Volvo XC70 Lease Questions

CarMan@Edmunds[email protected] Member Posts: 38,514
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo XC70. Thanks.

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  • someguy1someguy1 Member Posts: 42
    I am in the market for a new SUV/Wagon.

    I am hoping to get the sept residuals and money factors of 2005 xc70 3 years 15K a year


    Thanks KA
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hey someguy1. You certainly are interested in a number of vehicles. I am curious to find out which one you end up picking and why. Volvo is no longer leasing 2005 models. It replaced its lease support on this wagon with $5,000 dealer cash. Make sure to use this cash to negotiate an attractive lease on the vehicle that you want. You probably can still lease it through an independent bank if you want.

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  • giroscgirosc Member Posts: 5
    I'm turning in my wifes xc70 in april. Has anyone had an experience turning in a volvo lease? I understand they send someone out 30 days prior to end of lease term to inspect the vehicle (i assume this is to allow lessee's to make needed fixes). Are they fairly "by the book" or is there some latitude? Thanks.
  • sweeney4sweeney4 Member Posts: 17
    Can you tell me what the Money Factor and Residual values are on a 2006 XC70, XC90 and v70.

    Thanks
  • rafleiscrafleisc Member Posts: 1
    Turned in an 02 S80 late last year. They are fairly by the book but I suppose it depends on who comes out to look. They actually sent us an end of lease document that detailed what we would get hit for and what we wouldn't. It details the size and depth of dings allowed, interior condition etc. All in all there were no suprises though still wasn't happy paying the extra $.
  • ryanburdryanburd Member Posts: 3
    Hello,

    Just got a lease quote on a 2006 XC70 with Premium Package & Climage Package

    MSRP $40,500
    Initial Cap Cost $28,102 (A-Plan price)
    Adjusted Cap Cost $28,102
    12K miles per year
    Residual $14,985
    Interest 0.0025%
    42-month Term
    $420.03 Monthly payment
    Total due at signing $2,125

    Is this a good deal for A-Plan pricing? I am in the Burlington, VT area. Brand new to this forum and Volvo in general. Any help is much appreciated!!
  • sweeney4sweeney4 Member Posts: 17
    I AM VERY INTERESTED IN LEASING A VOLVO XC70.
    CAN YOU LET ME KNOW THE RESIDUAL VALUE, MONEY FACTOR AND
    ANY INCENTIVES.

    THANKS
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    I;d be happy to help you out, sweeney4. This car's lease program varies depending upon how long you lease it for and how many miles per year you need to be able to drive it. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. These are very common parameters. Let me know if you want something different. Volvo Finance's current buy rate lease money factor for a 36 month lease of a 2006 XC70 with 15,000 miles per year are .00058 and 47%, respectively in most states.

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  • sweeney4sweeney4 Member Posts: 17
    Thank you very much. What would the factors be for 12K miles per year or 10K miles per year.
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    You're very welcome, sweeney4. Volvo Finance's money factors are the same, regardless of how many miles per year you lease with. Your mileage allowance does impact your vehicle's residual values though. Volvo Finance's residual values for leases with 12,000 miles peer year are 2% higher than its 15k residuals. Its residual values for leases with 10,500 miles per year (for some strange reason Ford uses 10.5k miles instead of 10k) are 3% higher than its 15k residual values.

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  • dwhite5dwhite5 Member Posts: 1
    I am in the process of putting together a lease for a 2007 XC70 with the Premium and Climate packages.

    Here are the details:
    MSRP - $40,785
    August Program Cap Cost - $30,220
    36 months
    15,000 miles per year
    Residual - $16,985
    $0 down
    $0 sec dep
    $1,809.04 in drive off(including first month payment)
    $484 per month including taxes

    This seems like a good deal to me, and when I went to another dealer they couldn't come close to it and seemed genuinely confused.

    Any feedback would be helpful.

