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Volvo S60 Lease Questions

735 messages,  Last post on May 19, 2013 at 9:03 AM

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What is this discussion about? Volvo S60, Volvo S60 R, Car Leasing, Sedan

Messages Page 31 of 74

#298 of 735 Re: 2007 S60R lease incentives - new deal [bornracer] by Car_man HOST

Dec 19, 2006 (5:37 am)

Replying to: bornracer (Nov 30, 2006 12:29 am)
Wow, bornracer, you are getting a discount of $11,290 on this car. That is a very low price. The last time that I checked, Volvo was only providing a $5,500 cash incentive on leases of 2007 S60 R models through independent banks, so this selling price looks great. I don't see where the $9,500 came from. Independent banks do not provide cash incentives on vehicles.
 
I do not personally keep tabs on the lease programs that are being offered by independent banks, just those for manufacturers' captive finance companies, so I can't tell you what U.S. Bank's buy rate is for this car right now. I can however estimate how much this car would cost to lease through Volvo Finance right now to give you a payment to compare the one that you were quoted to. According to my calculations, if you were to lease a 2007 Volvo S60 R with an MSRP of $47,290 and a selling price of $41,593 ($500 over the $44,093 invoice price minus $3,000 lease cash) through Volvo Finance right now for 48 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $502. As you can see, you actually might be better off leasing this car through Volvo Finance than through an independent bank.
 
Car_man
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#299 of 735 Re: Volvo S60 lease [dmauto] by Car_man HOST

Dec 19, 2006 (5:46 am)

Replying to: dmauto (Dec 03, 2006 11:42 am)
Hello David. The payment that you mentioned looks pretty attractive to me, but in order for me to give you a detailed analysis of this deal I need you to provide me with this car's selling price. This is an important number 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 the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.
 
Car_man
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#300 of 735 Re: lease questions [bornracer] by Car_man HOST

Dec 19, 2006 (5:55 am)

Replying to: bornracer (Dec 06, 2006 6:11 am)
Hey bornracer. What you have heard is correct. Consumers who make large down payments on leased vehicles risk losing them if their vehicle is totaled in an accident or stolen and never recovered. If you want a lower monthly payment for your lease and have some money, making additional security deposits would be a better use for it. The last time I checked, Volvo Finance allows its lessees to make up to ten six additional security deposits on leases, with each additional deposit reducing the money factor that is used to calculate their vehicle's monthly payment by .00006. I believe that security deposits are refunded on vehicles that are totaled, but you probably should check with Volvo Finance or the F&I Department of the dealership that you are working with to be sure.
 
Lease contracts are pretty standard. I doubt that you would be allowed to modify a bank's standard lease contract. You can find out more information on Volvo Finance's lease-end inspection process and wear and tear guidelines by visiting the following site: Volvo Finance Lease-End Process.
 
Car_man
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#301 of 735 Re: 2007 S60R lease incentives - new deal [Car_man] by bornracer

Dec 19, 2006 (7:49 am)

Replying to: Car_man (Dec 19, 2006 5:37 am)
Thanks Car_man.
 
Yes the dealer stated $9500 off from US Bank with 6.25% tax covered.
 
Can you let me know what MF you were using for volvo finance and residual?
 
DOes the US bank rate seem high from what you have seen?
 
Bornracer

#302 of 735 Re: 2007 S60R lease incentives - new deal [Car_man] by volvomax

Dec 19, 2006 (9:23 am)

Replying to: Car_man (Dec 19, 2006 5:37 am)
Not even close.
VFNA has no subvented program for the S60R.
Take the incentive and go to a bank.

#303 of 735 Re: Lease Deal Analysis [mskrin99] by Car_man HOST

Dec 21, 2006 (12:13 pm)

Replying to: mskrin99 (Dec 16, 2006 5:53 pm)
Welcome mskrin99. 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.
 
The car that you described has a spread of around $2,500 between its full MSRP and dealer invoice price. You were quoted a whopping $11,675 discount on this car. It appears as though you are leasing this car through an independent bank. Volvo is currently providing a $3,500 cash incentive on leases of 2007 S60 2.5T AWD models through banks other than Volvo Finance. This gives you a total of $6,000 to work with. I'm not sure where the other $5,000 and change discount is coming from here, but to give you a point of reference, I will calculate how much it would cost to lease this car through Volvo Finance right now. Let's say that you were able to lease it through Volvo Finance with a $2,000 discount, which would be right around $500 over invoice. According to my calculations, if you were to lease a 2007 Volvo S60 2.5T AWD with an MSRP of $38,675 and a selling price of $33,675 (a $2,000 discount minus $3,000 lease cash) through Volvo Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $449. With a $1,300 down payment like you mentioned in your post, this payment would drop to around $412.
 
You're right about the bank fee being too high. I don't know exactly what sort of acquisition fee the independent bank that you are leasing through charges, but Volvo Finance only charges a $595 acquisition fee on leases.
 
Car_man
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#304 of 735 Re: 2007 S60R lease incentives - new deal [bornracer] by Car_man HOST

Dec 22, 2006 (9:54 am)

Replying to: bornracer (Dec 19, 2006 7:49 am)
Hi Bornracer. I still think that it is strange that US Bank would offer any sort of cash incentive on a lease of a vehicle. Manufacturers' captive finance companies' have an incentive to provide cash on vehicles because they help their parent companies sell vehicles, but independent banks do not. Anyhow, Volvo Finance's current buy rate lease money factor and residual value for a 48 month lease of a 2007 Volvo S60 R with 12,000 miles per year are .00080 and 42%, respectively. The money factor that you were quoted for US Bank, .00232, isn't terrible. It's equivalent to an interest rate of around 5.568%.
 
Car_man
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#305 of 735 Re: 2007 S60R lease incentives - new deal [volvomax] by Car_man HOST

Dec 22, 2006 (10:30 am)

Replying to: volvomax (Dec 19, 2006 9:23 am)
Volvo Finance definitely is providing special lease money factors on the 2007 S60 R in many parts of the country. Having said this, one may indeed be better off taking advantage of the cash incentives and leasing through an independent bank.
 
Car_man
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Prices Paid Forum

#306 of 735 Re: 2007 S60R lease incentives - new deal [Car_man] by volvomax

Dec 22, 2006 (10:40 am)

Replying to: Car_man (Dec 22, 2006 10:30 am)
Umm, they are providing special lease rates on the V70R.
The program we have is good in all markets except NY.

#307 of 735 Re: 2007 S60R lease incentives - new deal [volvomax] by iaswede

Dec 25, 2006 (2:53 pm)

Replying to: volvomax (Dec 22, 2006 10:40 am)
volvomax,
 
would you be willing to share the basics info on those lease rates? The volvo website never seems to have any information on leases, perhaps designed so you need to visit the dealer.

Messages Page 31 of 74

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