The whole point of a lease is to keep money in your pocket and how can you do this if you are donating money to the car dealers FU money fund?
While I don't advocate putting money down on a lease, it is for an entirely different reason. What you are stating is just not true. Whether you lease or finance, you are borrowing money from a lender and paying interest on that money. Someone who puts money down as a cap cost reduction on a lease is merely avoiding paying interest to the lender on that money. The overall cost of the lease will be less than if they put no money down at all. It is not being thrown away, as you suggest.
To use your analogy, YES, I would put money down at a hotel if it lowered my overall cost of staying there. For instance, you pay $100 per night for 6 nights for a total of $600, or you pay $300 up front and $40 per night for a total of $540. Where is the downside to the latter arrangement?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Hi aeropostel. It is in your best interest to put as little money as possible down when leasing. Consumers who make large capitalized cost reductions on leased vehicles are at risk of losing them if their vehicle is totaled in an accident or stolen and never recovered. You would be better off going with a $0 down lease on the S40 that you want.
I haven't worked up any lease payments on this car lately, but I suspect that your $250 target monthly payment is a little optimistic. This car will likely cost more to lease than that. Volvo is not currently providing any lease support on the S40, so if you were to lease one right now you would be best off doing so through an independent bank. Volvo is currently providing a special $1,500 cash incentive on leases of this car through banks other than Volvo Finance. Make sure to take this cash into account during your negotiations.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
Consumers who make large capitalized cost reductions on leased vehicles are at risk of losing them if their vehicle is totaled in an accident or stolen and never recovered.
Of course, the same holds true of financing, yet nobody warns against that. *shrug* I think your second statement is correct ... don't put down a LARGE cap cost reduction. But the earlier statement in your post, "put down as little as possible," is open to debate.
I agree with as little cap cost reduction as possible when the money factor is so low as to justify borrowing as much as possible.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
With a purchase, you have the same risk whether you make a large downpayment down, or not.. If you pay $30K, and total it right away, your insurance will likely pay you $25K, no matter what you owe on it. Put down nothing, or $10K your loss is still the same..
At least with a lease, you have the option to not put that money at risk.. Totaling a new lease with a $4K cap reduction will likely put you $4K in the hole for just a couple of months... Without the $4K down, that money isn't at risk.. (assuming your lease has GAP).
just my $0.02.. kyfdx Host-Prices Paid Forums
EDIT: I think my first paragraph makes your point.. Any time you purchase, you have money at risk.. Just no point in taking on that same risk with a lease, when it is unnecessary...
You can have GAP on a finance, too. So, really, if your goal is to have the least money at risk, then you should always carry GAP and never put money down, regardless of financing or leasing.
however, it seems people don't take that stance. Popular opinion seems to be putting down as much as possible when financing, yet nothing when leasing. Its contradictory, as far as I can see.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Hello again Carman! I am turning in my s60 and s80 leased cars(FINALLY!) for one car and am looking at the S40 and C30, primarily to save money but stay with a Volvo for the safety. (And I love driving a Volvo )With all the bad economic news, what are the current lease and buy deals in my area? I am in Ct.and can use the COSTCO auto buyers program
The one dealer phone call I have had so far mentioned lots of different numbers.(What a surprise) Of course, he immediately told me the best deal is on a move from an s60 to s80, even though I asked about an S40 and C30... S80 #'s: $7,250 discount non VCF lease $1,000 rebate(?Why?) $500 COSTCO program discount =$8,750 Off INVOICE? Can that be right? But, on a approx $40,000+ car I am still at 32K and a Mo. pymt around low 4's incl. tax.
I tried to get some S40 #s , as I had asked for. Nothing yet.
The C30 he mentioned at $ 23,718 as a starting price,$750 purchase rebate or $1750 lease rebate, no more details than that. So, QUESTIONS: :confuse: What numbers can I expect for the S40 and C30 ? RV is important as I am still considering buying this car-now or off-lease. :confuse: Any info on the safety of the C30? Any Volvo loyalty I can take advantage of? Is the COSTO program worth using for Volvo?
