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Volvo S40 Lease Questions

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Comments

  • volvomaxvolvomax Member Posts: 5,238
    Nope, nothing to negotiate if you have a/z plan.
    You walk in, sign up say thank you and drive out.

    Thats what the plan is for.
  • cvpacguycvpacguy Member Posts: 14
    Hi Car_man:

    can you provide the current lease information on a 2006 S40 2.4i with select package and automatic transmission? I'm looking at 24, 27, and 36 month leases with 12,000 miles per year. If you could provide the info for that, that would be great. I can calculate my own payment once I have the residual value and money factor from you. I'm looking for a minimum drive-off and would like to know which of the terms you think would lead to the lowest payment.

    Also, a dealer today offered me almost 6,000 off of the MSRP of the car built out the way I want it; is there a special lease support program right now? I'm waiting for a final worked-up quote.
  • avalon2000avalon2000 Member Posts: 25
    Wish to know, in advance, what may be best deal to lease following fully loaded T5:

    MSRP: $39,877
    price to me: $34,985 [via CarsDirect quote]
    sales tax: 8.375% [NYS/NYC]
    Duration: 36 mo.
    $ down: $0.00
    Miles @ yr: 15,000

    and calculate same with

    Duration: 24 mo.
    Miles @ yr: 12,000

    re first scenario with a .00138 money factor, 51% residual I came up with $520.86@ mo. incl. tax, but not including any lease orig. or return fees if any.
  • shakzilashakzila Member Posts: 6
    Great site!

    Say, Volvomax, how would I incorporate the $4,000 dealer incentive for leasing through a bank into my negotiations?

    thanks.
  • volvomaxvolvomax Member Posts: 5,238
    First of all, leasing an 06 anything in August isn't smart because of the low residuals.
    If you want to lease an S40, do it now.
    Otherwise, wait for the 07's and start over.
  • cvpacguycvpacguy Member Posts: 14
    hey volvomax-- since Car_man is nowhere to be found, can you give me the residual and MF info I'm looking for? My post is above-- looking for an S40 2.4i and am looking for the info for both a 24 month and 36 month (if a 27 is available, then that too) w/12k mile lease.

    Thanks!!
  • volvomaxvolvomax Member Posts: 5,238
    VFNA money factor is the same .00187
    Residual @ 24 mos 64% 36 mos 53%
  • 25stjames25stjames Member Posts: 6
    Are the money factor and the residual the same for the s40 2.4? Thanks.
  • volvomaxvolvomax Member Posts: 5,238
    That IS the info for the 2.4
  • shakzilashakzila Member Posts: 6
    Hello all,

    Dealer is offering me the following 2.4i in ice white, with auto, select pkg, DSTC....

    Sales Price... 19,150
    36 month lease, 36,000 miles
    No money down
    1st month + tax + registration
    Monthly payment including tax === $ 296

    What do you think??

    Not sure what
  • motoringmamamotoringmama Member Posts: 35
    I have negotiated with several dealers.. MUST MAKE DECISION TODAY***(volvomax)and others please help the best i got was for a 2006basic S40 with climate and select package + 15k miles

    36 month lease...
    Dealer invoice 25,500 MSRP was 27,135 The dealer offered at 344.66 and i have to pay $1200 out of pocket

    He said 370.08 with everything included besided motor vehicle. Is this a good deal? what should i be looking at in terms of monthly payments.. with nothing out of pocket?
  • apm4apm4 Member Posts: 4
    Ok...I have spoken with the Volvo dealer and gotten some numbers. I would very much appreciate it if I could have some feedback.

    I am turning in a 2003 Saturn L200 and hope to get roughly $8000 dollars. The buyout is 10,000 so this leaves me 2000 dollars in the negative. The dealer told me Volvo switched the incentive this week and that it is no longer 4,000 dollars through a private bank but only 3,000 dollars and through the volvo financial......

