Volvo V50 Lease Questions

CarMan@Edmunds[email protected] Member Posts: 38,514
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.

Car_man
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  • martyt1martyt1 Member Posts: 6
    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.
    Thanks.
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    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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  • chiquitachiquita Member Posts: 18
    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?
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    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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  • tdi_atltdi_atl Member Posts: 2
    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
  • tdi_atltdi_atl Member Posts: 2
    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 Member 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!
    Tony
  • mattzinzimattzinzi Member Posts: 4
    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!!!!
  • bonhead67bonhead67 Member Posts: 1
    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 Member 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 Member Posts: 90
    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!

    Mary
  • rainesa1rainesa1 Member Posts: 3
    Thanks in advance.
  • sgoreliksgorelik Member 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@Edmunds[email protected] Member Posts: 38,514
    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 Member 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 Member Posts: 11
    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?

    Thanks.
  • mchristsenmchristsen Member Posts: 1
    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
    Michael.
  • quisitoquisito Member Posts: 1
    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....

    Thanks,

    -Quisito
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    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.

    Car_man
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    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.

    Car_man
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    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 Edmunds.com 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.

    Car_man
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    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.

    Car_man
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  • kjenkins696kjenkins696 Member Posts: 27
    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?

    Thanks,
    Kevin in MD
  • volvoscvolvosc Member 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 Member Posts: 1
    Hi

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

    Thanks
  • stelzerstelzer Member Posts: 2
    Hello! Looking for the MF and RV on a 2007 V50 AWD T5 automatic in Colorado - Thanks!
  • stelzerstelzer Member 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?
  • flatcoat2004flatcoat2004 Member Posts: 1
    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 Member 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 Member 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?
  • volvobuffvolvobuff Member Posts: 35
    The best numbers I have found on a 36/12K lease are 47% residual and .00205 money factor. Residual on a 15K lease should be about two points lower.

    Yes, residuals and especially money factors will vary substantially among third-party lessors. It pays to shop around. Current Volvo Financial Service leases are nowhere near competive on the T5 and T5 AWD, which is why Volvo is offering generous subventions for third-party leases.

    You can and should contact third-party auto lessors directly for quotes (check Yellow Pages and Internet), but my experience is that car dealerships offer products from bank subsidiaries such as JP Morgan Chase, US Bank, and Wells Fargo that are very competitive. Such big national bank lessors often offer products only through car dealers and do not deal directly with end customers. The financial manager at your dealership should be willing to provide you with competitive leasing offers from at least two 3rd party lessors plus Volvo Financial Services.
  • timmbojtimmboj Member Posts: 123
    Oh, ok. I didn't realize Volvo would lease through a third-party. I thought I had to do this on my own, and have the third-party leasing company purchase the car.

    Sounds good. Thanks!

    BTW: 2 points lower on the Residual? Or the MF? Or both?
  • volvobuffvolvobuff Member Posts: 35
    Residual. Bear in mind that one percentage point up or down in the residual value makes a substantial difference in your monthly payment, whereas five points or even more on the MF make relatively little impact on your payment. You might want to put all the numbers into an Excel spreadsheet and play around with them, in order to get a feel as to how important the various factors are and what the total cost over the full term of the lease will be.

    BTW (I realize this is off the leasing thread, but...) if you are considering both the V50 T5 and T5 AWD, as I think I recall from an earlier post, you might want to keep in mind that the AWD has a sport suspension, whereas the base T5 FWD does not, although it can be added to the FWD model with the Dynamic Trim Package. I test-drove both models, and the difference is fairly substantial. The V50 ride is very stiff to begin with, and the sport suspension makes it even more so. If handling and AWD traction are your primary concerns and you don't mind a stiffer ride, AWD is the way to go, plus you get another $500 lease subvention, which pays for a good part of the AWD upcharge. If, however, ride comfort and better fuel economy are of more importance to you, the FWD would be the better choice. I opted for the latter.

