2013 and earlier Volvo S60 Lease Questions

atran38 · July 2007

I'm wondering the same thing too. I think the MF is way high and am trying to lower that but the dealer is telling me its dependent on my credit (i havent given them my credit app yet). I'm not sure if i calculate it right, but the interest is about $ 7k which seems oddly high.

28firefighter · July 2007

The deal fell through on the particular car I was looking at, and it was the only manual that they have.

However I found another car that has what I want that lists for $43,850; Purchase Price: 37,161; Lease-Purchase Price: 30,411. This leads me to believe they are holding back on some of the incentive but this is prior to any negotiation.

Can anyone double check/confirm that there is still in fact $10,500 in lease incentives on the S60 R AWD for leasing through an independent bank?

Thanks!

qbrozen · July 2007

The deal fell through on the particular car I was looking at, and it was the only manual that they have.

Maybe they realized what I suspected: they were losing money on the deal (?)

atran38 · July 2007

There is a 11,000 incentive on the car right now through an independent bank.

28firefighter · July 2007

You're probably right...they said they forgot to hold the car, so it sold to someone else (who offered more or whatever)

Anyway this is what I have on the table now:

2007 S60R AWD 6spd
Titanium Gray
Sand Soft Interior
Premium
Climate
Rear Park Assist
Interior Air Quality Sensor
Satellite Radio Prep
MSRP: 43,850
Lease-Sale Price: 30,211
$0 down/With Tax: 475/month, 36 months, 12k miles a year
$3000 down/With Tax: 376/month, 36 months, 12k miles a year

That sounds extremely reasonable to me...how does this sound to you qbrozen?

qbrozen · July 2007

Sounds great.

Man, that residual is just atrocious. Anyway, I plugged your numbers into Leasecompare.com and the best number it spits back is $501 with zero down. So it sounds like you are doing real well.

I know people usually say put nothing down, but I think I'd go with that $3k down. It saves you nearly $600 through the life of the lease (probably more like $200 if you subtract out lost interest on your part), but, more importantly, it gets you below $400, which is kind of a mental block for me, personally.

28firefighter · July 2007

I'm not to sure where residuals are usually on cars that are leased, but I was quoted 41% residual.

As far as the 3k down, the getting it below $400/month thing is also a mental block for myself as well haha.

I had been thinking about picking up a used R, but with these ridiculous lease rates, it pays to lease it first and then buy it out with that lease end buyout. Anyway we are going up to look at the car on saturday since I'll be out of town tomorrow, and if everything works out when we get there (and it isn't sold again), we'll do the deal. It just makes too much sense not to. I appreciate all your help with this!

qbrozen · July 2007

Heck, depending on how the lease works, it may be better to buy it out early. All depends on the numbers, of course.

I don't know if I'm helping nearly as much as living vicariously through you. ;b

Good luck. I'm jealous.

atran38 · July 2007

Man,
Thats a heck of a deal! Mine is a bit high, i think...I have an S60R with the following:
MSRP - 43805
Cap - 30000
Residual - 32% (14,018)
Term - 48 months
Down - 1000.00
MF - .00385 (I think is high)
Payments - 500.00

Couple of questions...can the MF (my credit is good, not excellent) and the residual be negotiated?

Good job on your lease!!!

28firefighter · July 2007

the Residuals are non-negotiable, but depending on if the Money Factor is marked up by the dealership will depend if you can negotiate it. If you don't qualify for top tier credit, it will be hard to know for sure what that base rate will be, especially with an independent bank who doesn't publish their information widely.

I know that doesn't help very much, but I will try and find out the money factor I am being quoted with top tier credit to give you an example.

qbrozen · July 2007

maybe you should try checking out that leasecompare.com site i mentioned a couple of posts back. $501 with $0 down for 36 months was the quote there. Still not as good as firefighter's, but much better than what you are being quoted.

You can also put your credit score in there, so maybe that will help you figure if your current quoted rate is accurate or not.

atran38 · July 2007

Thanks for the link! Looks like i will need to do some more negotiating...:) Yep, i wanted to stay as close to the 400 mark as possible. Thanks again for your help. Anthony

fuzzynips · July 2007

I too would like to know if this $11,000 lease cash for independent banks is still going on? I see people here with quotes posted today or a few days ago still including this bonus. Yet, today I emailed a dealer that still had an S60R in stock as to what price they could give me and I also asked if there were any special purchase/lease incentives going on. He made no mention of the lease incentive but told me he could get me the car for the price quoted below "after the savings." Are you people telling me that, on top of his quote, I should be able to go in there and lease through an independent bank and mark off an additional $11,000?!