    So I will be up only 1,000 dollars because of the trade in taking away from the incentive. I plan on putting another 1000 dollars down.....SO these are the numbers:

    36-month lease. Market Value of car is 24,735. I will be given a 1000 dollar incentive and putting 1000 dollars down therefore the car will have a cap cost of 22735 roughly. The money factor given was .00091 and the Residual Factor was 53. The monthly payment offered is 363.00 dollars.

    Can somebody please tell me if this a good deal, makes sense, or if I should be negotiating more. I am new at this lease game and have tried the calculations out. Some guidance would be greatly appreciated. Thanks.

    PS...I am from NY and the sales tax is 8.75 if that also makes a difference...thanks again.
  • kaceycolekaceycole Member Posts: 1
    I just saw an ad on TV for a year-end (closeout) lease special in the Delaware Valley (PA). Before 7/5, you can lease a 2006 S40 2.4i for $249/month with a closed-end lease for 24 months. I'm assuming this is the base model and includes 10,500 miles/year with a $.15/mile overage fee. This also includes an upfront payment of $2618, $275 refundable security deposit, first month's payment, $595 acquisition fee and $1499 cap cost reduction. And, the gross cap cost is $22,647.

    Is this sort of special deal negotiable, i.e. the price of the vehicle, more miles, number of years of the lease to 3 instead of 2, options like a mooroof and auto trans?

    Also, as we get closer to 2007, will there typically be better deals available on the "old" models? I'm in no hurry and while I know the resid value on a '06 will be lower, that should be balanced out by a lower price on the vehicle.
  • rdrnerrdrner Member Posts: 1
    Hi everyone, I'm searching for advice. I'm looking to lease the '06 S40 T5 AWD. 36mo/15,000 miles per year. I've been talking with two dealerships in the area and the best they can offer me is $429/mo. with $1300 due at signing, inc. tax. One dealership is offering $374 for 48 mo. with $2300 due at signing. MSRP on the car is $33k. Should I keep looking? What would be a realistic lease payment on this car? Thanks!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello shakzila. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi apm4. I always start replies to community members who are upside down on their current vehicles by telling them that they would be better off waiting until they are less upside down, or better yet had no negative equity in their current vehicles to get a new one. Having said this, let's talk about the Volvo that you want. Volvo is still providing large cash incentives for leases of the S40 through independent banks this month. Specifically, it has $4,500 on leases of '06 S40 2.4i, $5,000 on leases of '06 S40 T5, and $6,000 on leases of S40 AWD models through banks other than Volvo Finance. Perhaps the Volvo Finance offer is more attractive right now. If you tell me the exact model that you are getting, I can tell you what its money factor should be. I suspect that you are getting the 2.4i. If so, it looks like the dealer that you are working with is trying to mark your car's buy rate money factor up to add additional hidden back-end profit to your deal. Volvo Finance's current buy rate lease money factor for a 36 month lease of an '06 S40 2.4i in New york is only .00051. Make sure to insist that this factor is used to calculate your car's monthly payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kaceycole. While it varies from deal to deal, generally speaking manufacturers' advertised lease payments usually leave a little meat on the bone so to speak. It makes sense if one thinks about it. Dealers would be pretty peeved if an automaker advertised the thinnest possible deal on a car or truck. There is a decent chance that you can negotiate a lower selling price on the car that you saw advertised than its lease payment was based upon by shopping around. If you are able to negotiate a lower price, its payment would be lower as well. You also can adjust this car's mileage allowance from 10,500 miles per year to say 12,000 or 15,000. Doing so will lower its residual value and cause its monthly payment to increase. Leasing for a longer term will help to cancel this increase out though because generally speaking, the longer a lease is the lower its monthly payment will be. A 36 month lease of this car will almost definitely have a lower payment than a 24 month lease of it would. It's difficult to say how much less this vehicle will cost to lease later in the model year. I suspect any additional discount that you are able to negotiate because it is late in the year will be mostly offset by a drop in residual values.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi rdrner. You never mentioned the selling price or MSRP of the cars that you are considering leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing what these cars' selling prices are in relation to their MSRP you don't know how much of a discount you are getting on them. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • shakzilashakzila Member Posts: 6
    Thanks for responding Car_man. Here's the info.