Once again, your insight is appreciated -and VERY helpful knowing these things before the first sit-down...
Hi s60leaser, or should I say C30leaser . Volvo Finance is not currently running a special lease program on either the S40 or C30. As a result, if you were to lease either of them you will have to do so through an independent bank. The good news is that Volvo is currently providing special cash incentives on these cars when they are leased through independent banks. Specifically, Volvo is providing $1,750 on the 2008 C30 1.0, $2,250 on the C30 2.0, and $1,500 on the S40.
The CostCo car buying program might save you some hassle if the dealer that they steer you towards is straightforward, but I very much doubt that it will provide you with a deal that's any better than what you could negotiate on your own.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
Hi paulsaz. Volvo is not currently providing any lease support on the 2008 S40. It does have cash incentives on it though. In addition to the $500 gas allowance that you mentioned, Volvo is providing $1,500 dealer cash on the '08 S40 this month. The '09 model has the $500 gas allowance and $500 dealer cash.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
Asked for general numbers on a 2009 S40 2.4i with leather and climate and was told $389/mo, $2500 upfront for 36 mo, 12k/yr. I know I need to get a sales price, money factor and residual numbers but does this sound like a reasonable start? I got spoiled by my 2007 A4 lease which was 0 down and $410/mo but it's up in December and I've started looking around at other options. Thanks
Just to give people an idea on some numbers... On a non metallic paint 09 S40 with leather 48/12 with 2,000 out of pocket 299+tax is a "big loser" for a dealer and a very good deal for a customer. Costco and Loyalty do not apply to neither S40 nor C30.
Hi Car_Man, I'm shopping entry-level luxury sedans and don't see any recent info on the Volvo S40 Lease Rates. Do you have that info?
I see they're running a special on the website for 299/mo, 36 mos, 10.5K mi/yr with 2K down. I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.
Is it realistic to think I could negotiate with Volvo to keep the monthly payment below $300 with only first payment down? Thanks for your help!
I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.
Ya know, I never quite understood this. The same thing would happen if putting money down on a financed car, so what is the difference?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Hmmm... still not quite adding up for me. I mean, I understand your point that GAP is extra on a finance, but we're talking about very little added cost. Really, it is less than the typical inception (bank) fee on a lease. And, certainly, the cost of GAP on a finance is far less than you would lose if you put a big chunk down and total the car in the first year.
The only reason that makes sense to me is to take advantage of super low money factor. But the same applies to special financing rates. In either of these cases, I'm all for borrowing as much as is allowed.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
When you put money down on a lease, that's money directly out of your pocket that won't be rolled in to the value owed on the car if it were to get totaled. So, when my car was deemed a total loss a few weeks ago I automatically stopped paying the payments on my car and owed nothing more, but everything I had already spent on the car (down payment + all 5 monthly payments) will not be reimbursed by the insurance company.
GAP insurance does not cover what you have already spent. Instead, gap insurance is to cover the difference between the pay-off value of the car (what you would have had to pay the the finance company to buy the car the day of the crash, which is essentially what your insurance agency does) and the current market value of the car (deemed by your insurance agency through their own research). Many times, lease holders end up being upside-down on their leases (meaning the current market value is less than what the finance company is owed for the pay off). This is why Gap Insurance is definitely a good idea. I was lucky enough to have had it in my lease and to have actually had a slightly higher current value than pay-off value so I didn't have to use it:)
If you finance or own a car, then all the money that you put toward it is taken away from your total selling price and whatever money you get back from the insurance company is your's to keep and put toward another car.
On the car I totaled, I put about $650 down...which I thought was not a lot of money and I thought it would eventually be amortized through the course of four years. However, since my car was totaled in less than 5 months of driving it, I basically am out an extra $650 (or, for those of you who see cars through monthly payments, that breaks down to the fact that over the short period of time I had my car I was paying about $500/month rather than $350/month I negotiated).
On another slightly related note, unless you are always putting the same amount down, it's hard to compare the rates you are getting on each car. At least, in my opinion.
Sorry for the lengthy explanation, hopefully that makes more sense!