    Thanks
  • sweeney4sweeney4 Member Posts: 17
    1) The Residual value of the car looks a little low
    2) Check out the news paper, there is a 24 month lease - $359 a month with
    $370 - Security Deposit
    $795 - Bank fee
    $359 - First month
    Plus add in taxes.
  • fazerfazer Member Posts: 1
    I'm exploring a lease on a 2006 XC70 with the premium package, climate package, integrated booster seats and third row seat and am wondering if it's a fair deal. Any help would be appreciated.
    Here are the details:
    1)24 month lease
    2)$33,654 Cap cost
    3)12K miles/yr
    4)$412/month + tax + excise
    5)$2,211 up front w/ 0 security deposit
    6)$24,853 Residual value

    My eyes are starting to glaze over w/ all the numbers. I should also note they will to give me $10,500 as a trade in on a 2001 XC V70 w/ 78k and the transmission needs replacing.
    Thanks!
  • thedrakethedrake Member Posts: 14
    I think you can do better fazer. I just picked up my leased XC70 Monday. This is the deal I got:

    2007 XC70, premiun package, climate package, convenience package, metallic paint, sticker $42,855.

    * 24 month lease
    * $0 down
    * 10,500 miles/yr
    * $338/month (including VCF leasse loyalty $500)
    * $1748 total up front
    * sweet
  • chasen1013chasen1013 Member Posts: 3
    thedrake,

    That is a sweet deal. Can you tell me the name of the dealership? Was the upfront payment for 1st month, security deposit, bank leasing fee, and tags & registration?
    Thanks and good luck with your car.
  • thedrakethedrake Member Posts: 14
    I leased my xc70 from volvoville on LI.

    $1748 total at signing was:
    * first month
    * bank fee
    * tax
    * registration
    * no security deposit as returning VCF customer
    * no cap cost down
  • chasen1013chasen1013 Member Posts: 3
    Your information is 100% accurate. I called the dealership and they have the car I want. The deal they have with Ford Motor Credit is that these transactions can only be with New York residents. While I live in Florida, my daughter lives in Manhattan so she was to go to the dealer and sign the lease. They want my guaranty on the lease and they insist that I come to NY to sign that. Since I don't want to take a weekend to do that, I think I have to look elsewhere.
  • sweeney4sweeney4 Member Posts: 17
    My wife finally decided on VOLVO XC70 - 2007

    I received the following quote,

    339 per month for 24months. MSRP is $41,260 Purchase price is 36,000.
    WHat is the residual value and money factor. WHen I put it into the Calculator my number is higher.
    Due at signing - bank - 795, first month and security.
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi sweeney4. Volvo Finance's September lease program is scheduled to run through the end of today, October 2nd. I can give you an idea of what that lease program is like for this model right now. Feel free to check back with me later on this week and I should be able to give you an idea of what its new October program is like. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 XC70 with 15,000 miles per year are .00201 and 52%, respectively.

    Volvo Finance's lease acquisition fee is currently only $595. It appears as though the dealer that you are working with is trying to mark this fee up a couple hundred dollars to add additional hidden back-end profit to your deal. Make sure to insist upon the base fee.

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  • boomer86boomer86 Member Posts: 1
    I am going to lease a 2007 XC70 in the next week or so. I have one dealer that is saying the Volvo is giving $9000.00 off the price if I lease in Oct. The lease that I have worked out is for:

    2007 70XC $43,000 Price
    48 Month
    15k per year
    2700 down

    $546.00 Per month

    Any Ideas?

    Thanks
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi boomer86. Volvo is providing a $5,000 cash incentive on leases of 2007 XC70 models through banks other than Volvo Finance this month. When this cash incentive is combined with a negotiated dealer discount it would result in a very low capitalized cost. You mentioned the MSRP of the XC70 that you are interested in leasing, but you need to find out exactly what its selling price is as well. That is the best way to see how good a deal you are getting.

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  • sweeney4sweeney4 Member Posts: 17
    I leased a 2007 XC70 loaded with everything.
    THE MSRP was 42,855
    Purchase Price was $36,000 (includes a $3000) rebate
    Money Factor .00001
    Residual 65%

    Do not know if this special is still in place
  • cardinal04cardinal04 Member Posts: 1
    Any idea of what these numbers are for November on a 48 month lease for 12K miles per year?
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Congratulations on your new ride, sweeney4. Thanks for taking the time to share the details of your deal with everyone. Enjoy!

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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Here's the information that you're looking for, cardinal04. Volvo Finance's current buy rate lease money factor and residual value for a 48 month lease of a 2007 XC70 with 12,000 miles per year .00209 and 42%, respectively.