    Another issue is that if you are planning to buy a car off the lot from inventory, you are much more likely to find a selection of T5 AWD models available. My experience is that most dealers don't seem to want to stock T5 FWD models.
  • timmbojtimmboj Member Posts: 123
    Thanks for the info. Very helpful. I didn't know about the suspension automatically added with the AWD. I want the 6-speed manual, so I'm stuck with the AWD and the stiffer suspension, but I like the AWD, and the suspension will most-likely be ok with me. I'm looking for something sporty, yet utility-ish. But I'll test both just to feel the difference. BTW: what type of fuel mileage are folks getting with a T5 AWD V50?
  • volvobuffvolvobuff Member Posts: 35
    My guess is that Volvo opted not to offer the 6-speed manny tranny on the 2.4i and T5 models because it would have been way too easy to spin the drive wheels on acceleration with the FWD models. Both engines, but especially the T5, seem to have a lot more power and torque than their rather modest HP ratings would seem to indicate. Or maybe I just drive with a very heavy foot...

    If you find the ride on the T5 AWD to be too stiff, you can always mitigate that problem with other tires. The OE Michelin Energy MXV4 S8 tires are really disappointing in both ride and handling; I plan to replace mine with Bridgestone Turanza LS-V tires as soon as possible.
  • lhandelsmanlhandelsman Member Posts: 3
    Hey all,

    does anyone know if the 3rd party lease incentives are still around? How does that work? Do i need to have a lease worked out before I walk in the door or do I tell the finance guy at signing that I want to go 3rd party (after negotiating)?

    And whats the current MF and residual on a 2007 2.4i 48 mth lease? 10K, 12K, or 15k if you know them.

    Thanks!
  • rxkerxke Member Posts: 168
    HI

    What is the money factor and residual value for a V50 in NY with 15K per year and a 36 or 39 month lease. I read in Automotive News that dealers are getting up to $2250 in incentives. I had that confirmed with a salesman.

    Thanks
    RXKE
  • ryanc111ryanc111 Member Posts: 1
    Ok, I hit an elk with my old car so am now in the need of a new car quickly. I live up in the mountains in Colorado and am looking at the 2008 V50 T5AWD. I have a quote from Roaring Fork Volvo in Glenwood Springs as follows:
    MSRP: 38,817
    Cap cost: 33,444
    Total out of pocket: 2,874
    36 months - 15k/year 515/month

    Unfortunately I don't have any of the other details on the loan (residual, money value, details of out of pocket expenses) yet.

    I don't have a lot of time to do much research here - what's the consensus? Is this a fair deal?
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi ryanc111. You hit an Elk with your old car :surprise: . I hope that everyone is OK. I could see where that would do some damage. Interestingly enough, a number of years ago I believe that I read an article about how a manufacturer, and if my memory is correct it was a Swedish manufacturer like Volvo or Saab before they were bought out, that conducted moose crash tests on new vehicles.

    Let's take a look at the deal that you were quoted. You are being given a huge discount on this car, over $5,000. This leads me to believe that the dealer you are working with is running your deal through a bank other than Volvo Finance. Volvo is currently providing a special $4,250 cash incentive on '08 V50 T5 AWD models that are leased through independent banks. When I add this cash to the likely $2,500 spread that this car has between its full MSRP and its dealer invoice price I come up with a total of $6,750 to play with. This probably puts the selling price that you were quoted at around $1,300 over invoice or so. This isn't bad, but it wouldn't hurt to shop around a little bit to see if you can beat this price by a couple hundred dollars if you have the time.

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  • migitymigity Member Posts: 4
    I am trying to work with a local dealer for a l24 month lease with little, to no down. I am looking at the base model, it does have fog lights & moon roof, but not much more. I was asking for a monthly payment in the mid $300's. They came back with $1,500 down and a $414 monthly for 48 months!?!?

