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Volvo S80 Lease Questions

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Comments

  • serdarflserdarfl Member Posts: 13
    Jordon, you are right. My mistake. Costco only applies to XC's and V70. However if you work for a company that is affiliated with Ford or Volvo you qualify for the X-plan prices. You have to provide your dealer with a Pin Code.That gets you additional $2,500 on top of the current incentives. Also, If you currently own a Volvo that's 2,000 loyalty money on the S80. T6 is a very nice ride. Has the pick up the 3.2 lacks. I believe you already finalized the deal but I wanted to make sure you are aware of the promotions. Enjoy your vehicle!
  • nate007nate007 Member Posts: 3
    Have just been quoted the following lease deal on a Volvo S80, 3.2 (not turbo or V8). Convenience package, navigation, BLIS - MSRP (according to Vovlocars.com)at $45,235. For 42 months, 15K/month, $1,200 down, and cap cost of $33,600 for a total monthly payment of $535/month plus tax. Seems a little high to me. I was hoping of something in the $400's including tax with no money down (other than 1st month's payment). Does this seem like a good deal? If not, how much can I negotiate off the quoted cap cost? I am not a current Volvo owner, nor do I have a family member who is a ford ee.

    Thanks!!!
  • johninDCjohninDC Member Posts: 8
    Carman, my lease is up in June. Will Volvo Finance negotiate on my buyout? If yes, any idea how I figure out what is the minimum they will take for the car? Thanks
  • nate007nate007 Member Posts: 3
    Carman or others-

    Just negotiated the following lease for a 2009 S80. I was hoping at the end of the day to be at $500 including tax, but I'm pretty happy with this. Any thoughts on whether I should take the deal?

    3.2, Convenience Package, Climate Package, BLIS, Sirius - MSRP $44,335.00
    Sale Price - $31,601.00
    First month payment down only
    39 months
    12,000/year
    496.00/month plus tax = $530.00/month total
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi johninDC. I do not have any personal experience in trying to negotiate a vehicle's end of term purchase option price with Volvo Finance. In general though, more often than not, banks will not negotiate these prices. This doesn't mean that you shouldn't try though. The only thing that you have to lose by giving them a call to see if they will work with you is a few minutes of your time.

    Base your offer to them on what your used S80 is worth in the open market right now. You can find out approximately what your car is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values".

    Car_man
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  • sophie44sophie44 Member Posts: 1
    I am about to sign an S80 lease and would appreciate any informed feedback as to the negotiated terms.

    The vehicle is a black/black 2009 S80 T6 with metallic paint, the climate package and diamond cut wheels. It is a 36 month/12K mile lease. I would be paying no cap reduction, only tax, title, licensing and first payment at signing.

    The monthly payment is $459. Is there any reason not to close this deal?
  • azbmwx5azbmwx5 Member Posts: 10
    Hello Car_Man:

    I realize that this is not a well frequented thread, so I hope that you will see my message. I am working on a lease for a 2009 S80 3.2 6 cyl (non-turbo), either the base model, or with only the convenience package added. I understand that the dealers are receiving $6,500 cash on this model. Can you give me Volvo Finance's money factor and residual on a three or four year deal, 10,000 or 12,000 miles per year? Can you also let me know what Volvo's bank fee is and if there is typically a fee at the end of the lease? I am seeing deals advertised that are all over the place, so I am willing to be flexible on the exact deal terms to get the best money factor/residual balance. I really appreciate your help.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi azbmwx5. Volvo is providing $6,500 dealer cash on the 2009 S80 right now, but this cash is not compatible with its special lease program. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2009 S80 with 12,000 miles per year are .00172 and 43%, respectively. The 10k residual value would be 1% higher.

    I know that Volvo Finance charges a $595 acquisition fee on every vehicle that it leases, but I'm not sure if it has a disposition aka termination fee.

    Car_man
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  • godfather9godfather9 Member Posts: 31
    Does anyone know the current money factor and residual for a 15k a year, 36 month lease?
  • godfather9godfather9 Member Posts: 31
    Here is what I have been offered on a 36 month, 15k lease on the s80 3.2

    $29650 selling price
    2601 sales tax + other fees =

    32,576

    more importantly- 41% residual and .00208 mf. Can anyone verify what the lowest mf they can do is?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi godfather9. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2009 S80 3.2 with 15,000 miles per year are .00172 and 41%, respectively.

