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Booster seats
Grocery Bag Holder
Wood inlays
Sunglass holder
If you don't care about the booster seats then the Adventure package is probably better. Also, the Advneture has a 6 CD changer...if you want that. Most people are using ipods, so my guess is they're trying to get rid of some extra changers. But all in all, it doesn't seem to be any big savings. Looks like it's more of a marketing move...my guess is they ran out of the booster seats (the 2008s have newly designed ones), but they still wanted to offer some of the other convenience package options, hence the "Adventure Package."
We are looking to lease a 2007 XC70 w/climate/convenience/premium and bi-xenon lights
The dealer told us about the $3,000 lease incentive w/Volvo finance but did not mention any $9,000 incentive with a bank.
He offered for 15,000 miles/year for 36 month lease
Price: 34,000
Residual: 17,635
Money factor: .0027
$599/month for 35 months with no money down
$405/month with $6,000 trade-in and no money down
$350/month with $6,000 trade-in and $1440 down
My concern: I am seeing cap costs of 29,000 here on the forum, but residuals of like 20,000.
I like our residual, and the price is a fair one: I don't need to gouge
But should I look into the $9,000 lease incentive through a private bank? IS this something I need to ask the Volvo dealer or should I just call a bank to find out?
Thanks - I have never leased before
Spoke with dealer today who has 6 Adventure package models on his lot and he said they do include the booster seats. I have not seen the cars in person and was wondering if you have seen the Adventure model in person. Booster seats are key factor for me and don't want to drive 40 minutes to hear "oh, I meant the other models" or some other snow job from salesperson.
thanks
MSRP 43,500
Invoice 40,500
Residual 42% (US Bank #'s)
Money Factor .00217 (US Bank as of last week)
Term 36 months
THis gives you a residual of $18,720.
Monthly payments are $457.75 before tax. This assumes you get the car at invoice, and you might want to assume a few hundred dollars over invoice. If you throw in all the upfront costs (about $1700 including 1st month payment) and dealer profit of about $500...the monthly payment is $525 before taxes.
Thanks again - it looks like a pretty good deal to me.
Volvo Lease Program - which I need to do because it helps tremendously with my local jurisdiction Personal Property Tax
MSRP: $38,915.00
Sell Price: $36,821
Bank Fee $595
Title: $195
Rebate: $2,400
Sale Price: $35,211
Residual: 59%
Purchase option: $23,459.85
Miles: 10,500/YR
Factor: .63%
24 Mos
Base Payment: 547.11
7% taxe: 41.70
Total Payment: $588.81
$650.00 due at signing which is the sec deposit.
I would look at a 36 month if I can get the payments lower.
Anybody out there (Car Man?) know what the terms of the current VFNA 24/24 lease would be? I believe that there is a change scheduled for 7/9.
Thanks for any help.
John
But. is this one of the few times where it does? Even if you add back in the not so hidden "bank fee", "application fee", etc. it looks like you are getting at least a discount of $8700 from Volvo. Apparently, the best Volvo purshase incentive is 4k. Now, I know that most people turn a car in with more miles on it than the lease agreement and pay thru the nose for excessive mileage, etc. But it seems that right now Volvo has stacked the deck in favor of leasing AND in three years, the new style V70s will have been tested and ready to purchase.
We hate the idea of leasing. Enlighten us. Or, are we just preaching to the choir?
Good luck!
-Michael
1. Your rate of interest (converted to a "money factor" in lease terms) is often significantly lower than straight-out purchase financing. (And unless your investments are making less than 6.5%, the average finance cost, you should ALWAYS finance).
2. The residual value is often overestimated... that is, if you went to sell your newly purchased car in 2/3/4 years, it wouldn't be worth as much as Volvo is optimistically hoping it will be.
3. By agreeing on a residual value up front, you remove ALL RISK associated with depreciation. This is HUGE! Gas prices shoot up to $20/gal, or new technology comes out and your car is suddenly worthless. Who cares? The financing company eats the loss.
