2013 and earlier Volvo S60 Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo S60. Thanks.

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urnuts

Posted in the wrong area.

Here's my deal:

2005 S60R
MSRP: $42,165 selling price: $35,005
$1000 Acquisition fee
Money factor (I think) is .0021
Residual is: $19,395 (.46)?
12K/year
36 month lease @ $488/month
Money down is: $3607(Acquisition fee of $1000, first payment of $488, $2000 cash, and about $120 in fees.)

What do you think- I like the selling price, but the "deal" has me a bit confused. My credit score is about 750- I think that the acquisition fee of $1000 is absurd!

CarMan@Edmunds

Hi urnuts. Your lease must be through a bank other than Volvo Finance because to the best of my knowledge, it is no longer leasing 2005 models. Volvo is currently providing $4,500 dealer cash on the 2005 S60 R. Judging by the prices that you mentioned in your post, you are getting all of this dealer cash and are getting this car for pretty close to dealer invoice. This sounds like a fair deal for this car to me. I cannot comment on the other parameters of your lease because I am not familiar with the programs that is being offered on this car through independent banks right now, other than to say that the money factor and residual value that you were quoted for this car look reasonable to me. You're right about the $1,000 acquisition fee though. I'd say that it is around $400 to $500 too high. Also, you mentioned that you are considering making a $2,000 capitalized cost reduction on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your S60 would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.

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urnuts

Thanks for the help. You are correct, the lease is through Chase (JP Morgan Chase). After reading your responses/comments to the other posters, I now understand that putting money down is NOT a good idea. I think I'd like to do this- but only if they can get the acquisition fee down to $600... max; Just bugs me!
(Volvo Financial charges $575)
The "deal", from the selling price standpoint, seems fair; from $42K down to $35K.
I've just never leased before, and inherently don't like the idea but, I do understand the pros & cons, and think I might try it on this car.
Thanks so much for your help!!

mycle

Volvo Financial currently has a lease offer on the S60 2.5T that I plan on looking into. The car I'm interested in is priced as follows:
MSRP $30,270
Black N/C
Premium Package $2,995
Climate Package $675
Satellite Radio Preparation - Sirius $75
Destination Fee $695
Total $34,710

The current advertised lease offer is $299/mo. for 36 mos.; 30,000 mi.; $4,069 due at lease inception ($2850 cap reduction, $595 acq. fee, $325 sec. deposit, and $299 1st payment); on a vehicle with a gross cap cost of $30,191. Buy out is at $16,871 with $395 disp. fee.

I plan to try to work out a 36 mo. deal that would require a lower or no cap reduction and a 12,000 mile per year allowance. Given the current Vovlo lease incentives, could you give me an idea of what a fair deal might look like on the $34,710 car I'm looking at? Thanks in advance for any guidance you can provide.

CarMan@Edmunds

You're welcome urnuts. Let me know if you have any other questions.

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CarMan@Edmunds

Hi mycle. After taking the down payment into account, it appears as though the advertised lease that you mentioned is based upon a selling price that is just over $1,600 under full MSRP. This is a reasonable selling price, so let's use it to estimate the revised lease payment that you are interested in. According to my calculations, if you were to lease a 2006 Volvo S60 2.5T with an MSRP of $34,710 and a selling price of $33,041 through Volvo Finance right now for 36 months with 12,000 miles per year, its zero down pre-tax monthly payment should be around $411.

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rugby_s2k

Trying to tie-down the November MF & Residuals for a 2006 S60 2.5T.

Can't seem to find any info on MF.

Residuals for would be for the following terms:
24/12k
24/15k

36/12k
36/15k

I need to close a lease prior to month end as my current car is due back on Nov 29. Your assistance would be appreciated.

Lastly if a 'host' is responding, could you check my similar post in the Saab 9.3 forum as those are the two cars in the running.

Thanks,
Michael

CarMan@Edmunds

Here's the info that you're looking for, Michael. If you were to lease a 2006 Volvo S60 2.5T through Volvo Finance right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00001 and 61%, respectively. Its numbers for an otherwise identical 36 month lease should be .00008 and 51% in most areas.