    The MSRP is 28,630 (includes destination charge).
    Sales Price is 19,150
    36 month lease, 36,000 miles
    Monthly payment including tax === $ 296

    Payment due at signing...No money down, 1st month + tax + registration $451

    Thanks.
  • chmcmmchmcmm Member Posts: 8
    Shakzila, please tell me you took the deal. That's an unreal deal. Maybe I'm missing something. I'm getting around $360/month + tax for the same terms.
  • chmcmmchmcmm Member Posts: 8
    Car_man,

    Are there still large cash incentives from independent banks? How does that work? Do I go to the Volvo dealer and say I want to lease through another bank?

    Here's the offer I have on the table.

    S40i - MSRP is $28,275.
    $359/month + TTL in Pa.
    36 months/12,000 miles per year.

    Thanks.
  • 25stjames25stjames Member Posts: 6
    What are the residual and money factor for the s40 2.4 with the new lease deal that is out? Thanks.
  • shakzilashakzila Member Posts: 6
    You bet I took the deal. The more I looked into it, the more sense it made. Basically, I pitted about 4 dealers against each other (two figured out they couldn't compete, and I really pissed another off)....anyway worked out great, I hope the info on my deal helps out other folks....so far, GREAT CAR!
  • volvo4lifevolvo4life Member Posts: 5
    Shakzila,

    That sounds like a great deal! What kind of car did you trade in, and what area did you purchase from?
  • longhornjefflonghornjeff Member Posts: 7
    Car_man,

    I am interested in leasing an 06 2.4i Auto w/ Select Package. I have read previous posts in May and June talking about 4000 dealer cash.

    Are the dealers still willing to give great deals on these cars?

    With an MSRP of $26,749, what should is the best I could do on a negotiated cap cost?

    I plan to lease 36 or 48 months (12k miles/year), what money factors and residuals should I expect?

    Thanks, Jeff
  • shakzilashakzila Member Posts: 6
    volvo4life......I did not trade in any vehicle and it was in the Los Angeles area......
  • alpinehillsalpinehills Member Posts: 3
    Car_Man: Will you please share money factor for the S40 T5 and estimated residuals for 24 and 36 month leases? Also, you mentioned some big cash offers earlier ($5000). When I negotiate sales price, should I work to take that $5k off the MSRP?

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Wow, that's an incredibly low selling price, shakzila. You're getting a $9,480 discount on this car. I suspect that this means that your lease is being run through an independent bank rather than Volvo Finance. Volvo is currently providing a special dealer cash incentive on this car for leases through independent banks. I'd say that you are getting an excellent deal on this car. It is a nice vehicle for only $296 per month with no money down.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Yes, chmcmm, Volvo is still providing additional cash incentives for leases of most models through independent banks. You can tell the dealer that you are working with that you would like to lease through a bank other than Volvo Finance, but dealers will usually automatically steer their consumers towards the best possible deal. If it works out that it is cheaper to take advantage of the additional cash and lease through Volvo Finance most dealers will point consumers in that direction.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings 25stjames. This car's lease program varies depending upon how long you lease for and how many miles per year you need to be able to drive. 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. If you were to lease a 2006 Volvo S40 2.4i through Volvo Finance this month for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00209 and 51%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Jeff. Over the past several months Volvo's incentives have become quite regional. As a result, I really need to know what state you are in to give you an accurate picture of what this car's current incentives are like. For now I can tell you that Volvo Finance's current 36 month, 12,000 mile per year buy rate lease money factor and residual value for the 2006 Volvo S40 2.4i are .00209 and 52%, respectively in most areas. The numbers for an otherwise identical 48 month lease are .00250 and 49%. Check out the following discussion to get an idea of what sort of price you should pay for this car right now: "Volvo S40: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi alpinehills. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2006 S40 T5 2WD with 15,000 miles per year are .00158 and 61%, respectively in most areas. The numbers for an otherwise identical 36 month lease are .00158 and 51%. Volvo has cash incentives that are compatible with leases of this car through Volvo Finance in some regions, not they are not nearly as large as $5,000. If you tell me what state you are in, I would be happy to give you an idea of what Volvo's cash incentives are like on this car in your area right now.