4. Even better, you always have the option to purchase. If the market goes the other way (and your residual is worth more than they thought), you have the option to buy at a predetermined price! You have all the potential upside and none of the downside.
Really, though, if you have some economics / finance background, just price both options out (including when you think you'll finally sell a purchased version) and do a simple NPV. Go with the option that costs less. If you really wanted to get sophisticated, you could use Black-Scholes to calculate the value of the purchase optionality.
Anyway, some thoughts...
Aepheme
* [Of course, if you don't want a new car, then purchasing a used vehicle will always be less expensive than either buying new or leasing new... but then you're also taking on a large amount of repair risk (could cost time and money), you're sacrificing the newest safety features (how much is your life worth?), and you're driving something that's probably less luxurious.]
Just for kicks, what if a grad student were to work on and publish an Black Scholes do it yourself kit for potential leasees? Give me a clue, how would the kit start?
More to the point, sure leasing looks attractive IFF you are the kind of consumer who is has to be in a not-more-than-three year old car. To my way of thinking, the sweet spot is something between two to 8 years old. Like our impeccably well maintained '01 XC that now is just printing money for us.
Moreover, I think that the acquisiton, application, and disposition costs associate with leasing easily can total $1300. We won't even mention excess mileage and "wear and tear" charges.
Actually...leasing is so cheap right now, used cars are even more expensive! A used 2006 or 2005 XC70 with similar features and low miles is in the $30-$35K range. We got a brand new leased one for $30K!
I know this is not normal....but Volvo is offering such big incentives right now it's hard to find anything better then leasing.
I've never leased before and always thought it was ridiculous. But in this particular situation, the smart $ is on leasing.
Does anyone have the new numbers for July? I am looking at a 36 month lease, 25,000 miles per year. The dealer told me today that the residual went down about 2%. Thanks
Dennis
For example,
1) Pricing. How did you get to 30K on a new leased XC70? The max discount is 10K PLUS lots of fees. Could we agree that your total cost to acquire (and eventually dispose of it) was closer to MSRP (probably 42K with climate/convenience/premium) less the 10K Volvo discount PLUS say $1500 in lease fees? This totals $33,500.
2) In my Northeastern zip code, there are tonite on cars.com perhaps 15 or 20 very low mileage '07 XC all with climate/convenience/premium for roughly 34-35K ASKING. If one speaks nice to them on the very last business day of the month, you will go home in one for 32K or less. And it will be yours. With no mileage charges. Without any high residual so you can't get out of the three year lease cycle. And if you speak real nice real late at night on that last business day of July, maybe you can get it Volvo certified out to 100K miles. That if you are still with me, is a better warranty than on a new unit.
I can't speak for the NE. I just checked Autotrader for Seattle. Only one recent used XC70 under $30K...was a bare bones one with 26K miles for $26. I got A new XC70 totally loaded with free 3 years of matinence, cross bars, a full 4 years of warranty for $30K. See why leasing was a better choice?
I can't speak for other deals, but this is the deal that I just got for a XC70 with Adventure package on June 25th in the Boston area.
Purchase Price = $29,670
Residual = $20,320
36 months
12,000 miles
$438 per month (includes tax)
only 1st month payment ($438) due at signing
The 1st payment of $438, everything else is included, all tax, title and registration fees.
I originally started looking at a certified pre-owned, but when I do the math the car is going to cost me $36,088 if I choose to purchase at the end of the lease. This is about 6 or 7 grand more than I would have paid for a 2006 used XC70, but I was going to put down about $15,000 if I purchased a car, this way my money stays in my investment portfolio for the next 3 years, making money for me.
Not to mention the obvious advanatage that if we want a new car in 3 years we can have that option as well, but we are planning on buying the car at the end of the lease.
Are you sure about the 29670? What was the MSRP on it? Which dealer did you get this from? I live in MA as well and just had a terrible experience today with Lee Volvo. Thanks
Dennis
- $40,785 list, $8,500 discount
- 7.75% sales tax (Cook County, Illinois)
- $3,500 out of pocket (mostly tax)
- $444 per month, 24-month term
We have not really begun to negotiate. I'm thinking that they can come down a bit more price-wise, perhaps $1,000 - $1,500 based on no negotiation yet. Anyone have advice?