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philzey

I got my lease in Dec. of 2002 and it was through Chase Manhattan. My acquisition fee was $650. I formerly worked at a car dealership and can tell you that acquisition fees vary among banks. In the future, it's just one more thing to remember when you're negotiating, if it's that important. Even with my experience, it's difficult to remember every little detail to make sure I'm getting the best deal. Leases can be complicated. I can also tell you that Chase is better and fairer than most other banks when it comes to leases. Definitely better than Wells Fargo or B of A. The extra $300 is very little in comparison to what the overall cost might have been through a different bank, including Volvo Finance (they're on drugs).

carsmart1

I've received the following "deal" for leasing a 2006 Volvo S60 2.5T with a MSRP of $35185. "X"plan pricing of $33468 less complimentary premium package of $2995, making the purchase/lease price $30,493. I've been quoted the following lease amount. 15,000 annual miles, 36 month lease, $434.49 (includes personal property taxes) with initial $933 payment. Does this sound reasonable? Any suggestions to lower amounts?

jcanal

But would putting a down payment effect your monthly payments by making them lower?

Jen

newbeetle04

Was in a NJ dealership today and spoke about lease pricing on a new S-60. When I asked about a manual tranny, the salesman told me the lease would be worse with a manual. Is this because the resale at end of lease would be less due to a stick? For an automatic,He had me at 450 per mo., 3 yr lse w/15,000 miles per year, with refundable security of 325, first months payment @450, bank charge of 650 and a 1000 down payment. I'd much rather a manual tranny. Any thoughts on this deal, good/bad and ideas about the manual versus automatic?

guyf

Did you road test both? With a turbo engine, a manual tranny is not necessarily the best choice. Everytime you lift off the accelerator pedal to shift, you loose turbo pressure which has to rebuild after you completed the shift.

No such thing with the automatic.

And yes, the residual is less on the manual, as there is less demand for it.

jcanal

The best lease quote I have gotten from 5 dealers in my area, for a volvo s60- premium package, for 3 years, 10,000 K, with $2000 down is $412 a month. Does this sound like a good deal?

CarMan@Edmunds

Hi carsmart1. Obviously since you are purchasing through Volvo's X-Plan, the selling price that you were quoted for this car looks very reasonable to me. Volvo is running a special lease program on this car right now, but this special program is not compatible with its "Complimentary Premium Package" offer. Ignoring the free package, if you were to lease a 2006 Volvo S60 2.5T with an MSRP of $35,185 and a selling price of $33,468 through Volvo Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $426. If you didn't lease this car in December, shoot for this monthly payment.

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CarMan@Edmunds

Yes, Jen, making a down payment on a lease would lower your monthly payment by reducing the amount that you are financing, but this lower payment comes with the risk of losing your money if your vehicle is totaled and it does nothing to lower your vehicle's lease-end purchase price. If you have extra money that you were considering using as a down payment, you can always use it to supplement your monthly lease payment or make a few of them for you.

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CarMan@Edmunds

Hey jcanal. I'd be happy to give you my opinion on this lease but you never mentioned the selling price or MSRP of the car that you are interested in. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are.

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pfchen

Hi, Car_man,
Thanks for your help in advance.
I am interested in the Volvo current lease special, $2850 down, $325 deposit, acquisition fee $595, monthly $295 for 36 months 10,500 miles/year. Could you please dvise if this is a good deal?
Thanks.

srodd

Hello,

I have a 2002 Volvo s60 2.4T I will be turning in at the end of July. This is the first vehicle I have ever leased and would like to know how other peoples experiences with volvo car finance have been. I have read other forums here but they do not deal with Volvo's finance company and would like to know if it is different. The car is in excellent shape i am just wondering how nit picky they will be.

volvomax

You will find out in advance, because Volvo Finance will send you an inspector 30 days prior to lease end.
Also, you should have recieved an end of term kit from Volvo that goes over what they look for on your vehicle.

hnlaw

What do you think of this deal?

2006 S60 w/ premium package and metallic paint and sirius ready, MSRP 34880. Lease deal: 376 + tax per month, 48 month lease, 12k per year, $1000 TOTAL due at lease signing to include first month, security, etc.

I have been dealing with several dealership, and have gotten the monthly down to this.

Thanks!

Hollie

qbrozen

i'm not sure this method of breakin down all the lease questions into their respective cars is working ... but i'll try asking anyway.

