I just leased in the Boston area. XC70 Adventure Pacakeage with metallic paint.
4 years, 48k miles (still withi warrenty which was fine by me)
MSRP $42090.00 Selling Price $30,200.00 Residual $14,353 (remember this is for 4 YEARS so much lower residual than 3) Money Factor .00207 $999.00 cap cost reduction $300 junky fees/lease inception
$416/month
No one else in the area could touch it and we have a lot of Volvo dealers around I shopped at. Father-in-law bought one to. Hope this helps.
Forgot to mention the $416 included 5% Mass tax. Payment before tax was $398.00. And they threw in lifetime detailing. I got a coupon book for once a year detailing service, including if I buy it out. Doesn't sound like a big deal but wait until they see the dog hair from my shepherd...
Hi mwb2. If you go back in this thread to post #132, you will see some numbers from the host of this board. He was talking about a 36 month lease...I think in June or July. Anyway, here are the numbers he had. I hope this helps. I agree with you, I think you can find a better deal. Someone on this board got a lease of 438/mo x 36 months with a residual of 20,320. That seemed a little better, but it was also located in Mass.
From post #132 "Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 XC70 with 12,000 miles per year are .00150 and 46%, respectively. When negotiating your lease on this model, make sure to take the $5,500 lease cash that is available on it into account. There is an additional $5,000 cash incentive, $10,500 total, for consumers who lease through independent banks."
Keep in mind, if you finace through Volvo Financial you do not qualify for the additional $5000 rebate. You only get that 5k if you finance through a 3rd party bank. 3rd party banks have MUCH MUCH lower residuals and often higher money factors. In my case, the 3rd party bank was about average on money factor and a bit low on residual but the 5k compensated for that. Also, a low residual can be a good thing if you think you may buy out the lease or sell the car yourself for profit and pocket the difference.
DO THE MATH with both-Volvo financial and 3rd party bank!. Good luck...
That's a great deal. Which brings up my question. When I try to establish the price from the cash flows I can't get implied rate to match the money factor or to re-frame it, I don't get the stated price using the interest rate given in the money factor, the same way you'd price a bond, annuity etc. So your deal is implies 4.6%, better than risk-free so obviously a good deal. When I do mine i get 6.7% even though they tell me the money factor is .00259=6.22%. I take out the taxes, only include first and cost reduction part of the initial payment, so what am I missing?
I have a 2001 xc70 that is in great shape and loaded (navigation system, great stereo etc). I bought it secondhand from a car aficionado for $9600 (documentation of every oil change and so on)in January. It has 127k miles on it (mainly interstate) but my mechanic couldn't find anything wrong with it at time of purchase. Fast forward to today: now located in CA I take it in to the Volvo dealer for service and a brake light....the result: a new radiator &1000, inner steering rods $600, bushings $600, rear bar link $ 100, right boot $325, bevel gear $2400 TOTAL $5025!!!!!!
Should I bite the bullet (and maybe drive it for another 5 years with only minor repairs) or should I bite the bullet and lease a 2007 xc70 (and trade/sell my 2001)??? Oh, and I have a 6 month old baby which is why I traded in my solid and oh so reliable Ford Explorer in the first place My fear is I put $5k into the car and then next week the alternator goes...and then the starter...on the other hand, this may be it for big repairs...
I have a 2001 xc70 that is in great shape and loaded (navigation system, great stereo etc). I bought it secondhand from a car aficionado for $9600 (documentation of every oil change and so on)in January. It has 127k miles on it (mainly interstate) but my mechanic couldn't find anything wrong with it at time of purchase. Fast forward to today: now located in CA I take it in to the Volvo dealer for service and a brake light....the result: a new radiator &1000, inner steering rods $600, bushings $600, rear bar link $ 100, right boot $325, bevel gear $2400 TOTAL $5025!!!!!!
Should I bite the bullet (and maybe drive it for another 5 years with only minor repairs) or should I bite the bullet and lease a 2007 xc70 (and trade/sell my 2001)??? Oh, and I have a 6 month old baby which is why I traded in my solid and oh so reliable Ford Explorer in the first place My fear is I put $5k into the car and then next week the alternator goes...and then the starter...on the other hand, this may be it for big repairs...