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  • msmcdonmsmcdon Member Posts: 2
    I'm currently looking at a 2006 xc70 with 19,000 miles. The dealer is asking for $32k, and that seems high to me, given the number of miles and amount a car depreciates in its first year, but since there aren't that many used '06's out there, I need some help with finding its true value. Car_man, would it be reasonable to calculate this by using lease calculations based on one year's use, or do you know of other methods? Thanks!
  • doccoloradodoccolorado Member Posts: 7
    Hello, I am looking into 2007 xc70. The lease appears to be a better deal than any "X" plan I can get.

    here is what I know so far,,

    MSRP 42,930
    Cap Cost = 32,921
    residuals are 46% at 36 months, no cash down payment = 497/mo + taxes
    36% at 48 months, no cash down payment = 470/mo + taxes
    I think the money factor is .00225,

    This even with a early buy out penalty sounds better than I can get "X" plan, depending on what I put down, the penalty looks like this:

    $395 + 3 x monthly payment and it's yours,

    I also assume those are low mileage / yr factors, which are fine, since I don't drive more than 10K/year.

    I suspect they are combining the MFG to DEALER $5,000 with something from the bank (Wells Fargo) as this is NOT volvo leasing. Sounds like about $11,200 off of MSRP.

    thoughts?

    Doc
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Greetings msmcdon. Unfortunately, Volvo is no longer providing lease support on 2006 models. As a result, if you really want to lease one you would probably better off going through an independent bank. When negotiating your deal on this vehicle, make sure to take advantage of the $5,250 cash incentive that is currently available on it. If I was in the market for an '06 XC70, I personally would want to get it for close to dealer invoice, minus the $5,250 cash incentive, minus another additional discount for the miles that this car has on it.

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  • msmcdonmsmcdon Member Posts: 2
    Thanks for the reply. Am I correct in assuming, then, that the $5,250 cash incentive applies to used cars and not just new? And how much would you discount for 19,000 miles on an '06?
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    You're welcome, msmcdon. Unfortunately, the cash incentive that I mentioned is only available on brand new cars and demo models. If the 2006 XC70 that you are considering getting has been titled it would not be eligible for this incentive.

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  • dlb126dlb126 Member Posts: 7
    Car_man

    I'm being offered the 9K discount off MSRP as well with a Wells Fargo lease at 48 months, 12,000 miles per year .00249 money and 36% residual. MSRP is 45,159, initial cap cost 34,767.68 -- the dealer is raising the MSRP via the options packages to increase the residual at the end, which Wells Fargo allows. I think I understand that, but wanted to check with you if that made sense.

    Complicated the deal, I'm ending an upside down lease on a v70 early with a trade-in and paying 4K down with a cash cap reduction of $2,998.86 for an adjusted cap cost of 32,563.82. That all comes down to 457.73 base payment with a use tax of 41.62 and a monthly payment of 498.99.

    I think it make sense and gets me out of the v70, into nearly twice the car, with a much better equity position -- plz advise if that makes sense to you.
  • 85dl85dl Member Posts: 1
    Hi:

    I'm looking to trade in my 2001 V70 and to lease a 2007 XC70. I'm wondering if anyone knows what dealer/buyer incentives are currently in place and what residual value % and money factor would apply for a 36 or 48 month lease, 12k annual miles. Is the $5000 dealer incentive mentioned back in October still in effect? Any loyalty perks? Thanks!
  • dlb126dlb126 Member Posts: 7
    I got 9K cash back from Volvo and 2K on my trade - not sure if that still applies, but all indications are that volvo wants to aggressively move volvos out for the new ones. I've never seen 9K incentives on any car before.
  • oldman14oldman14 Member Posts: 1
    Hi. I looked today at a 2007 XC70 with a msrp of 41,000. They offered to set the pirice at 31316 with an adj cap cost of 27313.

    My drive off is 5,000 with payments of 367 per month for 36 months. The Residual is 18851. OK deal?

    Thanks.

    Bob
  • laurawizlaurawiz Member Posts: 3
    Just negotiated a lease deal on 2007 xc70 with all three packages, auto starter and third row fold down jump seat. $596.55 due at signing (this includes 1st month payment). $467.55 per month for 38 months. 12K miles per year. The adjusted capitalized cost is $33,099.92. The MSRP is $42,855 (this does not include the third seat or auto start). Carman, did I get a good deal?

    -Laurawiz
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi Bob. Let me begin by saying that $5,000 is too much money to put down when leasing. I always advise consumers not to make down payments when leasing. I do so because if your leased vehicle is totaled in an accident or stolen and never recovered your down payment will likely disappear. Consumers can and should lease any vehicle that they want without making any sort of capitalized cost reduction.