Hi mikeut2k3, I contacted one dealer via email and asked for his best offer since I have to make a decision by Saturday and am ready to move. He came back with a quote of $329/month + tax with 1K down right off the bat (36mos/12k). I'm going in tonight to see the car and try and grind it down some more Unfortunately, I don't qualify for the loyalty cash back, but that could be another 1K off!
HOWEVER, my point is ... let's take a theoretical example. You put $650 down and lost it. If you had financed the car and put ... oh, let's say $2k down, and you purchased GAP insurance, you'd be out $2k right now because the car easily depreciated that much.
So what I'm saying is, I don't see how putting more money down on a finance is any less risky than putting it down on a lease.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I don't think anyone is arguing that.. (though, I might have missed it.. ).
It's just riskier putting money down on a lease, than not putting money down on a lease..
On most leases, nullifying that risk is virtually free... Which can't be said of purchases.. (though, that's not what we are discussing here... in the lease questions forum... I think.. ).
I guess I'm thinking the argument is being implied. ;b
When folks say things like "on a lease ..." and, really, my point is it applies to both lease and finance. So the lease, with regards to gap and a totalled vehicle, works no differently than a finance. You just need to buy the insurance with the finance while it comes automatically with the lease. And, no, I wouldn't say its "free" with the lease thanks to the fees.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I don't know.... I consider it "free", when it's included, because I'm not going to pay extra for it, if it's an option... (disclaimer: never leased from a bank that didn't include it).
Not on a purchase, either.... My insurance company guarantees fair value for my car, if it's totaled... That means the amount has to cover getting a comparable vehicle.... So.. even if the car is only worth $X, and I owe $X+$1000, $X will replace my car, so I'm even.... What I owe doesn't really have anything to do with how much my car is worth.
But, on a lease, I may not be able to replicate the lease terms on another car... So, I can actually lose money without GAP.
I went in to Volvo last night...not good news. The $299 deal they are advertising is pretty much it. They were genuinely trying to do better for me and they basically came back and apologized that their bank (nor any others they checked) allowed them to do any better. Especially since that deal they are advertising is ALREADY including the $1k loyalty bonus. So, they could match the loyalty bonus for me, but basically bottomed out around there.
Probably could have horsetraded a bit with them and done less down, but they let me walk out the door when I asked for $285/month + tax and 1K down (they wouldn't even counter, and explained to me the above).
Hi shop4cars1. I do have the info that you're looking for. Volvo's lease program for the S40 varies by trim level, term, and mileage allowance. You never mentioned what any of these variables are, so for now I am going to have to make some assumptions. Let me know if you want something different.
Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 2.4i (not a stripped model) with 10,500 miles per year are .00106 and 48%, respectively. In addition to this special money factor, Volvo recently enhanced its lease cash on this car to $1,553. Make sure to take this cash into account when negotiating its selling price.
This lease program is scheduled to run through March 31st, though it would not surprise me in the least if Volvo made an unscheduled revision to it at some point over the next couple off days.
You are smart to want to go with a zero down lease. It is always in lessees' best interest to put as little money down as possible. Like most manufacturers' official advertised payments, I suspect that the S40 payment that you mentioned leaves a little meat on the bone so to speak. If I was in the market for an S40 right now, I personally would shoot for a selling price of a couple hundred dollars over dealer invoice minus the aforementioned cash incentive. You ccan look up the exact invoice price of the car that you want over in the New Vehicle Pricing section of Edmunds.com.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
Hey Mike. Please see my previous post for the information that you're looking for. Good luck in your quest for an S40 andn let me know if you have any other questions.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
I have an offer to trade in my old Ford Explorer that has engine issues for a new 2009 S40 - promo model. Nothing fancy-no navi, no rims, no extras.
The offer I've got on the table: 500 Down in addition to my trade in 15k miles per year 300 clean a month - inclusive of tax
What do you think? They have 3 models of the car that I want, so I'm assuming I have some time. The problem I'm running into is that they too are saying the lending department will need a co-signer due to my credit history having only 1 paid off car long of under 10k.