On a whim, I'm curious as to the residuals and MFs for an '06 S60R 6-speed loaded with everything except NAV ($42,875 MSRP). 15k miles a year for 36 or 39 mos. Carsdirect tells me I should pay $36,475 for this car. Over $6k off MSRP is a helluva deal on such a nice car.

volvomax

Volvo has a special program for this car, but you don't get the dealer cash. So you don't get the car for $6000 off.
Odds are you are better off w/ the factory lease program.

qbrozen

thanks volvomax.

do you happen to know the details on this special program? I know its asking alot, but let's say nothing down on the S60R with an MSRP i stated above (42,875).

OR, if that's not easy to do, just the MF and residuals on a 36-month lease would be extremely helpful. Thanks.

volvomax

I do.
You can email me if you want the info.

volvoleaser

I leased a Volvo 2.4T in 2002 with the lease having a 51% residual value. My lease is up and I am looking at leasing 2006 2.5T. The lease is not as attractive is my last lease because the residual value is set at 44%. Can the residual percent be negotiable? I'm happy with the selling price of the car, but the residual value is hurting my monthly payment.

CarMan@Edmunds

Hey pfchen. Like most manufacturers' advertised lease payments, I suspect that the S60 lease that you have seen advertised is a good deal, but one that can be beaten. If one thinkks about it, it makes sense. Dealers would be pretty irritated if automakers advertised the skinniest possible deal on a particular model. If you are in an area where there is a decent level of competition, I suspect that you will be able to negotiate a lower selling price than the one that this advertised payment is based upon. Shop around with a few Volvo dealers in your area to get the lowest possible price for the car that you want and then have the dealer that quotes you it calculate your car's lease program using Volvo Finance's buy rate lease money factor. I can tell you what Volvo Finance's current lease program is like for this car if you are interested.

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CarMan@Edmunds

Hi Hollie. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what its selling price is.

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CarMan@Edmunds

Hey qbrozen. If you were to lease a 2006 Volvo S60R through Volvo Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00019 and 50%, respectively. The numbers for an otherwise identical 39 month lease should be .00020 and 49%. I doubt that you will be able to get $6,000 off of this car if you want to lease it though. The CarsDirect price quote that you were given probably includes the $4,000 dealer cash that Volvo is currently providing on the '06 S60 R. Unfortunately, this dealer cash is not compatible with Volvo Finance's special lease program.

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CarMan@Edmunds

Hello volvoleaser. Unfortunately, vehicles' residual values are set by banks and individual dealers do not have the authority to alter them. The residual value that you were quoted sounds a little low to me though. How long are you leasing this car for and how many miles per year does your lease include. A 36 month, 15,000 mile per year lease of an '06 S60 2.5T through Volvo Finance should currently have a residual value of 52%. As you can see, this is much higher than the number that you were quoted, so something is strange here.

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qbrozen

thanks.
good to have you back, carman

ottawasensky

Hey I decided to go with an S60 because I think I got a really good deal on it, although it is just the base model, just wanted to know what you thought.

After the Ford Z-plan, the total cost of the car ended up being around 28K, and I put $0 down, only thing i paid at signing was your normal fees + security deposit because i never had a volvo before. So with $0 down i paid 1400 at signing. The acquisition fee was something like $634.

My lease terms is a 24 mo./12k miles per year lease at $320 per month. Does that sound like a pretty good deal or did I get ripped off any?

qbrozen

hmmmm... are you sure its just a base model? What was the MSRP? Because carsdirect tells me i could get a no option 2.5T for $26,032 (msrp = $31,335).

by the way, the volvo website also claims that S60s can be had with a complimentary premium package.

ottawasensky

Well I ended up getting the S60 base, I think the final buying price with Ford A/Z plan ended up being around 26K, 2yr lease/12k miles a year, Im gonna end up paying $310 a month, thats including taxes, and with Zero down.

I go on Volvo's site pretty frequently, I guess I missed where I could get a complimentary premium package, kinda disappoints me now if thats true.

qbrozen

well, i don't want you to be disappointed, but I also don't want anyone to think its not true.

http://www.volvocars.us/Showroom/S60/Incentives

ottawasensky

thats no problem, still dont know if I would have even qualified for that free upgrade. Now im hoping I didnt . Anyway Im really loving this car, and think I got a good lease deal.

volvomax

Actually, the free Prem pkg comes out of the dealer money. It is not in addition to it. Also, it isn't available if you lease through VFNA.

qbrozen

well, there ya go. your deal didn't qualify. Go enjoy!

CarMan@Edmunds

You're welcome, qbrozen.

