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Volvo V50 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited July 2014 in Volvo
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo V50. Thanks.

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  • Hey Carman,
    Could I have the residuals and MFs for the T5 and 2.4 for both 2005 and 2006 model years? I'm looking at a three year lease with at least 12,000 miles/year.
  • Hi martyt1. Volvo is not longer providing lease support on 2005 models, so you if you want to lease one you probably would be better off doing so through an independent bank. If you were to lease a 2006 Volvo V50 2.4 through Volvo Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00275 and 57%, respectively. The numbers for an otherwise identical lease of a 2006 Volvo V50 T5 should be .00285 and 57%.

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  • HI!!
    can anyone tell me the typtical money factor (***and WHAT credit score they go by to get this***) and residuals for a volvo V50 T5 AWD manual 6-speed 2006? (does it matter if it would have leather as far as the factors? or is that just effect cap cost?)
    Also, what should i strive for in a cap cost.... is it unreasonable to ask for the current (i think its the current manufactuer to dealer?) incentive of 1 K... and ask for 1K below invoice?
    I have a rare car for trade in end lease. Can i neogiate anything with this into the agreed cap cost?
  • Hi chiquita. If you were to lease a 2006 Volvo V50 T5 AWD through Volvo Finance right now for 36 months, its buy rate lease money factor should be .00245. This is really not all that great a money factor. It is equivalent to an interest rate of almost 5.9%. I am not sure of exactly what sort of credit score is necessary to qualify for this money factor, but I do not believe that Volvo Finance is all that restrictive in who they allow to use it. You should be able to take advantage of it without much trouble unless your credit is in really bad shape. The fact that the model that you are interested in has leather does not have any impact upon its lease program, just your car's capitalized cost. I am not all that familiar with what the market for this model is like right now, so I really can't give you any guidance about what sort of selling price to shoot for. I can tell you though that the $1,000 dealer cash that is available on the '06 Volvo V50 is not compatible with leases through Volvo Finance. If you lease this car using the aforementioned money factor, you can't take advantage of the dealer cash. You may want to see if the dealer that you are working with can run your lease through a bank other than Volvo Finance. Volvo is providing a special $2,000 cash incentive on '06 V50s leased through independent banks this month.

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  • Hi Car_man:
    I'm new to leasing but I think I have a pretty good offer. The dealer told me they have $2500 in incentives to lease 2006 V50's. Here is the information they gave me:
    39 Months - 12K miles/year
    MSRP: $31,245
    Selling price: $ 26,812
    Due at signing: $ 500
    Lease rate: 4%
    Residual: $ 17,029
    Monthly payment: $ 378
    Seems like a good deal to me. Your thoughts?
    Thanks, Drew
  • OK - I have some more information and questions. Hopefully you guys can help me out... I finally found a dealer that will give me what my trade is worth. Unfortunately, it seems they are making up the difference in the lease terms. The terms above were money factor of .00166 (4%) and residual of $17,029. New dealer says their best rate is .00190 and residual of $16337.92. They will "beat the competition" if I can get the first offer in writing. Are these rates published somewhere? If not, any advice on convincing the dealers to give me formal quotes?? Thanks in advance!!!
  • tslbmwtslbmw Posts: 172
    I'm looking at a Volvo V50 and here's what the dealer just faxed me:
    MSRP: 31235
    Lease End Value: 14836.63
    Selling Price: 27980
    Lease Term: 39
    Doc Fee add to cap: 895
    Adjusted Cap cost: 28875
    Lease Factor: .00254
    Sales Tax: 892.56
    Monthly Payment: 470.99
    Security Dep: 0
    Cash Down: first payment plus taxes and two fees = 1413.05

    I've never leased before and don't know how to negotiate this down...this seems high and it is their first offer.
    Please help!
  • I'm looking for the April MF and Residual for the following:

    2006 Volvo V50 T5 AWD 6 speed

    36, 39, 42 months
    12 and 15k miles

    I live in CT if it matters.

    If you caould get me the numbers ASAP it would really help.