I would like to process the loan independently... but that's the story they are sticking to, with their lending instutiions. They said they checked with US Bank, their own lending dept and Ford. Ford was the only approval for me.
Any information that might help would be greatly appreciated!
Hi elisco. The trade-in issue clouds things a little big. Do you owe money on your Explorer? If so, is the dealer giving you more for it as a trade than you owe?
The best way to evaluate how good a deal a lease is is to take a look at the selling price that the deal is based upon. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is difficult to tell how much of a dealer discount you are being given. You wouldn't finance a new vehicle without knowing its price. Leasing without knowing the selling price is sort of the same thing.
Find out what this car's MSRP and selling price are and I'm sure that either myself or another knowledgeable community member will be happy to tell you what we think.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
Anyone have any data on Lease deals for a S40 R-line? Also, do you think I have any leverage if we are interested in getting two cars? My wife is interested in a used XC90 (such good deals) and I'd obviously like the S40R. Still haven't decided if AWD is worth the extra cash or not, but I definitely want the R.
Does anyone have the current #'s for a S40 basic ? Looking for 10k miles (or whatever the minimum is ) for 36mos
I was at a dealer last night and he said only US Bank is doing the financing - that Volvo has poor #'s. US Bank was showing a 37% residual and a .002875 money factor...
Hi mel10021. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2009 S40 with 10,000 miles per year are 00266 and 49%, respectively.
There is a good chance that you will be able to get a better payment on this car by leasing it through a bank other than Volvo Finance. Volvo is currently providing a special $4,500 cash incentive on leases of this car through independent banks.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
I just left San Diego Volvo and they were advertising a lease on a new 2009 S40, MSRP $29375, 60 month lease @ $269 plus tax, $2995 total down, 12,000 miles/year, $0.18 per extra miles. They also have a 5 year warranty with scheduled maintenance including wear items like tires.
This sounds like a great deal and I have a Cash-For-Clunkers car to handle the money down. What are the numbers they're using? Is a 60 month lease better than purchasing? My credit union's rate is currently at 5.49%
Hello. Newbie here. I was wondering if anybody can explain the current lease offer for the S40 please. It says 299 per month, 3300 down for a car that is at MSRP 29,350. Would it be a lower lease rate per month of one is able to negotiate the MSRP down? Or is that absolute, all discounts and credits included?
Specifically, there is an S40 that's $30,050 and I asked to get this at a lease rate lower than 300 per month, including taxes. The salesman said that they cannot give this car at that special since it's a higher MSRP than the advertised MSRP. I thought that I can negotiate the MSRP to a lower price, and then they calculate the lease rate from there?
Thanks a lot! Sorry, I guess I'm supposed to go through the other threads, but I'm desperate and will need to get something before next week.
Hi meyanbarredo. Volvo's advertised lease payment for the 2009 S40 is not based upon full MSRP. It already assumes some sort of dealer discount. If you are able to negotiate a larger discount on the car that you are interested in than the one that is being used to arrive at the advertised payment, which is likely, your monthly payment would be lower...at least before sales tax is added in.
Be careful with Volvo leases though. Volvo is pretty tricky. They usually have special lease money factors through Volvo Finance on "Base" models that they use to advertise an unrealistically low monthly payment. The addition of any options makes a car ineligible for this special money factor. If you want to lease a car that has additional equipment, you may end up having to do so through an independent bank and use the special cash incentives that Volvo is providing on that sort of transaction.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
Hi meyanbarredo. The best banks to deal with when leasing are either manufacturers' captive finance companies, or in the event that an automaker does not have their own bank the bank that they choose to run their lease specials through, such as Chase or US Bank. Unfortunately, the banks with the most attractive lease programs on vehicles rarely deal directly with the general public. You will have to go through a dealer to take advantage of their attractive lease promotions.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
The Volvo website is advertising $3000 "allowance" for a S40 2.4i. In addition, the current incentives I found online include $4250 Alternative Lease Assistance cash for the 2010 model plus $1250 dealer support ($3750/$3000 for 2009 model).
I know that sometimes incentives are regional (I live in CT), or cannot be combined with other deals, but I can't find any language that restricts it.