These are the numbers I was given:

2007 Volvo S60R
Electric Silver Metallic
Automatic Transmission
Climate Package
Rear Parking Assistance
Satellite Radio Prep.
18" Pegasus Alloy Wheels

MSRP: $46,045
INVOICE: $43,023
QUOTE: $39,279

36 months at 568.71
48 months 505.35

Accoring to him, I would also need to put the tax, title, license and first payment down at signing which would be around $3,000.

Besides for the purchase price, those look like terrible numbers. If I lease, I'm rolling the tax into my payments and putting $0 down.

Please help me out and explain this lease incentive, because if I can go in there and knock the price down a bunch, I will lease through an independent bank tomorrow!

28firefighter · July 2007

Volvo Finance is offering 11,000 in lease incentives to the dealer if you lease through an independent bank vs. volvo finance (Wells Fargo and USBank are the two popular ones I believe). So you may not be able to knock it down 11,000 from the price you were quoted (since that might include different leasing incentives or puchase incentives)...but right now you should be able to get a lease-price (before any money down) of right around 33-33,000 if I'm using the same template as my number.

As far your monthly lease rates, they look really high to me, but that sort of thing is based on your lease-purchase price, how much you put down (creating your effective capitalized cost), money factor, and residuals.

I hope this helps a bit, but your numbers look really high that they quoted.
Alex

fuzzynips · July 2007

Alright, I'll send him an email back and try to find out what "savings" he was using. Once I get a response, I will ask him about the $11,000 incentive. Obviously, my goal is to get the best possible price before the $11,000 incentive is applied. As far as the lease payments are concerned, I need to find out what residual and MF he was using. Thanks for the confirmation on the $11,000.

fuzzynips · July 2007

Alright, I got his message back about the $11,000 incentive and how he got that price. His logic doesn't make any sense, at least not to me.

--------------------------
The lease bonus comes off the MSRP. You would not take the Purchase incentive and the Lease incentive and put them together. I can not discount the car and put an incentive on the car at the same time, the discount is the incentive. So when you say sale price of $41,000 and then lease incentive of $11,000 that can not be done. Its $11,000 off the $46,045. The $11,000 was used in the lease I quoted.
--------------------------

So, if I take the $11,000 lease incentive, it HAS to come off of MSRP...at least according to his rules. According to him, he used this deal in his quote. So, how does $46,045 - $11,000 = $39,279????? It should be $35,045 which is still much higher than other people on here are being quoted. He did, however, give me a residual of 40% and a MF of .00215 for 36 months / 15k miles.

28firefighter · July 2007

What he is essentially telling you is that he is selling the car for list (MSRP). You should be able to, before any incentives, negotiate a purchase price of invoice pricing (can be found here on edmunds). The incentive can be taken off whatever they are selling the car for, what he is doing is using the incentive as the only money he is taking off the car and then making profit off the fact he sold the car for list minus incentives (which have no effect on his profit).

Clarify with him, what he would sell you the car for before any incentives- like they didn't exist on either a purchase or a lease. Take that number, and then include the incentives off. Your invoice price on that car should be around 42,000 give or take a few dollars.

For instance here is the deal I have worked (3rd car this time, because the last car I was mentioning was sold...this time they are holding it since I put a deposit down):

2007 S60R AWD
Black Sapphire
Black/Blue Leather Interior
Premium Pack
Climate Pack
Sports Pack
18" Wheels
MSRP: 46,045 (roughly)
Sale Price: $42,000
Lease Sale Price (including Incentives): $31,000
Down Payment: $0
Capitalized Cost: $31,000
Monthly Payment: $477/month (including Tax), $0 down
39 Months
12,000 miles/year

I hope this helps clarify things for you with that breakdown. My best advice is to have him break it down for you, just the way I broke it down here- that way you can see where everything falls and he can't pull any fast ones. Right now what he is doing, is highballing you A LOT and using the fact there are $11,000 in incentives for leasing to cover up the fact he isn't really discounting the car.