You're very welcome, thepassenger. I think that the residual values that independent banks use are much more realistic than Volvo Finance's residuals. Manufacturers' captive finance companies, like Volvo Finance, often inflate vehicles' residual values to make the lease payments that they can offer more attractive.
Unfortunately you are correct, unlike conventional loans that one can and should get pre-approved for before negotiating with dealers, most banks that lease vehicles do not deal directly wit the public. If you want to lease, even through an independent bank, chances are that you are going to have to work with a dealer.
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Hi inatightspot. If I was in your situation, I personally would probably be leaning towards trading in the 2001 XC70 and leasing a new one. I am a little biased though because I am a big fan of leasing. I hate to deal with all of the problems that often start to pop up after a vehicle has 100,000 miles on it. There's no guarantee that you will be able to pay the $5,000 for these repairs and be done with it. Something else could pop up in a couple of months. Plus going in for repairs is such a hassle. It's time consuming, you have to arrange for a loaner, etc... I like to lease reliable, new vehicles so that I never have to mess with repairs. That's just me though.
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Hi - I'm new to the boards (hope I'm in the right place!). I'm trying to negotiate a lease on a 2008 xc70. Here's the deal so far: metallic paint; premium package; climate package; 17" Sargas alloy wheels; bi-xenon headlights; USB and iPod Music Interface; mud flaps x 4; Sirius radio prep. MSRP 42,835; negotiated price 38,600 (includes the 1k repeat customer rebate). 30 mos. lease; 12k miles per year; 1k total out-of-pocket at signing (inc. 1st payment+ lease acquisition fee); $519/mo (inc. 9% sales tax). I'm told the money factor is .00120 and residual is 63%. I'm trying to decide b/t the xc70 and an ML350. Is this a good deal? Thanks for your help.
Hi pkbadger, you are absolutely in the right place. By following the disussions on this website, I was able to see what folks all over the country are paying and use that to create a baseline for the deal that I wound up getting on our new '07 XC70. I am sure you are already aware of this, but patience is your best weapon. Car_man will probably be able to give you some good numbers and you can go from there. If you live in a large metro area, you should be able to shop around your price and get it eventually. At the end of the month, someone will bite. Good luck!!
javafan1 - I'm hoping someone comes along soon and comments on both your deal and mine (above), but in the meantime, what's the lease period and how many miles per year? Thanks.
Hi - Still hoping Car Man will stop by (HEY CAR MAN - I'm drowning here!), but in the meantime, I went to another area dealership who tells me that Volvo's money factor went up in November. Trouble is, the deal I set out for comment (above) was in October and the money factor was .00120. The money factor I was given today is .00105. I'm no banker, but isn't that a lower money factor than last month and shouldn't the payment then be lower because of it? BTW, both deals used a residual of 63% for 30 mos./12k miles. Makes me want to buy a horse and buggy!
Welcome to the Edmunds.com forums, pkbadger. You definitely are going about negotiating your lease on the XC70 that you're interested in the right way by focusing on the selling price first. Let's take a look at the selling price that you were quoted. The 2008 XC70 that you are interested in probably has a spread of around $2,900 between its full MSRP and its dealer invoice price. Add to that the $1,175 lease cash that is available on it and the $1,000 loyalty cash and you have a total of just over $5,000 to play with. You were quoted a discount of $4,200. This probably puts you at around $750 over dealer invoice, which is pretty good. Just make sure that the dealer that you are working with uses Volvo Finance's latest 30 month, 12,000 mile per year buy rate lease money factor and residual value of .00105 and 63% to calculate your monthly payment and you're in business.
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Hi javafan1. What is the MSRP of the XC70 that you are interested in? This number will give me an idea of how much of a discount you are being given on it. The XC70 that you are interested in probably has a spread of around $3,300 to $3,500 between its full MSRP and its dealer invoice price. Add to that the $1,175 lease cash that Volvo is currently providing on it and you have a total of $4,475 to $4,675 to play with. If you are a current Volvo owner or lessee, there is an additional $1,000 owner loyalty bonus that you can take advantage of. I am not intimately familiar with what the market is like for the XC70 in your neck of the woods, but if I was in the market for one right now I personally would shoot for a selling price of $500 to $1,000 over invoice. You may be able to get an idea of how much you will have to pay by visiting the "Volvo XC70 V70 Prices Paid and Buying Experience" discussion.
the money factor and residual value that you were quoted look good. They are right in line with Volvo Finance's current program for a 24 month lease of an '08 XC70 with 12,000 miles per year.