    Let's take a look at the price that you were quoted for this vehicle. A base 2007 Volvo XC70 has a spread of $2,150 between its full MSRP and dealer invoice price. On top of that there is $2,250 lease cash on this model right now. That gives us a total of $4,400 to play with. You were quoted a discount of $4,000 on the specific vehicle that you are interested in. This looks like a good price to me. Make sure that the dealer you are working with uses Volvo Finance's 36 month buy rate lease money factor of .00116 to calculate your monthly payment and you're in business.

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  • ericflericfl Member Posts: 9
    Car_Man what do you think?

    2007 XC70 prem and comfort packeges

    MSRP 43,659
    Cost 34,658
    Net 37,579
    residual 18,773
    money .00214
    12k miles
    zero down = 483
    1000 down = 451
    tax inc

    Do you think I'm close, I wonder if the 2008 XC70 press release will put more pressure on dealers to move 07's.

    PS. this is a great resource.
  • mjdbosmjdbos Member Posts: 3
    I am considering a lease of a 2007 XC70 for 24 mos and 12k/per year. Not looking for a fully loaded vehicle - basic equipment. In general, what incentives/cash back/rebates should I be looking for from the dealer? On the Volvo.com website, under Incentives, none are listed. I've been reading on this site about several and want to be generally knowledgeable before heading into the dealer. Any feedback on those that have had recent experience or know of these incentives/cash back/rebates first hand, I would be grateful.
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi ericfl. The money factor that you were quoted for this vehicle is higher than Volvo Finance's current money factor for it, so I suspect that your lease is being run through an independent bank. Volvo is currently providing a special $5,750 cash incentive for leases of this car through banks other than Volvo Finance plus $2,750 lease cash and $1,000 loyalty or conquest cash for a total of $9,500. The 2007 XC70 that you described probably has a spread of around $3,000 between its full MSRP and its dealer invoice price. Add this to the incentives and you have a total of $12,500 to play with. You were quoted a $9,000 discount on this vehicle. If you are in an area that has a decent level of competition I would not be surprised if you were able to do better than that. It wouldn't hurt to shop around a little bit.

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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi mjdbos. Volvo is currently providing a $2,750 cash incentive on leases of 2007 XC70 models through any source. You can take advantage of this cash and Volvo Finance's special lease program or you can lease through an independent bank and get an additional $6,750 in cash incentives. Make sure to use this cash to help you negotiate an attractive capitalized cost for your lease.

    Good luck and let me know if you have any other questions.

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  • lungdudelungdude Member Posts: 1
    Hello Car Man,
    We are interested in purchasing an XC70 here in Florida. The Edmund's website lists marketing support of $5000 on this vehicle. There is no mention of the other lease incentives on Edmund's or on the Volvo site. Are these still active? If so, this would total $9500 in savings before the cap cost is even negotiated, correct? How does the marketing support amount fit into the picture?
    Thanks in advance for your response .
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hello lungdude. Volvo is currently providing a $3,000 cash incentive on leases of the 2007 XC70 through Volvo Finance, a $9,500 cash incentive on leases of it through independent banks, and $5,000 on cash purchases of it. Negotiate the lowest selling price that you can on the XC70 that you want and then have the dealer subtract any cash incentives that you are eligible for from it.

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  • joewerthjoewerth Member Posts: 1
    Hi car man.
    Do you know when the $9,500 cash incentive on leases through an independent bank expires on the XC70? Thanks.
  • handelbobhandelbob Member Posts: 3
    Hi ALL. First time post, and this looks to be an invaluable resource. As of May 16 2007 curious if the same incentives apply from 4/27 Car_man post? I've been speaking with an "overseas delivery" broker who has advantagious deals that are described on the website plus an additional % discount, although in viewing what has been described, I'd consider going into a dealer. I'd like to be armed with the latest and greatest "deals". Once I get his quote in writing, I'll post it for comparison purposes.

    thanks
  • meshugymeshugy Member Posts: 24
    Hi Everyone...glad to find this forum!

    I've been shopping for a V70, but there are very few in the Seattle area. XC70s seem to outnumber them 20 to 1, and most of the dealers seem overstocked with them and are willing to deal. So even though I don't need all wheel drive, it looks like I'll be getting an XC70.