    If you're not leasing a base model, or possibly even if you are, you may be better off leasing the S80 that you are interested in through an independent bank. Volvo is currently providing a $3,500 cash incentive on leases of this car through banks other than Volvo Finance.

    Car_man
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  • garymarkgarymark Member Posts: 1
    John

    Due to the exorbidant residuals structured in those lease deals, I think most dealer finance companies will offer you exceptional deals if you want to buy your car back. For example, a friend of mine has an '07 Saab ragtop coming off a 27 month lease. Buyback was $33K. He went to the dealer and asked what he could do for him. Dealer told him (and I paraphrase), "Don't worry, I'll buy it back from GMAC and sell it to you for $23K." This was with no negotiation. So my gut tells me he will be able to get it for closer to $21K. Good luck!
  • zamozamo Member Posts: 122
    VCFNA has a $395 disposition fee
  • zamozamo Member Posts: 122
    VCFNA does not negotiate directly with the customer. Been there done that and I have checked around on other forums gathering similar experiences. They have insurance and thus more interested on auctioning the car.

    If the dealer buys the car from VCFNA and then sells it to you, I can guarantee that the price will be higher than what you will find out on autotrader or any other place.
  • rlongo76rlongo76 Member Posts: 3
    Do you know any details on the new programs for August? I guess they are giving 5 yrs of maintenance including wear and tear and brakes? Any idea what the incentives are?
    I've seen 3,500 for leasing and 6,250 allowance? Are these stackable?.

    Also do they give volvo loyalty incentives?
  • zamozamo Member Posts: 122
    Yes they are stackable when leasing through US Bank.

    1,000 loyalty
    3,500 leasing incentive
    6,250 allowance.

    Gotta love those [non-permissible content removed] residuals though.
  • jl49jl49 Member Posts: 33
    Yes they are stackable when leasing through US Bank.

    1,000 loyalty
    3,500 leasing incentive
    6,250 allowance.

    Gotta love those [non-permissible content removed] residuals though.

    How do you apply for a lease through US Bank? Do you have to go directly to them or does the Volvo dealership process the lease through them instead of going through VCFNA?

    Also what is the mf and residual US Bank is currently offering on 10k/yr 36mo lease on the S80?
  • zamozamo Member Posts: 122
    Go to the Volvo dealer.

    39 months seems to be the best. These are numbers I got a couple of weeks ago:

    Standard White/Black Leather MSRP $40,425
    $1000 due at signing
    459 tax inc. (6%)
    Cap Cost: 27,745.58
    Money Factor: 0.00224
    Purchase Option: $14,903.00

    The residual is crap as you can see.
  • jl49jl49 Member Posts: 33
    Go to the Volvo dealer.

    39 months seems to be the best. These are numbers I got a couple of weeks ago:

    Standard White/Black Leather MSRP $40,425
    $1000 due at signing
    459 tax inc. (6%)
    Cap Cost: 27,745.58
    Money Factor: 0.00224
    Purchase Option: $14,903.00

    The residual is crap as you can see.

    Thanx for the quick response. When I work out the numbers, it seems like the residual is 37%. Is it that low?
    The interest rate comes out to 5.76% which seems to be ok, but always can be better.
    Are the numbers you gave me above for 10k miles/yr?
    How did you get the cap cost to be so low? Was that invoice minus 6250 minus an add'l 3500?
  • wokscottwokscott Member Posts: 8
    Anyone know what the current incentives are for a lease on the S80? Along with residual and money factor? Car man? Help, please....
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi wokscott. Volvo isn't providing much in the way of lease support on its models through Volvo Finance any more. I heard that the company is transitioning to running special leases through US Bank, but I haven't heard any specifics yet.

    If you really want to lease an S80, you would be best off taking advantage of the $4,500 cash incentive that Volvo is giving customers who lease one through an independent bank.

    Car_man
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  • mismaloyamismaloya Member Posts: 5
    CarMan,
    Can you share all the incentives taking place for leasing a 2010 S80 if you know it?
    Also- what are people paying in relation to invoice before all the cash offers?
    Thanks
  • autoboy19autoboy19 Member Posts: 155
    In response to your questions, the incentives are as follows:

    $4,500 lease incentive if you go through U.S. Bank
    $3,500 dealer cash
    $1,000 owner loyalty cash (Any model or year Volvo)
    $750 A,Z,X plan bonus cash if you have Ford PIN

    They are all stackable.