Is this for a specific model within the S40 family, or a model with restricted equipment? If not, at first glance, it appears we can lease a $30k car for 60 months @12k miles for about $300. Plus have the car under bumper to bumper warranty with free scheduled maintenance.
Hi yingxiong. The $3,000 allowance that you have seen referenced on Volvo's website is for 2009 S40 models. The $1,250 is on 2010 S40 models. Naturally they cannot be combined.
Volvo is providing an additional $4,250 "Alternative Lease Assistance" cash incentive on the '09 S40, but in order to take advantage of this cash you must lease this car through a bank other than Volvo Finance. If you really want to lease, you would be better off passing on the extra cash and going with Volvo's official lease program.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
I am torn between leasing a 2010 S40 T5 AWD R-Design and an Audi A4 Premium Plus Quattro.
I have a 2007 S40 T5 AWD and loved it. Here are the lease options I have negotiated so far for the car with metallic, cold weather pkg and multimedia pkg:
MSRP= $34,650 Cap cost= $27,850 Months MF Resid Up Front Monthly 36 0.00237 15246 1572 497.48 39 0.00237 14553 1561 485.36 48 0.00237 11781 1547 471.57
What do you think of these terms?
I need to order the car soon from the factory as I am very particular with the exact configuration that I want and they are willing to order it that way. My current lease ends 1/1/10 and the Volvo Safe and Sound Package (extended warranty to 5/60k and covered maintenance) ends 12/31/09, so I need to order soon.
Thanks a bunch! You were helpful in all of my previous car leases/purchases, and I have come to trust your advice.
Or how about leasing an Infiniti G37 for that kind of money? Or a Genesis. Or a C-class. Or... well, probably alot of other nicer cars. Nothing against the S40, of course, but it just doesn't look so appealing at $500/mo.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Thank you for your opinion, but my question was about leasing a S40, not purchasing any other model or even an S40. Besides, even at an unrealistically low interest rate over a 48-month buy, the montly payment is $150 more a month, which is not what I am willing to absorb. Thus, my decision to lease in the first place.
If anyone has any insights to the LEASE terms for the S40 outfitted as I indicated, I would appreciate it.
Obviously I posted on the "Volvo S40 lease" forum to compare against other S40s. If I wanted opinions on other models, or on purchasing, I would have posted on the appropriate website(s).
If anyone other than someone who doesn't understand leasing who is prowling the forums looking to cause trouble and provide useless feedback has anything useful to add, I would appreciate it.
Comments
While I don't advocate putting money down on a lease, it is for an entirely different reason. What you are stating is just not true. Whether you lease or finance, you are borrowing money from a lender and paying interest on that money. Someone who puts money down as a cap cost reduction on a lease is merely avoiding paying interest to the lender on that money. The overall cost of the lease will be less than if they put no money down at all. It is not being thrown away, as you suggest.
To use your analogy, YES, I would put money down at a hotel if it lowered my overall cost of staying there. For instance, you pay $100 per night for 6 nights for a total of $600, or you pay $300 up front and $40 per night for a total of $540. Where is the downside to the latter arrangement?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I haven't worked up any lease payments on this car lately, but I suspect that your $250 target monthly payment is a little optimistic. This car will likely cost more to lease than that. Volvo is not currently providing any lease support on the S40, so if you were to lease one right now you would be best off doing so through an independent bank. Volvo is currently providing a special $1,500 cash incentive on leases of this car through banks other than Volvo Finance. Make sure to take this cash into account during your negotiations.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Of course, the same holds true of financing, yet nobody warns against that. *shrug*
I think your second statement is correct ... don't put down a LARGE cap cost reduction. But the earlier statement in your post, "put down as little as possible," is open to debate.