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Wife and I are currently looking at an '08 XC70 and I was wondering if anyone could comment on the lease we are currently being offered.
MSRP: 44,255 INVOICE: 41,390 Selling Price: 39,415 Residual: 30978/70% Money Factor: .00121 Term: 24 months $1663 due at signing (refundable security deposit, first payment, admin fee and soem up front taxes) -- this is zero toward cap reduction. Payment: $498/mo includes all fees and taxes. 10500 mi/year
I'm only learning now about leases and it seems to me that the 2k below invoice is a pretty good deal. Add to that the low money factor and it seems like a slam dunk.
However, there are some costs I am not comfortable with: $599 admin fee $585 acquisition fee $395 disposition fee
I asked the dealer to take 400 off the price of the car and waive the admin fee (which I would use as a cap reduction).
This would take my payment for the same car to $455/mo.
He said that he only had 200 left and he would take 100 more off the car.
For me, this isn't about "seeing what's left on the table" but getting the deal I'd like to get.
Car Guy, I would be thrilled if you could let me know what you think of the deal now, as it stands, and advise me as to whether I should push the fee and/or lower price of the car.
Generally are there huge differences in price between the '07's and the new '08's? I got a price in the low $400 last spring and now the prices seem in the $500's....crud. Is it hopeless to think I can get an unloaded, don't want or need all the fancies, in the low-mid $400?
Wow, sounds like the negotitation process is wearing you out. I live out near Cleveland and from what I've found around here, I can't get much of anything off the car. They told me that it has just been out for a couple months and that it's been selling near sticker. It made sense to me. From what I've been reading, Volvo doesn't have as much mark-up in their cars like the domestics. While I had to settle for a higher payment than my last Volvo, it was well worth the price. How did you get down to $519? That $1000 owner loyalty must have gotten you down there. I'd recommend not passing it up if you are that low. I hear that each month residuals change for the worse. Even so, it doesn't really matter when during the month you buy your car. At some point you have to buy and the cost of the car to the dealership doesn't change.
Wearing me out and ticking me off! I'm completely burnt out. Think I'm heading for an ML350 - little change of pace after 6 years in a Volvo can't hurt! But thanks for your feedback!
Darrin - From what I've learned (see the postings by car_man above), looks to me like you really might be getting the car at 200 over cost (invoice minus the 1k loyalty cash and the 1175 lease cash). Not sure what that administration fee is, though. BTW, looks like my dealership has arrived on the forum, but car_man should show up soon with the straight scoop. Good luck!
No prob. I'd check out Consumer Reports before you buy the ML. CR doesn't recommend any Mercedes. Also, get ready to say hello to higher monthly payment.
I'm not familiar with the $1175 lease cash which you mention in your reply to javafan1. Is this available in all regions? (I'm in New York). Does this mean that Volvo is giving me $1175 which I can apply vs the downpayment?
For the past couple of weeks Volvo has been advertising a 24 month lease for $399 a month with 10,500 mi/yr on a 2008 XC70 with premium, climate, metallic paint and dual dvd rear seat entertainment package. They show MSRP as 43575. Cash due at signing is $3443. They call the dvd entertainment package "complimentary".
When the car first came out the lease payment was advertised higher and there was no "complimentary" dvd system, so I am guessing the XC70 is not moving that well in NY.
Also do you have any thoughts on what the money factor and residual would be on this vehicle currently?
I probably sound a lot more scatterbrained than I am, but I found out on Friday that my 04 XC70 lease ended 12/1, and I have to make a decision.
It's with Wells Fargo, and I am able to do one of three things: I can extend my lease for a fee of $100 (then pay the monthly again). I had thought about doing this until the V50 I want comes in, but that's February and I won't certainly be getting any price breaks on a car that is a unicorn in the US. I can buy the vehicle: I asked if they'd give me a better price and without hesitation, dropped the buyout from $23K to $19K plus tax, which LOOKS to be below market. I can drop it off this week.