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ecoastharley

Hi,

I was at the dealer tonight and this is what I am seeing... this is a black/black S60R loaded, incl Nav with a MSRP of $45,180. The lease price is $42,930 (seems too high) and the lease specs are MF .00059 and RV of 53%. So for a 36mo/15k lease we are looking around $600 (also seems high) with only minimal down (around $1500 for 1st mth, security dep, doc and reg fees)

Any thoughts on that one? thanks in advance.

~Bob

qbrozen

Well, here's the problem ... carsdirect is showing me a price of almost $5k below INVOICE on S60Rs. Thing is, I don't know how accurate this is since carsdirect is very slow to update their incentives and this special pricing very well may have dried up this month. ALSO, does that special pricing apply to a lease? I dunno.

That's a really low MF, though.

According to Edmunds lease calculator, $600 is dead on (well, ok, $600.94) given the selling price, money down, residual, and MF you were quoted ... only thing is I had to compute at my tax rate, which is 6% ... so that may vary depending on where you live.

volvomax

Can't use the incentives w/ a VFNA lease, and VFNA is the best bet on the R.

qbrozen

hmmmm... i dunno. $5k difference can make up for ALOT of interest.

Actually, if I use Edmunds default lease rate of .0029 and knock the additional $5k off the cap cost, I get a payment of $601.98, so just $1 more than paying invoice at the subsidized rate.

So if one could manage to find a bank or credit union with a lower lease rate than .0029 and the same residual value, then they'd be better off than taking Volvo's deal. Feel free to correct me because leasing is still quite foreign to me.

volvomax

You forgot about the residual.
Bank residual is 43%, not the 53% it is w/ VFNA

qbrozen

OUCH!!! That's horrible! remind me not to buy a new one, will ya?

volvomax

That is why you lease it thru VFNA

Then, you just turn it in at the end and let the finance co take the hit.

ecoastharley

Hi.. thanks for the info.

Yeah... the MF is good, very good. The dealer is telling me there really are no incentives on this car... too much of a niche market. Anyone hear different?

So here is where I am...
MF .00059
RV 53%
MSRP 45,180
Price 42,930 (says it is just 2% over invoice)
36mo/15k miles
Monthly payment $673 ($589 + $32 sales tax + 51 excise tax (a MA thing)
Out of pocket: $1718

It just seems really high to me, from what I have been reading in these forums.

Using the calc on Leaseguide.com it comes out to $566 plus $28 for tax.

Thoughts?

qbrozen

well now you've jumped from $600 to $673. As I said in my post, it would be $600 for me with my state sales tax, which is 6%. Looks like yours is about 5.5%?

I have no idea what that extra tax is. If you say its mandatory in MA, then I guess there's nothing you can do about it.

Personally, I think 2% over invoice is still too much. With the huge incentives on purchases Volvomax and I were just talking about, I don't think you should be paying much over invoice at all (or even exactly invoice).

In any case, I'd ask the dealer why their calculations are not jiving.

Are you SURE that $589 doesn't already include the tax? Because when I put those numbers into edmunds calculator and use 5.5% tax rate, the total payment comes to about $590 (which, by the way, is $561 + $30 tax, so a bit different than leaseguide told you).

Another question is, what are all the fees? Are they adding in additional costs that are not being covered by your $1700 down, and, therefore, are being rolled into the payment?

ecoastharley

Hi.

Yeah.. the first time around I think the dealer had more of a deposit in the calculation. The $589 does not include taxes... it breaks down with $589 + $32 (5% sales tax) + $52 (Called excise tax, state vehicle property tax - I think it is a MA thing) Usually it is not in the lease, we get annual tax bills... but this lender adds it to the monthly payment. So I guess it is really closer to 589 + 32 = $621 with normal lease and tax payments.

The fees are like this: 1st month payment- $673, Reg- $81, Doc fee $289, and Security $673. Total of $1,718 (rounding errors I guess)

Now when I ran these figures in Edmunds I am getting like $672. But... not sure I am running them correct.

This is my first lease, can you tell?

ecoastharley

Different car, still loaded, no nav.

MSRP 43,600
Lease 39,500
RV 53%
MF .00059
15k mile/36mo
Due at signing $1,500
Payment is $598 (Really $546 if you don't include the MA Excise (property) Tax)

I think this one looks pretty good... mid 5's is where I wanted to be.

Thoughts? Thanks in advance.