fuzzynips · July 2007

Thank you for the post, we both share a common view on how this discount works. To the average person, his price of about $7,000 below MSRP looks good. However, the fact that he didn't give me the full $11,000 discount AND that it was coming off of MSRP and not a negotiated price made the deal bad. I emailed him back and called him out on it saying that we should be able to negotiate a selling price below MSRP before the $11,000 was credited. He reconfirmed that he would only give me it off of MSRP which is when I ended my negotiations with him. I'll have to find another local dealer that has any R's left in stock.

fuzzynips · July 2007

I contacted another dealer that has an S60R available. This guy seems to be much better to work with. His initial quote is a little high at about $1,000 over invoice but at least he's not telling me that he can only provide the incentive at MSRP.

2007 Volvo S60R
Titanium Gray Metallic
Automatic Transmission
Premium Package
Climate Package
Satellite Radio Prep.

MSRP: $44,500
INVOICE: $41,695
QUOTE: $42,784 ($1,089 over invoice) [before incentive]

I am currently waiting for a response on trying to get the selling price at (or closer to) invoice, and what the money factor and residual will be for a lease of 36 months/15,000 miles.

28firefighter · July 2007

Thats definitely a lot better then what you were dealing with before. Shoot for nothing higher then invoice- trust me, its not like people are totally breaking down dealers doors for the car. Don't let them know you REALLY want the car...its a good bargaining tool. Considering you aren't after a manual transmission, they are a dime a dozen.

Good Luck! My car is being dealer traded as we speak...should be here the end of the week!

fuzzynips · July 2007

I agree with your point about not making it seem like you're really excited about the car. He knows I want the color, transmission, and options but at the same time, I'm not sprinting in there until he fixes his quote. I told this last dealer I want below invoice as it's a car that's not in particularly high demand, still has some inventory left, and is a 2006 model. He tried to get me to come into the dealership but I told him unless he gives me some kind of quote to think over, there's no reason I need to be in the dealership to receive numbers. Post some pictures of your car once you get it!

28firefighter · July 2007

Unfortunately there will be no car.

I went to the dealer tonight (after giving a phone deposit on saturday) to sign the buyers order and was informed that the sales guy at my dealer did not put a hold in for the car at the other dealer until today, at which point it had been sold.

I'm SO angry right now...and have just about had it...that was the last car in my area, so unless something lands on my doorstep thats too good to pass up, I'm done for now.

Let me know if you end up getting your R! Good Luck!

qbrozen · July 2007

ugh!

sorry to hear it!

fuzzynips · July 2007

Oh geeze, you seem to be having terrible luck with purchasing the S60R...maybe it just wasn't meant to be? I'm thinking the same thing for myself as I just got lease payments from a new dealer that are still high at $600 per month. I think I'm going to stick with the G35X as the payments are much lower.

felbie1 · July 2007

I e-mailed a few dealers in my area and was wondering what the breakdown for the current lease incentives were for leasing through an outside bank. im hoping to get invoice minus 11,000 on an S60R. Just want to get to the dealer with the correct information.

28firefighter · July 2007

If you read up the last 5-10 posts, you will see most of us have been breaking down the deals we were getting. Volvo is currently offering 11,000 incentives for leasing through an independent bank. The best way to get the best deal is to negotiate your deal as if there were no incentives, and then have them apply the incentive. As far as lease rates go though, you could be getting any number since its at the dealers discretion what bank they use. Sometimes it'll be USBank or Wells Fargo, othertimes it will be a big popular local bank.

If a dealer is quoting you anything other then invoice price and then taking off the incentives, you can do better because it means that we will be making more profit. Also remember you're at the end of the model year- he is not gonna wanna be stuck with an '07 car (even if it is discontinued for next year)

Hope this helps.

felbie1 · July 2007

Thank you, so the deal that you had posted earlier was based on a 41,200 price before the incentives? is this invoice for the car? IM hoping its possible to get the sale price in the 30's although all of the other factors can bring the payment up, ideally id like to be at/under 400/month.

Any idea what kind of incentives are on the T5 model?

28firefighter · July 2007

The deal I had posted never went through, but yes the few deals I had were based on either Invoice pricing or below- all that information can be found by pricing out the car you are looking at on the edmunds front page.