My mileage on the car is 32500 and I paid for 45000. The car is in fantastic shape with a crack in the rear plastic bumper that will have to be fixed, but the car has been great. I have an extra set of tires, the volvo bike racks, cargo and rubber floor mats, premium audio and xenon/leather/cold weather pkg. So I'm curious if I could sell it above my buyout and retain some $. (no, this isn't an ad!)
I don't really like the 08's but there seem to be some good deals on them but the gas mileage and emissions output on them are reported to be really poor... I see the current customer incentive is $1K and now they are running ads for $369/month for 10K/year on an 08...
Just thought I'd pose the question out there if carman or anyone has any good viewpoint on what the best option is.
Thanks for the additional information, javafan1. OK, so the XC70 that you are interested in has an MSRP of $47,520 and a selling price of $44,890. This selling price represents a discount of $2,600. This car probably has a spread of around $3,500 between its full MSRP and dealer invoice price plus Volvo is providing a $1,175 cash incentive on leases of '08 XC70 models without the entertainment system and $1,600 on models with it. This gives you $4,600 to work with if the XC70 that you are interested in doesn't have the entertainment system and $5,100 if it does. I personally would want a larger discount than the $2,600 that you are being given.
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Hi crestonave. Yes, Volvo is providing $1,175 lease cash on 2008 XC70 models without the entertainment system nationally. Starting in mid-November, Volvo introduced a free entertainments system promotion on the '08 XC70 that provides $1,600 dealer cash instead of the lease cash on models that have this option. You can use these cash incentives to reduce the capitalized costs of the vehicle that you are interested in.
Volvo's lease program for the XC70 varies by term and mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something else. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 XC70 with 15,000 miles per year are .00105 and 53%, respectively.
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Hi tenmiler. It certainly sounds like your XC70 is in good shape. If your purchase option price is less than or equal to what it is currently worth on the open market, I don't see anything wrong with purchasing it at the end of your lease. Even the dealer told you what your vehicle's purchase option price is, you should place a call to the bank that you are leasing it through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking.
Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values".
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I would like to get some information in order to negotiate a price below invoice price in a XC70. Could somebody give me some tips? I see that Darrin got that deal. Any suggestions? Thanks! Luis
Hi Darrin, Any tips on how to get the deal you got. I am planning to go to the dealer this week and start negotiating. Where did you get your car? Any help would be appreciated. Thanks, Luis
I have been working for a month to get the best lease I can on an 2008 XC70. The MSRP on the one I found is around $42,700. The lease is for 48 months, 15,000 miles/yr, adding "Free" DVD, $580 due at signing, and $580 per month. Is this good? I honestly have no idea, but it is much lower than any other dealerships. I need to make a decision in the next couple of days so any help is appreciated. Also we are in the Cincinnati area.
Carman, I really appreciate your reply; tons of info. I did post over at the real trade ins, and have decided that I still want to explore a new lease.
So I'm down to the 08 XC (even though I don't love the engine) and an 07 328xi wagon. And that has to happen tomorrow.
I'm very torn. Thanks for your info on post 183 regarding the DVD system, it sounds like there is some room there to play with the system, and the dealer told me that it was actually "not" free, that it was a dealer rebate, so that makes sense what you said.
Here's what I've been given. Honestly I have to make this purchase tomorrow as the deals all go away, but I'm attracted by 24 month lease of the XC because I could probably live with a less-than-ideal engine/gas mileage for that long:
MSRP: 45755 (Edmunds Invoice $41957), Edmunds MSRP: 45205 (guessing they are adding on here their own prep charges, etc) Dealer's Selling Price: 42049 Residual: 69% MF: .00105 Term 24 Months 12K miles/yr Lease: $526 plus tax
I believe the dealer is applying the $1k owner loyalty cash to cap reduction. I also asked about a bluetooth installation, they want $300 for installation. Wondering if a) the deal above sounds like a good one or if there is more room and b) if it's a decent strategy to work deals on accessory installation like bluetooth. seems there is about a 15% difference btwn msrp and invoice on factory options--is that the same with accessories you buy at a dealer typically?
Thanks much (and I'll be buggin ya over at the 3 series forum too).
Hi Carman, Hoping to get some kind of insight from you if you have a second?