    The residuals are as follows through U.S. Bank for 12k per year (15K per year are 2% lower across the board.)

    S80 3.2

    36 41%
    39 38%
    48 30%
    51 28%
    60 22%

    Base money factors 48-51 .00214
    36, 39 and 60 .00224

    Acquisition fee- $995 (Not 100% sure on this one)

    I would say shoot for a selling price of $500 to $1,000 over invoice depending on competition in your area.

    With this setup, if you lease a base car with sunroof (MSRP $41,050) your cap cost at $700 over invoice (assuming you qualify for loyalty and AZX) would be $29,588. This equates to a lease payment of $429.12 plus tax with $1,424.12 ($995 + 424.12) plus tax, tag, title, and DOC fees due at signing for 60 months at 12k per year. A 60 month lease makes sense here because of the 60 month warranty, maintenance, and wear and tear coverage with these vehicles. You should most likely be able to get out of this lease after 3 years anyway with minimal penalty because of the low initial cap cost. Or, you can buy it at the end of the lease for only about $9,000.

    I personally think this is currently one of the best deals in the automotive industry.

    Hope this helps
  • mismaloyamismaloya Member Posts: 5
    Great response- Thanks. I happen to agree that this sounds very good. I have been leasing BMW's but the recent bump in residuals and money factors has me looking elsewhere. I think the S80 is a solid vehicle. I wasn't considering the 60 mth lease but the maintenance plan does make it a real option.
    Question- what is AZX?
    Thanks
  • autoboy19autoboy19 Member Posts: 155
    AZX is the Ford employee, retiree, and supplier price program. If you or a family member works for Ford, you get a special PIN number to be used on transactions. Also, you get PIN number if your company is one of the ones considered a "supplier" for Ford Motor Company, of which there are a lot. Also, don't know what your monthly payment budget was, but an interesting thing to consider is that S80 T-6 residuals are 2-3% higher across the board, while the money factors are the same, meaning you can lease a similarly equipped T-6 for not much more than a 3.2.
  • mismaloyamismaloya Member Posts: 5
    Thanks for the tip. My company is a supplier and I just downloaded the PIN# and form. Now all I need to do is go find a dealer and cut a decent deal. The T-6 is the car I am going to get. Nice performance upgrade from the 3.2. I'll do some shopping this weekend and let you know how it works out.
  • wokscottwokscott Member Posts: 8
    For a 2010 Volvo S80 T6 base w/ 12,000 miles per year for 60 months I have been offered a payment of $519 w/ $0 drive off. This is the GM's car now and has about 1,000 miles on it. What do you think car man? Do you think there might be some more room there? I need to make a decision soon...
  • zamozamo Member Posts: 122
    The payment looks ok, but the term is just horrible.

    60 months of payments = $31,140

    You might as well just get a loan and purchase the car instead.
  • mismaloyamismaloya Member Posts: 5
    Definate room.
    What's the selling price of the car?
    What's the final cost of the car after all the lease incentives are applied?
    What's the residual?
    Rate factor (Interest)
    Make them show you and....shop the exact car at another dealer to compare.
  • raythomasraythomas Member Posts: 5
    You can do better I've been offered same car for less than 500/mth on a 39 mth lease.
  • zamozamo Member Posts: 122
    with $0 due at signing?
  • raythomasraythomas Member Posts: 5
    Just bank fees and taxes up front.
  • car_foolcar_fool Member Posts: 4
    I was attracted by some of the promotions posted by Edmunds for the Volvo S80: $3500 marketing support and $5000 alternative lease assistance cash. On top of that, if one works for an employer for which there is an A,Z or X plan, you also get almost the invoice price. The total saving is around $10,000 below MSRP.

    :) Sounds like a no-brainer to me!

    But be careful: something is too good to be true. Let’s take a hypothetical case posted in #223: Standard White/Black Leather MSRP $40,425
    Assumed Cap Cost: 30,000, Money Factor: 0.00224.