    I'm look at leasing a premium 2007 XC70. The deal is:

    Cap: $29,200
    $2100 due at signing (applied to 1st month payment)
    All fees waived: deposit, cap cost reduction, taxes, ect)
    12K miles a year
    Payments $379 a month.

    Sounds like a good deal, especially if they'll lower the cap cost a few K.

    Car_man and company what do you think? What are the current Volvo incentives?

    BTW, they say that "All leases exclude tax with the option to purchase at the end of term." Every lease I've seen has tax worked into the monthly payment. How can they exclude it?
  • masarakshmasaraksh Member Posts: 8
    Hi meshugy,

    Is it a 36 month lease? What is the residual on the car and a breakdown on the due at signing amount ($2100)?

    Thank you.
  • meshugymeshugy Member Posts: 24
    Yes...it's 36 month. I'm still waiting for a few details from the dealer. But they said the residual should be about $20K. It's getting to the end of the 2007 model year, so you get lower residuals. That's what I want, since I'll probably buy the car after the lease.

    The $2100 covers all the fees:

    License fee: $185
    Doc Fee: $35
    Cap cost reduction: ?
    First month payment: $411

    I also found out that they monthly payments don't include tax, so you'd actually be paying $414 a month, not $379

    Still a pretty good deal. If you calculate the cost to buy at the end of the lease it comes to: $37,04

    36 payments of $414: $14,904
    Down payment: $2,100
    Residual: $20,000

    Total: $37,04 (did I miss something?)

    If you bought a new XC you'd be paying around $39-43. Seems like a good deal to lease/buy.
  • meshugymeshugy Member Posts: 24
    After haggling with dealers all day, I came up with this deal:

    2007 XC70 with climate, convenience, and premium packages

    Term: 36 months
    MSRP: 42,950
    Cap: 30,950
    Residual: 18,039
    Down: 900 (includes 1st payment and all fees)
    Monthly payment: $517 (includes tax)
    Miles: 12000

    This seems to be the best I can get....looks like a good deal. If I buy the car after the lease is up I've paid
    $37,551. This same car would cost $42K if you flat out bought it.

    What do people think?

    One dealer told me the lease incentives are so good right now that people are leasing cars and then just breaking the lease a few months later and buying the car. The penalty is often only $1800. So you still get a good deal...
  • meshugymeshugy Member Posts: 24
    I ended up with a better deal today and drove home a new XC70. Nice!

    Here's what I got:

    XC70 with climate, convenience, and premium packages. Also had the air quality option and is wired for a sirius radio and an ipod. They also threw in a free 36 month service package and cross bars for the roof rails.

    Term: 36 months
    MSRP: 43,950
    Cap: 31,250
    Residual: 18,149
    Down: 750 (includes 1st payment and all fees)
    Monthly payment: $510(includes tax)
    Miles: 15000

    I'll probably buy the car at the end of the lease. Comes to $37,259. They also hit you with a $500 if you buy it at the end. But I should be able to negotiate the residual price down quite a bit. Could come out a few thousand lower in the end.

    This was the best deal of 6 dealers....required a massive amount of haggling. The dealer claims that he made almost nothing. Not sure I believe that, but it does seem fairly competitive.

    Overall, a pretty good deal for a new XC. I'd like to know what sort of deals other people got
  • tenmilertenmiler Member Posts: 26
    My 2004 XC70 lease is coming to an end at the end of August. So as a lease newbie I'm trying to weigh my options. Any advice would help!

    I paid for 15K miles/year for a total of 48785. However, I will likely end the lease 20-22K UNDER that. I don't know that it means much more than I overpaid/overestimated my use, but it makes me wonder if I should consider buying the car at the end of the lease and reselling it with it's low miles. My purchase option is 22082.50 (including the $500 charge)

    My 04 XC Came with the premium package, the Audiomax package, Xenon, Booster seats.

    Gross Capitlaized 35468.26
    -Capitalized cost reduction--paid up front (3016)
    = Adjusted Cap. Cost = 32452.76
    -Residual value: 21582.50
    =Depreciation/amortized amounts: 10870.26
    + Rent Charge: 4783.74
    =Total base of monthly payments: 15654.00
    x 39 months with $11.64 sales tax = $413.02

    At the end of the lease I will have paid $19615.74

    I'm interested in the V50 this time around, but not likely the 2008 XC or a 2007 XC. But I"m also checking out the Mazda CX7, The Audi a4 wagon, and maybe the BMW 325ix wagon. It's been a fantastic car for me!
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