    Thanks as always CarMan!!!!
  • OK i am currently on the market for a V50 myself and I have gone to many dealers. I actually have my car on order and it is due in at the end of May. They have not been able to draw up papers because they need to wait till the month that the car is due in. But as for last month April they a were offering $4k dealer cash and there is about 1200 in the MSRP vs the invoice that they also factored in. I am looking at about a $35k V50 that they actually had to drop below invoice price to meet my conditions. When all was said and done they were at $400 a month. Here is the break down:

    48 Month Lease
    MSRP 34980
    Residual 39%
    Residual 13642
    Selling Price 26993
    Adjusted Cap 28669
    Amount Due at Signing 682
    Monthly Payment 399

    When she ordered the car she had to add the premuim sound package so that she could add the Nav to it which was part of my order and that bumped the payment to $409 a month. When I went to another dealer a few weeks ago in May the new dealer cash back is $4500 and the residual and MF stayed the same. Hopefully that help you out a little bit. And for the record these numbers are based in the philly area.
  • jjjzzzjjjzzz Posts: 13
    Can anyone tell me what the current money factor and residual value are for a V50 2.4i, 36 months/10k miles? I am looking to get one soon. Thanks in advance.
  • marys236marys236 Posts: 78
    Could you please give me the MF & RV on a 36 mo, 15k lease of a 2006 V50 2.4, 29180 MSRP, 26189 sale price, in Okla., if that matters. I'm thinking of buying one this month, I'm also going to look at a 2007 VW Passet wagon but I don't think they are having any lease specials on those. I thought I might get a better deal on a V50. Thanks for the info!

  • rainesa1rainesa1 Posts: 3
    Thanks in advance.
  • sgoreliksgorelik Posts: 4
    I am being offered the following deal:

    Fully loaded V50 T5 AWD (list price 37,000)
    cap cost 35,000
    residual 55%
    Interest rate = 0.6%
    36 month , 12K miles
    Lease price = 427/month
    with taxes (NYC) and bank fees rolled in = 480/month

    I saw people getting much lower cap cost on the S60 models and wandering if you think i can push them with this car for a better deal.

    Thanks in advance
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, rainesa1. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2006 V50 T5 2WD with 12,000 miles per year are .00132 and 55% in most states. Volvo is providing cash incentives on leases of this car right now, but they vary by region. If you tell me what state you are in I would be happy to try to give you an idea of what they are like in your area.

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  • erzeszuterzeszut Posts: 16
    Looking at a 12K mile lease, at 30, 36, 39, 42, or 48 months, depending on rates, here in Alabama.

    Also, any incentives currently available? I sure can't seem to find anything...
  • dadofdadof Posts: 10
    Hello Car_man, I live in the Princeton, NJ area and am looking to lease a car. I'm considering the V50, the CR-V and the Outback. Do you have any info on recent leasing experiences for a 24-36 month lease with 12K/year?

  • Hi Car_man. I am looking to lease a V50 T5 FWD with Prem/Audio.
    MSRP: $35,745
    Cap Cost $28,543
    Residual 50% ($17,872)
    MF: 0.00202
    Payment (inc. Tax 7.75%) $420.41.

    Never leased before and I wanted to know if this is a good deal?

    Thanks in advanced
  • Dear forum,

    I got this V50 deal on the table and wanted to know if its good.

    - V50 T5 + Premium package
    - 36 month lease
    - 12K miles per year
    - 1,950 due at signing (includes everything)
    - 379 monthly fee

    I do not have residual value nor the selling price. However, these are real quotes.

    Can anybody tell me if this deal is even half way decent....


  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi erzeszut. Volvo is only providing lease support on the "base" aka stripped version of the 2007 V50 2.4i. If you were to lease one through Volvo Finance right now for 30 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00042 and 60%, respectively. The numbers for an otherwise identical 36 month lease are .00042 and 54%. The 39 month numbers are .00080 and 53%. The 42 month numbers are .00080 and 49%. Lastly, the 48 month numbers are .00080 and 44%. If you want to lease any other variant of this car, you will probably be better off doing so through an independent bank. Volvo is currently providing a $3,000 cash incentive on '07 V50 2.4i models, $4,500 on '07 V50 T5 models, and $5,000 on '07 V50 AWD models that are leased through independent banks.

    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dadof. Volvo is currently only providing lease support on "base" aka stripped V50 models. If you want a nicely equipped V50, you will probably be best off leasing it through an independent bank. Volvo is currently providing a $3,000 cash incentive on '07 V50 2.4i models, $4,500 on '07 V50 T5 models, and $5,000 on '07 V50 AWD models that are leased through independent banks. You should use these cash incentives to negotiate as low a selling price as possible on the car that you want.