Was told tonight that the edmunds invoice numbers for the XC are incorrect by the Volvo dealer today. really frustrating. anyone able to verify this? he says volvos have a 6% markup. i see a 15% discount when i look at edmunds between MSRP and invoice...
Do you have Jan'08 residuals for the 24/36mo leases with 10K and 15K miles/year? How does this residual is calculated? Is it based to the best negotiated price or on an MRSP? Does the "to dealer" incentives affect the residual value (when quoted as a percentage from the price)? Our local dealer runs an newspaper ad for XC70 '08 (premium, climate, black) 24/10K (0 down) for $400/months with zero down. I downloaded at the spreadsheet from the carbuyingtips.com but I am not sure what MF nor residual to put in.
Hi tenmiler. The pricing data that is available here at Edmunds.com is usually very accurate. I compared the XC70 pricing that is listed here to the pricing at a number of different sources and it appears to be correct. Try stopping by the "Volvo XC70 V70 Prices Paid and Buying Experience" discussion to see if other community members have run into similar situations with this model.
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Hi masaraksh. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 Volvo XC70 with 15,000 miles per year are .00027 and 65%, respectively. The numbers for an otherwise identical 36 month lease are .00116 and 51%. If you were to lease with only 12,000 miles per year, its residual values would be 2% higher. Its 10,000 mile per year residuals are 3% higher. When negotiating the capitalized cost for your lease, make sure to take the $500 cash incentive that Volvo is providing on leases of this model through Volvo Finance into account.
Vehicles residual values are based upon a percentage of their full MSRPs including the destination charge and the MSRPs of any options that can be residualized (usually just factory-installed options). The aforementioned lease cash does not have any impact upon your vehicle's residual value, but it will help you to negotiate a lower selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them.
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Hello ctorrey. According to the latest information that I have seen, Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 XC70 with 10,000 miles per year are .00116 and 54%, respectively. The numbers for an otherwise identical lease of a 2008 V70 are .00112 and 50%. Volvo is currently providing $1,000 owner loyalty cash on both of these vehicles. It has an additional $500 cash incentive on leases of the XC70 through Volvo Finance.
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I'm looking to lease an '08 Volvo XC70 for my wife. Now the local dealer Prestige Volvo in East Hanover in NJ has given me a quote of a Zero Down, 10,500 miles per year, car full loaded except DVD and Navi for $559/month tax included FOR 24 MONTHS. Another local dealer gave me $560/month for the same vehicle. Please let me know if this is a fair price or should I haggle for more money off the monthly price.
pawnbroker - I have worked with a couple very good Volvo dealers in the Tri-State area. Please feel free to email me and I will provide the name and number of the sales managers and assist you with pricing.
Check out the 128 Volvo of Boston - X70 '08, leather, climate, child seats, 10K/year, 24 mo, $399+tax. The ad says that the price includes a $1000 owner loyalty rebate but they will give you this price even if you don't drive a Volvo. Good luck. -ms
This is a link to the ad on their web site www.128volvo.com/specials/new.htm
Comments
4 years, 48k miles (still withi warrenty which was fine by me)
MSRP $42090.00
Selling Price $30,200.00
Residual $14,353 (remember this is for 4 YEARS so much lower residual than 3)
Money Factor .00207
$999.00 cap cost reduction
$300 junky fees/lease inception
$416/month
No one else in the area could touch it and we have a lot of Volvo dealers around I shopped at. Father-in-law bought one to. Hope this helps.
From post #132
"Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 XC70 with 12,000 miles per year are .00150 and 46%, respectively. When negotiating your lease on this model, make sure to take the $5,500 lease cash that is available on it into account. There is an additional $5,000 cash incentive, $10,500 total, for consumers who lease through independent banks."
Enjoy your new XC70!
DO THE MATH with both-Volvo financial and 3rd party bank!. Good luck...
When I try to establish the price from the cash flows I can't get implied rate to match the money factor or to re-frame it, I don't get the stated price using the interest rate given in
the money factor, the same way you'd price a bond, annuity etc.
So your deal is implies 4.6%, better than risk-free so obviously a good deal.
When I do mine i get 6.7% even though they tell me the money factor is .00259=6.22%.
I take out the taxes, only include first and cost reduction
part of the initial payment, so what am I missing?