    I told them that I did not want such a long term lease and they said that the payments will be a lot more for a 36 or 24 month lease. Is this right? It seems that the residual will be a lot less after 48 months? Are they BSing me here. If not, why are so many attractive lease payments on other cars between 24 and 36 months? Why would this be different?

    Nick
  • zabackzaback Member Posts: 5
    Carman,
    any lease incentives?
  • rumblebumblerumblebumble Member Posts: 7
    Hi,

    In Massachusetts here and trying to get my arms around a potential lease. Do we know what current deals are for this car? I want to be well armed before entering dealer. Thanks.
  • volvobuffvolvobuff Member Posts: 35
    You might want to contact Farrell Volvo in Southboro. I have recently leased two Volvos from them (S40 and V50) and can highly recommend them for excellent lease pricing and straightforward honest no-hassle customer relationships. Can't say as much for the half dozen other Eastern MA dealerships that I contacted.
  • rumblebumblerumblebumble Member Posts: 7
    Great, thanks for the tip. Are they leasing with a volvo program or another bank? Do you know the info on the lease factor, depreciation, volvo subsidy to lease company, etc.?
  • volvobuffvolvobuff Member Posts: 35
    I would gladly pass along the name of my great salesman and sales manager, but this forum does not allow me to do so. Both of my vehicles were special factory orders, including features not available on NA market cars; they were great at going to bat for me with VNA and getting me the cars I wanted.

    They offer leases through Volvo Financial Services as well as US Bank and Chase. US Bank had the best deals by far, both last May, when I got my V50, and last December, when I got my S40. VFS is simply not competitive, plus they require a monthly escrow of your MA excise tax. Lease numbers change from month to month and vary from one model to another, so any info I have would be both out of date and not applicable to your model.

    In general, however, you should negotiate the net sale price first as if you were buying the car for cash outright, expect to get the car for at or close to invoice, and then get the entire current Volvo 3rd party lease subvention deducted from the net price to generate the cap cost used in calculating the lease. If you don't know what these terms mean, you need to do some homework before you go anywhere near a dealership. There are all kinds of creative ways to get screwed on a lease negotiation if you don't know what you are doing -- not that I think Farrell would do that to a customer. Focusing just on the monthly payment is always a mistake. Good luck and happy negotiating!
  • hldsbrghldsbrg Member Posts: 1
    I live in Northern California and am looking for a volvo dealership that is offering a leasing program on the V50's. Does anyone know of any?
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi hldsbrg. Technically, individual dealerships do not lease vehicles to consumers, banks do. You should be able to lease the V50 that you want through any Volvo dealer that you want to. Shop around and go with the one that offers you the lowest selling price. I don't believe that Volvo Finance is currently running a special lease program on this model. If not, then you will probably be better off leasing it through an independent bank. When negotiating your lease, keep in mind that Volvo is currently providing a special $4,500 cash incentive on leases of '08 V50 2.4i 2WD,$6,000 on V50 T5, and $6,500 on V50 AWD models. This cash will help you to negotiate an extremely low selling price.

    Car_man
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  • landrover1landrover1 Member Posts: 15
    Car_man,

    On Edmunds.com the incentives listed are:

    1500 Cash to Dealer start: 01/03/2008 end: 03/31/2008 Where did you get the $6000 amounts?

    Thanks
  • nbmillernbmiller Member Posts: 1
    Car_man-

    I also spoke to my local dealers here in Pasadena, CA about the lease incentives you mentioned in #48. They didn't seem to know of any going on now for the V50.

    Tell me if I'm crazy or not: looking for a 36 month lease, $0 down, 10.5k miles/month on a T5, titanium gray, black leather w/ premium package for under $400 month.

    Seems possible if there are the incentives you say there are.
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi nbmiller. The cash incentives that I mentioned earlier have expired. This quarter, Volvo is only providing $1,500 on the 2008 V50.

    Car_man
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