    In the beginning, it sounds pretty good, but once I got the monthly payment estimate, it is close to $500 (including everything, tax rate of 9% for leasing) with about $1500 down. You can almost rent a BMW 5 series for this much.

    :confuse: So what is wrong?

    To get the $5000 lease assistance cash, you have to go through a third party bank like US bank. The residual value for a 36 months (12K) lease is 40%, compared to 60% for BMW or Toyota (See post #228) . For such a lease, you are also paying the high acquisition cost ($900 compared to $500 for Toyota or $725 for BMW), and you have to pay 9% tax instead of 6% (because of leasing in PA) for both the depreciated values ($30k - $40k*40% = $14k) and interests. You can also do the math for a 5 years lease around 24% residual value.

    The question then is: can I pay cash and still get the $5000 rebate and I can save on the acquisition fee, tax rate (6% vs. 9%) and tax on the interests.

    :mad: Unfortunately, No!

    Someone may wonder that with such low residual value, you can just buy the car at the end of the lease, and you still pocket the $5000 rebate. Sounds right? But if you put the all the numbers together, the cost of buying it now (without the $5000 rebate) is very similar to that buying after leasing. It’s because you are paying more for the lease due to the following factors: inflated depreciation value, added cost due to fees, and higher tax rate (this is only true for states with higher tax rate for leasing).

    :shades: What a learning experience! Thanks Volvo!
  • car_foolcar_fool Member Posts: 4
    After learning the promotion, I too felt that Volvo is offering a very good deal. But after my visit to my local dealership and getting the number, I don't think that deal is that good given the low residual value for a Volvo, especially if you want to buy it. I had posted a link on the topic of residual value in this forum.

    I would like to hear your thoughts on this.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mismaloya. Volov is currently providing $3,500 dealer cash and $1,000 loyalty cash on the 2010 S80. There is an additional $5,000 cash incentive for leases of this car through independent banks.

    Car_man
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  • kellicharesekellicharese Member Posts: 4
    Does anyone know the current incentives for the S80? I am a 'newbie' in leasing, so I appreciate any help/insights anyone can offer.

    I live in Michigan and was offered the following terms: 36 months, 15,000 miles per year, the payment is $457 with $1500 due at signing (I currently have an S60)/

    What other information should I request in order to evaluate the deal?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome kellicharese. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In short, the easiest way to negotiate a good deal on a leased vehicle is to shop around for the lowest possible selling price and then have the dealer that you end up going with calculate your vehicle's payment using its buy rate lease money factor.

    Volvo is currently providing a $4,000 dealer cash incentive on this car. As such, if I was in the market for one right now I personally would shoot for a selling price of $3,000 to $3,500 below invoice. You can look up the exact invoice price for the car that you're interested in over in the New Vehicle Pricing section of Edmunds.com.

    Once you have arrived at a selling price that you are comfortable with, have the dealer calculate your car's payment using US Bank's current buy rate lease money factor of .00036 (for a 36-month lease of an S80 3.2). Volvo runs all of its official leases through US Bank now.

    Car_man
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  • kellicharesekellicharese Member Posts: 4
    Hi Car_man-

    I was offered the following deal: $30,961 Final price
    $17,300 residual, $1500 down (including start-ups) = lease payment of $414/month. Does this sound reasonable? I'd have to take delivery from dealer stock and am considering purchasing the vehicle after the lease is up.
  • autoboy19autoboy19 Member Posts: 155
    Car_man,

    Do you have the base money factors on the S80 T-6 and S80 V8 AWD for 36 and 48 months as well as the S80 3.2 for 48 months?

    The residuals and money factors I have been told now are as follows for 15K miles per year through U.S. bank, but the base money factor on the 3.2 does not match up with your previous post. Are the following correct?

    S80 3.2 (36 months) 43% and .00066 (48 months) 32% and .00099
    S80 T-6 AWD (36 months) 45% and .00089 (48 months) 33% and .00116
    S80 V8 AWD (36 months) 40% and .00116 (48 months) 30% and .00141

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kellicharese. It's outstanding that you know what selling price the dealer is charging for this car, but it is difficult for me to evaluate this deal without knowing this car's MSRP as well. Let me know and I'll tell you what I think.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi autoboy19. Here's the information that you're interested in. US Bank's current lease money factor and residual value for a 36 month lease of a 2010 S80 T6 with 15,000 miles per year are .00092 and 45%, respectively.

