do you think? Maybe could have done a hair better. I can't wait to have all of those safety tech features! Thanks again for the forum -- Edmunds has helped me buy four cars now.

I'm getting $363.49 before tax with your numbers (.00001 MF and 55% residual). Is the net cap cost the same as the selling price? I'm guessing no.

Cap is $39,435. It's $425.44 w/ tax.

Michaell

roubaud said:

Michaell said:

roubaud said:

Going to another state to get the car I wanted, but one way airfare is cheap. Here's what I'll be signing:

2015.5 S60 T5 Drive-E Platinum w/ blis package
MSRP 42,465
Sale $37,508 (includes loyalty)
MF .00001
39/10
No money down
$426 per month

What do you think? Maybe could have done a hair better. I can't wait to have all of those safety tech features! Thanks again for the forum -- Edmunds has helped me buy four cars now.

I'm getting $363.49 before tax with your numbers (.00001 MF and 55% residual). Is the net cap cost the same as the selling price? I'm guessing no.

Cap is $39,435. It's $425.44 w/ tax.

I'm getting $413/mo before tax, so your quote of $425 with tax looks pretty good.

roubaud

Thank you! Anything to make me feel better.

jpp75

@roubaud Congrats on the S60, I love mine so far and you got a good deal.

salter5

I ended up getting an S60. Thanks to the moderator and everyone on here. A lot of great info here. And it really helped me.

I think I did OK. I'm going to post a link to the PDF of my lease (After blacking out any personal info) just so others can see and maybe know what fees they may be able to negotiate or avoid :-) As long as this is permitted on edmunds.com

By the way, I noticed the NYT CFO posted a copy of his lease for a Lexus or Infiniti or some such as an example of what not to do

kyfdx

salter5 said:

I ended up getting an S60. Thanks to the moderator and everyone on here. A lot of great info here. And it really helped me.

I think I did OK. I'm going to post a link to the PDF of my lease (After blacking out any personal info) just so others can see and maybe know what fees they may be able to negotiate or avoid :-) As long as this is permitted on edmunds.com

By the way, I noticed the NYT CFO posted a copy of his lease for a Lexus or Infiniti or some such as an example of what not to do

Congrats!

mszkoda

Does anyone have the June numbers for the 2015.5 S60? 12k/36 (or whatever month term is better), Northeast, T5 S60 AWD Premier Trim.