Depending on what your car lists for, what its invoice is, and what your negotiated lease price is before money down, you should be able to get it below 400/month with money down.

Good Luck.

tonyt1 · July 2007

What are the current lease incentives on the 2.5T and T5? I keep hearing about the $8000 incentive when leasing through an independent bank. Are there other lease incentives (e.g., dealer cash) that this can be combined with? I'm guessing there are because I see these cars advertised for lease with a cap cost more than $8000 under invoice. I would just like to know exactly what they are so I'm armed with all the info when I go to a dealership. THANKS IN ADVANCE!

28firefighter · July 2007

I didn't want to jinx anything and post the details of the deal, until I was sure the car was mine...but today I picked up my 2007 S60 R AWD!!!

I'll post pictures of it later on once I get my camera, but wow...an amazing car...here are the details of the deal:

2007 Volvo S60 R AWD
Black Sapphire
Nordkap Blue Leather Interior
6spd Manual
Premium Package
Climate Package
18" Wheels
Interior Air Quality System
Volvo Bluetooth
List: $45,700
Sale Price: $40,300
Lease Sale Price (including $11,000 incentive): $29,300
$437/month including Tax
36 Months
12k miles/year
$0 down (Inceptions due at signing only)

Car is absolutely fantastic!!

qbrozen · July 2007

hey, congrats!

wow! $16k off is insane!

kyfdx · July 2007

I agree.. it's crazy..

I wonder if there is some sort of chargeback, if you try to buy the lease out in the first few months? If not, it seems that leasing, then buying, would be cheaper than purchasing outright...

28firefighter · July 2007

The residual on it is absolutely stupidly low...something like $17k. My feeling is if the car is trouble free, I'll buy it out at the end of the lease. It's just so much car for the money.

Also...an interesting lil tidbit from when I was signing the papers...in the lease agreement with the independent bank, they had a stipulation in there that says as long as you pay your monthly payment on time, they will cover any excess wear and tear on the car up to a cost of $2000.

Anyway, as long as it stays trouble free I'll be happy. The deal was really painless too.

qbrozen · July 2007

oh, absolutely. And that's exactly what I've been telling people on these S60s for quite some time now. There is just too much trunk money on a lease to NOT take advantage.

ssmike · August 2007

How'd you get the dealer to go about 2K below invoice (in addition to the lease incentives)? It seems to me that their selling price cut out most, if not all of the profit from the holdback?

Thanks. I am negotiating with a dealer on a similar car and they want a bit OVER invoice on an R with a few more options.

28firefighter · August 2007

They had been sitting on the car for a while now, and didn't want to dealer trade it out. So they were very agressive with their pricing.

Either way, I'm lovin the car!

ssmike · August 2007

Do you mind telling me what area you are in? Also, how far below invoice was the car sold for? Working backwards with your numbers, It looks like they sold you the car at about 1500 or more below invoice...

Or, if you dont want to post this info, please email me at vdriver@yahoo.com

Thanks. Mike

28firefighter · August 2007

I am in the Philadelphia region.

I believe I posted all my numbers further up as far as sale price and everything....but 1500 sounds right.

CarMan@Edmunds · August 2007

Hi tonyt1. Through September 4th, Volvo is providing a $3,500 cash incentive on leases of the '07 S60 through Volvo Finance. If you opt to lease this car through an independent bank, Volvo is providing a total of $9,000 in cash incentives on the '07 S60 2.5T and a total of $10,250 on the '07 S60 2.5T 2WD. These offers are not compatible with the $4,500 dealer cash that Volvo is providing on cash purchases of this car.

Car_man
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CarMan@Edmunds · August 2007

Congratulations on getting your new S60, 28firefighter. Thanks for taking the time to share the details of your lease with everyone. Don't forget to stop by the new Edmunds.com Dealer Ratings & Reviews section of this site to share your thoughts on the dealer that you got your car from with everyone.

Car_man
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atran38 · August 2007

Hi Car_Man

Thanks for the updates on the lease options!!! I'm interested in getting the R; is there any cash incentives going through an independent bank? and if so, how much?

I seen people on here getting about 13-15k off from invoice. According to you, last month was 11k off an R. I hope its still around or maybe even a better incentive.

Thanks again for all your help!!!