Should I bite the bullet (and maybe drive it for another 5 years with only minor repairs) or should I bite the bullet and lease a 2007 xc70 (and trade/sell my 2001)??? Oh, and I have a 6 month old baby which is why I traded in my solid and oh so reliable Ford Explorer in the first place
All advice/comments welcome!!!!
Should I bite the bullet (and maybe drive it for another 5 years with only minor repairs) or should I bite the bullet and lease a 2007 xc70 (and trade/sell my 2001)??? Oh, and I have a 6 month old baby which is why I traded in my solid and oh so reliable Ford Explorer in the first place My fear is I put $5k into the car and then next week the alternator goes...and then the starter...on the other hand, this may be it for big repairs...
All advice/comments welcome!!!!
Unfortunately you are correct, unlike conventional loans that one can and should get pre-approved for before negotiating with dealers, most banks that lease vehicles do not deal directly wit the public. If you want to lease, even through an independent bank, chances are that you are going to have to work with a dealer.
Car_man
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I am sure you are already aware of this, but patience is your best weapon. Car_man will probably be able to give you some good numbers and you can go from there. If you live in a large metro area, you should be able to shop around your price and get it eventually. At the end of the month, someone will bite. Good luck!!
I got a quote:
2008 xc70, convenience, climate, premium, blis, adapt cruise control and nav for
MF: 0.00121
Sale price: 44,890
Res: 69%
out of pocket: 3200 tax included (8.625%)
monthly: 537
Is this a good deal ?
Thanks
Car_man
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the money factor and residual value that you were quoted look good. They are right in line with Volvo Finance's current program for a 24 month lease of an '08 XC70 with 12,000 miles per year.
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Great forum.
Wife and I are currently looking at an '08 XC70 and I was wondering if anyone could comment on the lease we are currently being offered.
MSRP: 44,255
INVOICE: 41,390
Selling Price: 39,415
Residual: 30978/70%
Money Factor: .00121
Term: 24 months
$1663 due at signing (refundable security deposit, first payment, admin fee and soem up front taxes) -- this is zero toward cap reduction.
Payment: $498/mo includes all fees and taxes.
10500 mi/year
I'm only learning now about leases and it seems to me that the 2k below invoice is a pretty good deal. Add to that the low money factor and it seems like a slam dunk.
However, there are some costs I am not comfortable with:
$599 admin fee
$585 acquisition fee
$395 disposition fee
I asked the dealer to take 400 off the price of the car and waive the admin fee (which I would use as a cap reduction).
This would take my payment for the same car to $455/mo.
He said that he only had 200 left and he would take 100 more off the car.
For me, this isn't about "seeing what's left on the table" but getting the deal I'd like to get.
Car Guy, I would be thrilled if you could let me know what you think of the deal now, as it stands, and advise me as to whether I should push the fee and/or lower price of the car.
What do you think?
Thanks!!
Darrin
The MSRP 47520.
Thanks for the response.
Javafan1
This is to summarize what I have:
0) 24month 10.5k lease
1) MSRP: 47520
2) MF: 0.00121
3) Res: 69%
4) Tax: 8.625%
5) Current volvo 960 owner: 1000
6) Trade in value :3000
6) volvo cash: 1175
If the sale price is 43500, what is the out of pocket (only 1st payment and fees) and monthly payment should be
Thanks again.
Kuang
Is this available in all regions? (I'm in New York). Does this mean that Volvo is giving me $1175 which I can apply vs the downpayment?
For the past couple of weeks Volvo has been advertising a 24 month lease for $399 a month with 10,500 mi/yr on a 2008 XC70 with premium, climate, metallic paint and dual dvd rear seat entertainment package. They show MSRP as 43575. Cash due at signing is $3443. They call the dvd entertainment package "complimentary".
When the car first came out the lease payment was advertised higher and there was no "complimentary" dvd system, so I am guessing the XC70 is not moving that well in NY.
Also do you have any thoughts on what the money factor and residual would be on this vehicle currently?
Thanks for any help you can provide!
It's with Wells Fargo, and I am able to do one of three things:
I can extend my lease for a fee of $100 (then pay the monthly again). I had thought about doing this until the V50 I want comes in, but that's February and I won't certainly be getting any price breaks on a car that is a unicorn in the US.