    The numbers for an otherwise identical lease of a '10 S80 V8 AWD are .00122 and 40%.

    As you can see, these residual values are pretty bad.

    Car_man
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  • mjalapenomjalapeno Member Posts: 2
    I have this offer on the table. Sounds pretty good to me, but maybe I'm a dope. Thoughts?

    60 mo/ 10K miles - $550/mo. zero out of pocket, PLUS covering 1600 remaining on current lease.

    money factor: 0.00137
    residual: 26% of MSRP of $43,150 (climate, sunroof, metallic, PCC)
    selling price is $36,100
    loyalty rebate of $1500 is used for capped cost reduction.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mjalapeno. I personally would not sign this deal. In my opinion, 60 months is way too long a lease. A lot can happen over the course of five years. Your commute could change, causing you to be waaaay over your low 10,000 mile per year mileage allowance. Your family situation could change causing you to need a larger or smaller vehicle. You could just plain get sick of the car, etc...

    Furthermore, this car only comes with a four year warranty. This means that you will have to pay for any problems that your vehicle has during the fifth year of your lease out of your own pocket or have to pay an excess wear and tear penalty when you return your vehicle.

    A 26% residual value is terrible. At that point, you might as well finance this car for five years and actually own it when your all done with payments. In fact, you can actually finance a 2010 S80 through US Bank right now at 0% for six years. That probably the way that I would go if I was in the market for this car.

    Car_man
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  • mjalapenomjalapeno Member Posts: 2
    Car_man, I'm glad I didn't do anything in January... but now the dealers are telling me that I can't get the s60 bonus cash of $3K and get the 0% for 72 mos. Is that true? I see on the Edmunds site where the $4K to the dealer can't be applied, but it says nothing about the $3K for s60 owners.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mjalapeno. Volvo did introduce 0% financing for 72 months on the 2010 S80. That's a heck of a deal. Whether this offer is compatible with the loyalty cash is a very good question. I know that the $3,000 loyalty for current S60 owners drops to $1,500 on leases, but I'm not sure about on APR contracts. One would think that the lower cash allowance would be available on finance deals as well, but I don't know that for certain. You might want to try contacting another dealer or two and seeing what they say.

    Car_man
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  • vancouver83vancouver83 Member Posts: 30
    Hi CarMan,

    Can you please give me the residual and money factor on this car? Also, there seem to be some interesting incentives, anything you could share would be great.

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi vancouver83. You never mentioned how long you want to lease for or what mileage allowance you need, so I'm going to have to make some assumptions. Let me know if you want something different.

    Volvo's current lease money factor and residual value for a 36 month lease of a S80 V8 AWD with 15,000 miles per year are .00081 and 38% (ouch), respectively.

    When negotiating your lease on this car, make sure to take advantage of the large $6,000 dealer cash incentive that Volvo is currently providing on it.

    Car_man
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  • vancouver83vancouver83 Member Posts: 30
    Thank you Car_Man.

    Wow! That 36% is a real game-changer. I see the V8 listed for approximately $45,000 at the dealership with an MSRP of 55,000. I was hoping to get an additional $2000 off the 45 for being a volvo customer and another $4000 for not using the 0 percent financing (basically leasing it). Is this the 6000 you are referring to? I think there are some other allowances that may have already been made to make the price 45. What do you believe is a reasonable price. The only thing I would add to the V8 would be climate package and possibly the sports package (

    Anyway, with the 36%, dont think that a lease is practical. Do you know what the residual is for a 12,000 miles per year for 36 months? How about 12,000 per year for 48 months.

    Thank you so much in advance. You are providing such a valuable service. I feel so much more confident when dealing with the dealers.

    Warm regards,
    Vancouver83
  • autoboy19autoboy19 Member Posts: 155
    Car_man,

    Is Volvo still providing lease support for the 2010 Volvo S80s? I know last month they still were. If so, I would like to know the rates for the S80 V8 for 36 and 60 months at 15k miles per year.

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey autoboy19. Unfortunately, in October Volvo pulled the plug on its lease support for 2010 models.

    Volvo is now providing $5,500 in dealer cash to help dealers unload any remaining 2010 S80s.

    Car_man
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