I agree with as little cap cost reduction as possible when the money factor is so low as to justify borrowing as much as possible.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
At least with a lease, you have the option to not put that money at risk.. Totaling a new lease with a $4K cap reduction will likely put you $4K in the hole for just a couple of months... Without the $4K down, that money isn't at risk.. (assuming your lease has GAP).
just my $0.02..
kyfdx
Host-Prices Paid Forums
EDIT: I think my first paragraph makes your point..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
You can have GAP on a finance, too. So, really, if your goal is to have the least money at risk, then you should always carry GAP and never put money down, regardless of financing or leasing.
however, it seems people don't take that stance. Popular opinion seems to be putting down as much as possible when financing, yet nothing when leasing. Its contradictory, as far as I can see.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I am turning in my s60 and s80 leased cars(FINALLY!) for one car and am looking at the S40 and C30, primarily to save money but stay with a Volvo for the safety. (And I love driving a Volvo
The one dealer phone call I have had so far mentioned lots of different numbers.(What a surprise) Of course, he immediately told me the best deal is on a move from an s60 to s80, even though I asked about an S40 and C30...
S80 #'s:
$7,250 discount non VCF lease
$1,000 rebate(?Why?)
$500 COSTCO program discount
=$8,750 Off INVOICE? Can that be right?
But, on a approx $40,000+ car I am still at 32K and a Mo. pymt around low 4's incl. tax.
I tried to get some S40 #s , as I had asked for. Nothing yet.
The C30 he mentioned at $ 23,718 as a starting price,$750 purchase rebate or $1750 lease rebate, no more details than that.
So, QUESTIONS: :confuse:
What numbers can I expect for the S40 and C30 ?
RV is important as I am still considering buying this car-now or off-lease. :confuse:
Any info on the safety of the C30?
Any Volvo loyalty I can take advantage of?
Is the COSTO program worth using for Volvo?
Once again, your insight is appreciated -and VERY helpful knowing these things before the first sit-down...
The CostCo car buying program might save you some hassle if the dealer that they steer you towards is straightforward, but I very much doubt that it will provide you with a deal that's any better than what you could negotiate on your own.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Never make a downpayment on a lease.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
I got spoiled by my 2007 A4 lease which was 0 down and $410/mo but it's up in December and I've started looking around at other options.
Thanks
starting price: $5250 under invoice
term: 36 mos
residual: 40% (with 12k mileage)
money factor: .00240 (tier 1 credit)
i didn't push them as i'm also working on a purchase of a certified pre-owned but this didn't seem attractive at all
I'm shopping entry-level luxury sedans and don't see any recent info on the Volvo S40 Lease Rates. Do you have that info?
I see they're running a special on the website for 299/mo, 36 mos, 10.5K mi/yr with 2K down. I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.
Is it realistic to think I could negotiate with Volvo to keep the monthly payment below $300 with only first payment down?
Thanks for your help!
Ya know, I never quite understood this. The same thing would happen if putting money down on a financed car, so what is the difference?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
A lease offers you the opportunity to avoid that with included GAP insurance (for most makes).. For most auto loans, this is an extra-cost item...
So, why take the risk on a lease, if you don't have to?
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
The only reason that makes sense to me is to take advantage of super low money factor. But the same applies to special financing rates. In either of these cases, I'm all for borrowing as much as is allowed.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
When you put money down on a lease, that's money directly out of your pocket that won't be rolled in to the value owed on the car if it were to get totaled. So, when my car was deemed a total loss a few weeks ago I automatically stopped paying the payments on my car and owed nothing more, but everything I had already spent on the car (down payment + all 5 monthly payments) will not be reimbursed by the insurance company.
GAP insurance does not cover what you have already spent. Instead, gap insurance is to cover the difference between the pay-off value of the car (what you would have had to pay the the finance company to buy the car the day of the crash, which is essentially what your insurance agency does) and the current market value of the car (deemed by your insurance agency through their own research). Many times, lease holders end up being upside-down on their leases (meaning the current market value is less than what the finance company is owed for the pay off). This is why Gap Insurance is definitely a good idea. I was lucky enough to have had it in my lease and to have actually had a slightly higher current value than pay-off value so I didn't have to use it:)
If you finance or own a car, then all the money that you put toward it is taken away from your total selling price and whatever money you get back from the insurance company is your's to keep and put toward another car.