I can buy the vehicle: I asked if they'd give me a better price and without hesitation, dropped the buyout from $23K to $19K plus tax, which LOOKS to be below market.
I can drop it off this week.
My mileage on the car is 32500 and I paid for 45000. The car is in fantastic shape with a crack in the rear plastic bumper that will have to be fixed, but the car has been great. I have an extra set of tires, the volvo bike racks, cargo and rubber floor mats, premium audio and xenon/leather/cold weather pkg. So I'm curious if I could sell it above my buyout and retain some $. (no, this isn't an ad!)
I don't really like the 08's but there seem to be some good deals on them but the gas mileage and emissions output on them are reported to be really poor... I see the current customer incentive is $1K and now they are running ads for $369/month for 10K/year on an 08...
Just thought I'd pose the question out there if carman or anyone has any good viewpoint on what the best option is.
Thanks!!
Car_man
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Volvo's lease program for the XC70 varies by term and mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something else. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 XC70 with 15,000 miles per year are .00105 and 53%, respectively.
Car_man
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Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values".
Car_man
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I'm interested in a 24 month lease on the XC70. I won't need more than 12k miles per year.
Thanks!
Luis
Any tips on how to get the deal you got. I am planning to go to the dealer this week and start negotiating. Where did you get your car?
Any help would be appreciated.
Thanks,
Luis
Thank you!
I really appreciate your reply; tons of info. I did post over at the real trade ins, and have decided that I still want to explore a new lease.
So I'm down to the 08 XC (even though I don't love the engine) and an 07 328xi wagon. And that has to happen tomorrow.
I'm very torn. Thanks for your info on post 183 regarding the DVD system, it sounds like there is some room there to play with the system, and the dealer told me that it was actually "not" free, that it was a dealer rebate, so that makes sense what you said.
Here's what I've been given. Honestly I have to make this purchase tomorrow as the deals all go away, but I'm attracted by 24 month lease of the XC because I could probably live with a less-than-ideal engine/gas mileage for that long:
08XC Options: Premium, Climate, Metallic, Convenience, PCC, Dynaudio
MSRP: 45755 (Edmunds Invoice $41957), Edmunds MSRP: 45205 (guessing they are adding on here their own prep charges, etc)
Dealer's Selling Price: 42049
Residual: 69%
MF: .00105
Term 24 Months
12K miles/yr
Lease: $526 plus tax
I believe the dealer is applying the $1k owner loyalty cash to cap reduction. I also asked about a bluetooth installation, they want $300 for installation. Wondering if a) the deal above sounds like a good one or if there is more room and b) if it's a decent strategy to work deals on accessory installation like bluetooth. seems there is about a 15% difference btwn msrp and invoice on factory options--is that the same with accessories you buy at a dealer typically?
Thanks much (and I'll be buggin ya over at the 3 series forum too).
Hoping to get some kind of insight from you if you have a second?
Was told tonight that the edmunds invoice numbers for the XC are incorrect by the Volvo dealer today. really frustrating. anyone able to verify this? he says volvos have a 6% markup. i see a 15% discount when i look at edmunds between MSRP and invoice...
Do you have Jan'08 residuals for the 24/36mo leases with 10K and 15K miles/year? How does this residual is calculated? Is it based to the best negotiated price or on an MRSP? Does the "to dealer" incentives affect the residual value (when quoted as a percentage from the price)? Our local dealer runs an newspaper ad for XC70 '08 (premium, climate, black) 24/10K (0 down) for $400/months with zero down. I downloaded at the spreadsheet from the carbuyingtips.com but I am not sure what MF nor residual to put in.
I would appreciate you help,
masaraksh
Just curious if you had access to Feb '08 residuals & money factors for 2008 XC70 & V70 models. Looking at 36 month/10k leases.
Thanks!
Car_man
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Vehicles residual values are based upon a percentage of their full MSRPs including the destination charge and the MSRPs of any options that can be residualized (usually just factory-installed options). The aforementioned lease cash does not have any impact upon your vehicle's residual value, but it will help you to negotiate a lower selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them.
Car_man
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Car_man
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Rus
This is a link to the ad on their web site www.128volvo.com/specials/new.htm