    Car_man
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  • alpinehillsalpinehills Member Posts: 3
    Thanks for the help. I live in Utah, but am shopping in Los Angeles (Santa Monica Volvo). I'm trying to get the best possible deal on an '06 S40 T5, sign and drive (zippo at signing). Any help would be appreciated--thanks!
  • longhornjefflonghornjeff Member Posts: 7
    Well, I had to go out of state to do it, but I just put a down payment on the EXACT car I wanted (as if I had ordered it). I am a recent college grad, and needed the lowest monthly payments possible so I can start to build my bank account. So I did a 63 month lease. Here are the details...

    2006 Volvo S40 2.4i, Automatic, Select Package, Climate Package, Flint Gray Metallic, Taupe T-Tec

    63 mo. lease @ 12k mi./mo.
    MSRP - $29,085
    Gross Cap Cost - $23,700
    MF - 0.00201
    Res - %29 (8434.65)
    Down - $572
    Monthly Payment - $320

    Another great thing I found out is that the car only recently arrived in the states (5/2006), so it hasn't been sitting on a dealer lot soaking up the sun for the past 11 months!
  • shakzilashakzila Member Posts: 6
    Car_man,

    It was indeed through an independent bank. I took Wells Fargo to them to get the incentive and they insisted on US Bank.---so I insisted on a bigger discount to go with US Bank. The car's great. You guys run an awesome forum.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the additional information, alpinehills. For the month of August, I believe that Volvo eliminated its lease support on the 2006 S40. That means if you want to lease one you are going to have to do so through an independent bank instead of Volvo Finance. This isn't really a big deal because when Volvo's cash incentives are taken into account independent banks often are the best option to lease them. In August, Volvo is providing a total of $3,250 in cash incentives on the '06 S40. Make sure to use this cash to negotiate an attractive selling price on the car that you want.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks shakzila. Enjoy your new car :).

    Car_man
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  • newcarbuyer3newcarbuyer3 Member Posts: 3
    Looking to lease an s40 T5 in TX and would like to get in with minimum down and minimum mileage. Can you tell me what I can expect from MSRP, residual, finance rate, etc. for 36 and 48 months?
  • sunvolvosunvolvo Member Posts: 1
    Car Man,

    I just moved to San Francisco and am looking to lease a 2006 S40 T5 with the following specifications:
    > Titanium Grey Metallic
    > Premium Package
    > Audio Package
    > Park Assist Front and Rear
    > 36-month lease
    > 12,000 miles/year

    MSRP on the Volvo website is $33,744. I am planning on putting $3,500 down, which gets me to a calculated payment of $469/month. Based on what I have read throughout this forum that seems a bit high. Is it safe to assume that I can knock off ~$4,500 in looking for an '06?
  • mrrk47mrrk47 Member Posts: 104
    Wow...a 63 month lease and a 320 payment. I did a 48 month lease(as long as the warranty) everything you have except select pkg for 365...I guess a 45 extra dollars is lot of money. Wow a 63 month lease !!!!!!!!!!!!!! I didn't even know they had such a thing .Wow a 63 month lease..was 64 too long ...JK! bye the way I put nothing down, Edmonnds doesn't recommend a lease longer than the reg warranty....
  • stanwelksstanwelks Member Posts: 35
    I have been negotiating the price for an 07 S40 at around $27k. I am now thinking that it might be a better idea to consider leasing it. How should I expect this to affect the price that I was negotiating now that I might be leasing it?