On the car I totaled, I put about $650 down...which I thought was not a lot of money and I thought it would eventually be amortized through the course of four years. However, since my car was totaled in less than 5 months of driving it, I basically am out an extra $650 (or, for those of you who see cars through monthly payments, that breaks down to the fact that over the short period of time I had my car I was paying about $500/month rather than $350/month I negotiated).
On another slightly related note, unless you are always putting the same amount down, it's hard to compare the rates you are getting on each car. At least, in my opinion.
Sorry for the lengthy explanation, hopefully that makes more sense!
I know we could do better.
I contacted one dealer via email and asked for his best offer since I have to make a decision by Saturday and am ready to move. He came back with a quote of $329/month + tax with 1K down right off the bat (36mos/12k). I'm going in tonight to see the car and try and grind it down some more
Let me know what else you find.
HOWEVER, my point is ... let's take a theoretical example. You put $650 down and lost it. If you had financed the car and put ... oh, let's say $2k down, and you purchased GAP insurance, you'd be out $2k right now because the car easily depreciated that much.
So what I'm saying is, I don't see how putting more money down on a finance is any less risky than putting it down on a lease.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
It's just riskier putting money down on a lease, than not putting money down on a lease..
On most leases, nullifying that risk is virtually free... Which can't be said of purchases.. (though, that's not what we are discussing here... in the lease questions forum... I think..
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
When folks say things like "on a lease ..." and, really, my point is it applies to both lease and finance. So the lease, with regards to gap and a totalled vehicle, works no differently than a finance. You just need to buy the insurance with the finance while it comes automatically with the lease. And, no, I wouldn't say its "free" with the lease thanks to the fees.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Not on a purchase, either.... My insurance company guarantees fair value for my car, if it's totaled... That means the amount has to cover getting a comparable vehicle.... So.. even if the car is only worth $X, and I owe $X+$1000, $X will replace my car, so I'm even.... What I owe doesn't really have anything to do with how much my car is worth.
But, on a lease, I may not be able to replicate the lease terms on another car... So, I can actually lose money without GAP.
Just my $0.02..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Probably could have horsetraded a bit with them and done less down, but they let me walk out the door when I asked for $285/month + tax and 1K down (they wouldn't even counter, and explained to me the above).
Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 2.4i (not a stripped model) with 10,500 miles per year are .00106 and 48%, respectively. In addition to this special money factor, Volvo recently enhanced its lease cash on this car to $1,553. Make sure to take this cash into account when negotiating its selling price.
This lease program is scheduled to run through March 31st, though it would not surprise me in the least if Volvo made an unscheduled revision to it at some point over the next couple off days.
You are smart to want to go with a zero down lease. It is always in lessees' best interest to put as little money down as possible. Like most manufacturers' official advertised payments, I suspect that the S40 payment that you mentioned leaves a little meat on the bone so to speak. If I was in the market for an S40 right now, I personally would shoot for a selling price of a couple hundred dollars over dealer invoice minus the aforementioned cash incentive. You ccan look up the exact invoice price of the car that you want over in the New Vehicle Pricing section of Edmunds.com.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Can you please tell me if this is a good deal?
I have an offer to trade in my old Ford Explorer that has engine issues for a new 2009 S40 - promo model. Nothing fancy-no navi, no rims, no extras.
The offer I've got on the table:
500 Down in addition to my trade in
15k miles per year
300 clean a month - inclusive of tax
What do you think? They have 3 models of the car that I want, so I'm assuming I have some time.
The problem I'm running into is that they too are saying the lending department will need a co-signer due to my credit history having only 1 paid off car long of under 10k.
I would like to process the loan independently... but that's the story they are sticking to, with their lending instutiions. They said they checked with US Bank, their own lending dept and Ford. Ford was the only approval for me.
Any information that might help would be greatly appreciated!
The best way to evaluate how good a deal a lease is is to take a look at the selling price that the deal is based upon. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is difficult to tell how much of a dealer discount you are being given. You wouldn't finance a new vehicle without knowing its price. Leasing without knowing the selling price is sort of the same thing.
Find out what this car's MSRP and selling price are and I'm sure that either myself or another knowledgeable community member will be happy to tell you what we think.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
I was at a dealer last night and he said only US Bank is doing the financing - that Volvo has poor #'s. US Bank was showing a 37% residual and a .002875 money factor...