Anthony

0017tristan · August 2007

I was quoted with the following today at a dealership in Austin, TX for a S60 2.5T titanium Gray with Sport Package and Premium package. I love the car, this is my face at this point....

First off, the dealer would not budge on offering the $10k in leasing incentives after negotiating the actual sales price. He said he didn't understand what I was saying and that the $10k would only come off the MSRP. He said that the MSRP was non-negotiable with the leasing incentive.....This was my face at this point.... :confuse:

Here's what he quoted me:
MSRP: 36,645
Sales Price: 26,645 (after leasing incentive)
Residual: 38%
Rate: .00320

For a 36 month with 12k miles a year, he quoted me $516 a month. In a word....Ridiculous. If you are keeping track....

:confuse: :surprise: and now...... :mad:

When I called him out on the monstrosity of this quote (I can lease an Audi A6 for that amount, which is what I am in now), he just shrugged and said that the "BEST" he could do was throw me in an S60 with just the Premium package for $400 a month but at a 48 month, 12k miles a year lease. Um, WTF? :sick:

Needless to say, I did not accept and walked out. Side note, he would not provide me with all the information posted above at first. I had to pretty much grind it out of him. I'm appalled at the ineptness of the person. I cannot find a face that truly depicts my thoughts.....

The whole experience was dirt. Thanks for all your posts anyhow. I'm going to research some more and find a different car. :P

CarMan@Edmunds · August 2007

No problem, Anthony. Volvo is currently providing a whopping total cash incentive of $11,250 on leases of the 2007 S60 R through independent banks.

Car_man
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CarMan@Edmunds · August 2007

Hi 0017tristan. Having only the lease cash subtracted from the selling price of the S60 that you are interested in without an additional dealer discount is a bad deal. You can share your thoughts on this dealer with an even wider audience by using the new Edmunds.com Dealer Ratings & Reviews if you'd like.

Car_man
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sprinkler13 · August 2007

Car_Man...since I'm not as familiar with the current values of the Volvo's (I'm a G35 guy myself...this is for my girl)...is it realistic to be pushing for Invoice or BELOW on the sale price and then adding the $3500 incentive to go lower? She isn't looking for a vehicle with a ton of features, just premium really so she is flexible. I'm just trying to see if a low $300's payment (including CA tax) is doable on the S60...or maybe less on the S40 for that matter. Let me know your thoughts. Thanks.

yolanda4510 · August 2007

Hi, I don't have all the specific info, but I was shopping for a 2007 S60 and got the following offer. From reading some other posts, I would think I could do better. Am I right?

2007 Volvo S60 2.5T FWD
Climate
Premium
Convenience
Metallic Paint
Wood Wheel
3yr, 12000 miles/year
No money down, 379+tax (which comes to $402 for me)

Thanks for any help.

qbrozen · August 2007

Yes, that is reasonable. Personally, however, I'd be shooting for $100-$200 over invoice, then take off the incentives.

I strongly suggest, however, you lease through an independent bank. Volvo is not offering a strong enough money factor (nor could they) to make up for the extra $5500 you'd get off the car by leasing through an independent bank.

qbrozen · August 2007

man, these residuals are just making me want to wait a couple of years and get on off-lease volvo CHEAP!!

I just checked out the car I would like to have. A 6-speed T5 with premium and climate packs. $36k MSRP and a whopping $13,800 residual after 3 years! So for about $15k, I should be able to pick up a 40k-45k mile T5. SWEET!

I shouldn't be terribly surprised, I guess. I mean, I did pick up my 3-year-old 30k-mile S70 T5 for $20k, certified, with an original sticker of nearly $40k. I guess I just assume values would have gone up over the past 6 years.

yolanda4510 · August 2007

Thanks. I spoke to the dealer. He says there are not $10250 in incentives on the 07 s60 FWD. How do I verify the incentives mentioned here so I can get the car at the right price?

qbrozen · August 2007

There aren't. Carman said $9k.

I think the confusion may be in a typo. He said $9k for the 2.5T and "$10,250 for the 2.5T 2wd." But I believe he meant "AWD." I infer this based on the fact that he mentions the $9k for the standard 2.5t just before that AND because 2wd is technically incorrect (its either FWD or AWD).

2013 and earlier Volvo S60 Lease Questions

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