    Do dealers try to charge more for a lease than for a purchase?
  • mrrk47mrrk47 Member Posts: 104
    Don't let it affect it at all. You can and should negotiate price in the same manner as if you were purchasing. I once fell for the myth of no neg for leases...BS. Talk price first..settle it firm.
  • driveallday001driveallday001 Member Posts: 1
    Hi Car_man, Can you provide Volvo Finance current buy rate lease money factors and residual values for 2007 S40 T5 2WD with automatic:

    24/12K, 24/15K
    36/12K, 36/15K

    Do you also know what cash incentives are available in Illinois?

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi newcarbuyer3. You can look up the full MSRP and dealer invoice price off the exact car that you want by visiting the following section off this site: Edmunds.com - New Vehicle Pricing. As far as this car's selling price goes, you may be able to get an idea of how mych you should pay for one right bow by visiting the following discussion: "Volvo S40: Prices Paid & Buying Experience".

    I can give you an idea of what this car's lease program is currently like. I assume that you are talking about a 2007 model. Correct me if I am wrong. Volvo Finance's current buy rate lease money factor for a 36 month lease of a 2007 S40 2.4i with 15,000 miles per year in your area are .00321 and 55%, respectively. The numbers for an otherwise identical 48 month lease are currently .00344 and 45%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi sunvolvo. Volvo is currently providing a number of cash incentives on the 2006 S40 in your area. It has $2,000 bonus cash on it plus an additional $1,000 conquest / loyalty cash, plus an additional $1,250 lease cash. This all adds up to a total of $4,250 on leases of this car through Volvo Finance. This is before any sort of dealer discount. I am sure that most dealer will be fairly anxious to unload any 2006 models that they have left in inventory now that the 2007 models have arrived. If I was in the market for this car, I would shoot for around dealer invoice and then have the dealer subtract any available cash incentives.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I agree mrrk47. 63 months is way too long to lease any vehicle for. 48 months is really the longest one should lease for and I personally prefer 36 to 39 month leases.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello stanwelks. Volvo is currently providing $1,750 dealer cash on the 2007 S40. I do not believe that this cash is compatible with leases though Volvo Finance though. I am sure that the dealer you are working with took it into account when they quoted you a selling price for a cash purchase of this car, so they price for a lease of one through Volvo Finance may be $1,750 higher. Other than that, you should be able to negotiate the selling price of this car for a lease, just as if you were paying cash for it. You can always stop by the following discussion to see how much other community members have paid for similar cars lately: "Volvo S40: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, driveallday001. In your area, Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 S40 T5 2WD with 15,000 miles per year are .00233 and 65%, respectively. The numbers for an otherwise identical 36 month lease of this car are .00233 and 55%. If you lease with only 12,000 miles per year, this car's residual values would be 2% higher. Other than a bonus for returning Volvo Finance lessees, I do not believe that Volvo is currently providing any cash incentives on leases of this car through Volvo Finance right now. It has $1,750 dealer cash on it, but this incentive is not compatible with its special lease program.

    Car_man
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  • bigdummy77bigdummy77 Member Posts: 8
    MSRP $29,310, automatic, select and climate packages. 36 month lease, 12K/year. First month, tax and MV fees (approx $2,600) due at signing. $299/month.
  • jobuallijobualli Member Posts: 13
    I need some advice as to whether the following two offers from a local Volvo dealer are as good as they sound to me. Both are for a 2007 S40 T5 AWD 6-speed manual, metallic paint, audio pkg, climate pkg, premium pkg, 15,000 miles per year, and $1350 up front.
    Scenario 1 - 48 month lease, $450/month payment.
    Scenario 2 - 36 month lease, $483/month payment.
    Are these good offers? Which one is best?
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