These seem WAY off.
any adive ?
There is a good chance that you will be able to get a better payment on this car by leasing it through a bank other than Volvo Finance. Volvo is currently providing a special $4,500 cash incentive on leases of this car through independent banks.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
This sounds like a great deal and I have a Cash-For-Clunkers car to handle the money down. What are the numbers they're using? Is a 60 month lease better than purchasing? My credit union's rate is currently at 5.49%
Specifically, there is an S40 that's $30,050 and I asked to get this at a lease rate lower than 300 per month, including taxes. The salesman said that they cannot give this car at that special since it's a higher MSRP than the advertised MSRP. I thought that I can negotiate the MSRP to a lower price, and then they calculate the lease rate from there?
Thanks a lot! Sorry, I guess I'm supposed to go through the other threads, but I'm desperate and will need to get something before next week.
Be careful with Volvo leases though. Volvo is pretty tricky. They usually have special lease money factors through Volvo Finance on "Base" models that they use to advertise an unrealistically low monthly payment. The addition of any options makes a car ineligible for this special money factor. If you want to lease a car that has additional equipment, you may end up having to do so through an independent bank and use the special cash incentives that Volvo is providing on that sort of transaction.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
I've spoken to a Volvo sales specialist and he is looking for an S40 worth $29,375 as he said this was the model advertised.
Thanks a lot for your help!
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
I know that sometimes incentives are regional (I live in CT), or cannot be combined with other deals, but I can't find any language that restricts it.
Is this for a specific model within the S40 family, or a model with restricted equipment? If not, at first glance, it appears we can lease a $30k car for 60 months @12k miles for about $300. Plus have the car under bumper to bumper warranty with free scheduled maintenance.
Any insight? Thanks!
Volvo is providing an additional $4,250 "Alternative Lease Assistance" cash incentive on the '09 S40, but in order to take advantage of this cash you must lease this car through a bank other than Volvo Finance. If you really want to lease, you would be better off passing on the extra cash and going with Volvo's official lease program.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
I am torn between leasing a 2010 S40 T5 AWD R-Design and an Audi A4 Premium Plus Quattro.
I have a 2007 S40 T5 AWD and loved it. Here are the lease options I have negotiated so far for the car with metallic, cold weather pkg and multimedia pkg:
MSRP= $34,650
Cap cost= $27,850
Months MF Resid Up Front Monthly
36 0.00237 15246 1572 497.48
39 0.00237 14553 1561 485.36
48 0.00237 11781 1547 471.57
What do you think of these terms?
I need to order the car soon from the factory as I am very particular with the exact configuration that I want and they are willing to order it that way. My current lease ends 1/1/10 and the Volvo Safe and Sound Package (extended warranty to 5/60k and covered maintenance) ends 12/31/09, so I need to order soon.
Thanks a bunch! You were helpful in all of my previous car leases/purchases, and I have come to trust your advice.
$1500 down and nearly $500/mo?
You know you could buy it for that, right?
Or how about leasing an Infiniti G37 for that kind of money? Or a Genesis. Or a C-class. Or... well, probably alot of other nicer cars. Nothing against the S40, of course, but it just doesn't look so appealing at $500/mo.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Thank you for your opinion, but my question was about leasing a S40, not purchasing any other model or even an S40. Besides, even at an unrealistically low interest rate over a 48-month buy, the montly payment is $150 more a month, which is not what I am willing to absorb. Thus, my decision to lease in the first place.
If anyone has any insights to the LEASE terms for the S40 outfitted as I indicated, I would appreciate it.
Thank you.
If you read between the lines, my answer is "they are terrible!"
Unless you meant to ask how these terms compare to OTHER S40 leases, in which case, you weren't clear AND my post did not answer your question.
And why you would compare renting a car over 3 years to buying it over 4 is beyond me.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
If anyone other than someone who doesn't understand leasing who is prowling the forums looking to cause trouble and provide useless feedback has anything useful to add, I would appreciate it.