The same dealer is advertising $12K off right now:
http://www.bobbyersvolvo.com/AdWizardAd/5669984
I'd also get them to drop the $3,500 down. I only paid $740, and most of that was my first months payment.
Good luck!
-Michael
I'm in Nashville, so I'm curious as to the current Southeast XC70 lease incentives. Did they change after July 9th (the end of the previous lease program) - better/worse?
From reading this forum I'm looking to strike a deal with one (of the 2) Volvo dealerships in town and would hope to get something like this:
2007 XC70 - Adventure Package (or equivalent climate/convenience/premium together in one vehicle)
MSRP - $42-$43K (Adventure MSRP probably lower)
Cap Cost - about $30K-$31K (bank incentive and dealer discount)
Length - I'm open to 24 or 36 months
Residual - $17K-$18K range (assuming 36-month lease) / Anyone know residual on a 24 month lease?
Cash Upfront - 1st month payment + maybe a small fee (no more than $750 out of pocket total)
Payment - $425-$450 range (including tax)
If the posts on here are legit, I feel like these numbers are achievable. I'd appreciate any insight anyone has on late July lease experience or thoughts of what they may be as we turn to August.
Thanks. Looking forward to joining the Volvo family. I've been a longtime Swedish fan (had many Saabs) - these XC's look like a lot of fun and I've got a brand new baby on the way to protect.
I've got several of the variables lined up, but the residual is killing my payment.
36-month lease
MSRP - $42,090 (Adventure Pkg)
Adj Cap Cost - 30,740
money factor - .00275 (high, but a trade off for the cap cost reduction)
Residual - 40% = 16,836 (seems WAY low) Shouldn't I expect 47% range
Upfront - $700 (incld 1st payment & minimal fees)
Payment - $595 (incld tax)
The residual is dragging the whole deal down. Did it just recently plummet or what? Anyone with recent (last couple weeks) experience, please respond.
Thanks.
MSRP: $42,855
Sale price: $34,899
Volvo Finance loyalty bonus: -$1,000
Term: 24 months
Mileage: 12K
Monthly payment, not including taxes: $427.56
Taxes paid up front, including bank fee and bonus tax: $992.98
Doc fee: $45
Inspection and tire fee: $22.50
Total due at signing, including first payment: $2,083
Money factor: .00026
Residual: 56 percent, or $23,998
Car_man
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Great info-thanks. Can anyone think of a reason why Volvo would offer an additional $5000 out of its pocket to let an independant bank make money on the financing? It would make sense to me if Volvo were making something back on the finance charge but they are giving it away. The reason I ask is that I think we all agree we like the terms of Volvo financing but that additional 5k off is only if we go to another bank. Why should Volvo care?? Give us the additional 5k AND make some interest back vs. 5k AND lose interest money to another bank. What am I missing???
Thanks
I am looking at either at 36 or 48 month lease with 15K per year in miles.
Zero down payment.
Thanks
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I live in a very competative area so I'm hoping I can get a good bank deal.
Thanks
Ed
My thought was the residual may be a little high...but if it's not worth that in 2009 then we will turn it in and start over.
MN
Dean
I am planning to lease (for the first time) a 2007 Volvo XC70 (Adventure Package, MRSP: $42000).
Just got a quote from a local dealer (in Northern Virginia) for a 3yr/12k lease that seems too high to me:
MRSP: $42,070
Sale price: $30,650
Money factor: 0.00215
Residual value: $16,415
The quoted monthly lease payment is $565 (and seems to include sales tax and various fees).
The sale price seems ok to me, but after reading previous message on this board, it seems to me that the residual value is too low and the money factor too high.
Am I wrong? Any idea what numbers (money factor, residual value) I should be expecting at this point?
Many thanks for your help,
MWB