    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello Michael. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Let's take a look at the price that you were quoted for this car. A base 2007 Volvo V50 2WD has a spread of a little over $1,700 between its full MSRP and its dealer invoice price PLUS Volvo is providing a special $4,500 cash incentive on leases of this vehicle through independent banks. This gives you a total of at least $6,200 to play with (I believe that there are dealer cash and loyalty / conquest offers out there as well). You were quoted a discount of $7,200 on the V50 that you're interested in. The selling price that you were quoted looks very attractive to me. The lease program looks good, too. If you like this vehicle, I personally don't see any reason not to pull the trigger on this deal.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Quisito. At first glance, the monthly payment that you were quoted for the V50 that you are interested in looks good to me. I would be happy to give you a more detailed analysis of this deal if you let me know what this vehicle's full MSRP and selling price are. It is always a good idea to find out what the selling price of any vehicle that you are considering leasing is anyhow. Let me know and I'll tell you what I think.

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  • I've got two months to burn on my current lease. (payments are 315 per month)

    However, I'm interested in a V50 T5 AWD and the 5K cash incentives are looking really good.

    Had a dealer tell me on the phone this morning that even after the incentive period ends, the adjustment in MF and residuals will mitigate the difference between the current incentive period and what happens next. However, they also can't guarantee anything if I wait or order a car.

    So, my question is, should I lease now and eat my last two payments or order a car and be stuck with whatever Volvo offers after the current incentive pd. is over?

    Kevin in MD
  • volvoscvolvosc Posts: 1
    I have the following offer on the table from the dealership and would like to know if this is a good deal and/or if there's further room to negotiate.

    2007 Volvo S50 2.4i
    Off-black T-Tec interior
    Select and Climate Package

    Original MSRP: 30,560.00
    Selling Price: 25,374.00
    Residual: 14,974.00 (49%)
    36 mth/15000 mile lease
    Customer Cash/Rebate: 700.00
    Inception Fees: 432.75
    Down Payment: 246.54
    Down Payment tax: 20.71
    Assignment Fee: 595.00

    So, considering the lease specials end today (though the dealership said he could also work the same deal Sunday because they can back-date), is it worth it? I'm not so sure I'll actually be driving it 15k/yr, but the difference for the extra 3k/yr was only about $8.00/mth, so why not...
  • dougm92dougm92 Posts: 1

    Did any of these incentives carry over to April? Is there any purchase incentives?

  • stelzerstelzer Posts: 2
    Hello! Looking for the MF and RV on a 2007 V50 AWD T5 automatic in Colorado - Thanks!
  • stelzerstelzer Posts: 2
    Hello - have following offer on lease
    07 V50 T5 AWD
    Barrents Blue
    Premium Package
    Premiun Audio
    Climate Package
    Automatic Trans
    Incl Destination
    MSRP 36575
    Cap 29175
    RV 48%
    Money Factor .002
    Monthly payment - $415.00 + Tax
    Due @ signing 1st payment + Lease Aq fee
    36 mos / 12,000 miles

    Good deal?
  • I know this is a leasing forum, but it seems to be the most active of the V50 forums, so thought I'd try here ...

    I'm considering a T5 or T5 AWD, and can't find any info about current dealer incentives. Any info appreciated !
  • volvobuffvolvobuff Posts: 35
    The incentives listed by Car_man in message #20 above on March 1 were increased $500 by Volvo in April and another $500 in May. The current third-party (i.e. non-Volvo) lease subvention is $5,500 for a V50 T5 and $6,000 for a V50 T5 AWD, plus you can add in another $500 cash conquest/loyalty bonus on either vehicle. Most dealers in my area (New England) are willing to sell V50s at invoice. A third-party lease for a V50 T5 should therefore have a cap cost of $6000 below invoice, and a V50 T5 AWD should have a cap cost of $6500 below invoice. I just closed on a V50 T5 lease at these numbers. :)
  • timmbojtimmboj Posts: 123
    Does anyone have the MF and Residuals for a 24 or 36 month lease at 15K miles per year? Will the values vary with different third-party lease companies?

    The $6500 off that VolvoBuff mentions is very tempting.

    How does one go about finding a reputable third-party leasing company?
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