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Volvo S60: Lease Questions

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

You are in the Volvo S60 Forum.

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

Messages Page 1 of 74

#1 of 735 Volvo S60: Lease Questions by Car_man HOST

Aug 31, 2005 (5:34 pm)

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo S60. Thanks.
 
Car_man
Host
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#2 of 735 S60R Lease by urnuts

Oct 05, 2005 (7:04 pm)

Posted in the wrong area.
 
Here's my deal:
 
2005 S60R
MSRP: $42,165 selling price: $35,005
$1000 Acquisition fee
Money factor (I think) is .0021
Residual is: $19,395 (.46)?
12K/year
36 month lease $488/month
Money down is: $3607(Acquisition fee of $1000, first payment of $488, $2000 cash, and about $120 in fees.)
 
What do you think- I like the selling price, but the "deal" has me a bit confused. My credit score is about 750- I think that the acquisition fee of $1000 is absurd!

#3 of 735 Re: S60R Lease by Car_man HOST

Oct 13, 2005 (3:53 am)

Hi urnuts. Your lease must be through a bank other than Volvo Finance because to the best of my knowledge, it is no longer leasing 2005 models. Volvo is currently providing $4,500 dealer cash on the 2005 S60 R. Judging by the prices that you mentioned in your post, you are getting all of this dealer cash and are getting this car for pretty close to dealer invoice. This sounds like a fair deal for this car to me. I cannot comment on the other parameters of your lease because I am not familiar with the programs that is being offered on this car through independent banks right now, other than to say that the money factor and residual value that you were quoted for this car look reasonable to me. You're right about the $1,000 acquisition fee though. I'd say that it is around $400 to $500 too high. Also, you mentioned that you are considering making a $2,000 capitalized cost reduction on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your S60 would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.
 
Car_man
Host
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#4 of 735 Re: S60R Lease [Car_man] by urnuts

Oct 13, 2005 (9:55 am)

Replying to: Car_man (Oct 13, 2005 3:53 am)
Thanks for the help. You are correct, the lease is through Chase (JP Morgan Chase). After reading your responses/comments to the other posters, I now understand that putting money down is NOT a good idea. I think I'd like to do this- but only if they can get the acquisition fee down to $600... max; Just bugs me!
(Volvo Financial charges $575)
The "deal", from the selling price standpoint, seems fair; from $42K down to $35K.
I've just never leased before, and inherently don't like the idea but, I do understand the pros & cons, and think I might try it on this car.
Thanks so much for your help!!

#5 of 735 S60 Lease Offer by mycle

Oct 20, 2005 (12:15 pm)

Volvo Financial currently has a lease offer on the S60 2.5T that I plan on looking into. The car I'm interested in is priced as follows:
MSRP $30,270
Black N/C
Premium Package $2,995
Climate Package $675
Satellite Radio Preparation - Sirius $75
Destination Fee $695
Total $34,710
 
The current advertised lease offer is $299/mo. for 36 mos.; 30,000 mi.; $4,069 due at lease inception ($2850 cap reduction, $595 acq. fee, $325 sec. deposit, and $299 1st payment); on a vehicle with a gross cap cost of $30,191. Buy out is at $16,871 with $395 disp. fee.
 
I plan to try to work out a 36 mo. deal that would require a lower or no cap reduction and a 12,000 mile per year allowance. Given the current Vovlo lease incentives, could you give me an idea of what a fair deal might look like on the $34,710 car I'm looking at? Thanks in advance for any guidance you can provide.

#6 of 735 Re: Re: S60R Lease by Car_man HOST

Oct 24, 2005 (2:53 am)

You're welcome urnuts. Let me know if you have any other questions.
 
Car_man
Host
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#7 of 735 Re: S60 Lease Offer by Car_man HOST

Oct 24, 2005 (3:01 am)

Hi mycle. After taking the down payment into account, it appears as though the advertised lease that you mentioned is based upon a selling price that is just over $1,600 under full MSRP. This is a reasonable selling price, so let's use it to estimate the revised lease payment that you are interested in. According to my calculations, if you were to lease a 2006 Volvo S60 2.5T with an MSRP of $34,710 and a selling price of $33,041 through Volvo Finance right now for 36 months with 12,000 miles per year, its zero down pre-tax monthly payment should be around $411.
 
Car_man
Host
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#8 of 735 November MF & Residuals for S60 2.5T FWD by rugby_s2k

Nov 24, 2005 (5:08 am)

Trying to tie-down the November MF & Residuals for a 2006 S60 2.5T.
  
Can't seem to find any info on MF.
  
Residuals for would be for the following terms:
24/12k
24/15k
  
36/12k
36/15k
  
I need to close a lease prior to month end as my current car is due back on Nov 29. Your assistance would be appreciated.
 
Lastly if a 'host' is responding, could you check my similar post in the Saab 9.3 forum as those are the two cars in the running.
 
Thanks,
Michael

#9 of 735 Re: November MF & Residuals for S60 2.5T FWD [rugby_s2k] by Car_man HOST

Dec 04, 2005 (8:03 am)

Replying to: rugby_s2k (Nov 24, 2005 5:08 am)
Here's the info that you're looking for, Michael. If you were to lease a 2006 Volvo S60 2.5T through Volvo Finance right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00001 and 61%, respectively. Its numbers for an otherwise identical 36 month lease should be .00008 and 51% in most areas.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#10 of 735 Re: S60R Lease [urnuts] by philzey

Dec 21, 2005 (1:54 pm)

Replying to: urnuts (Oct 05, 2005 7:04 pm)
I got my lease in Dec. of 2002 and it was through Chase Manhattan. My acquisition fee was $650. I formerly worked at a car dealership and can tell you that acquisition fees vary among banks. In the future, it's just one more thing to remember when you're negotiating, if it's that important. Even with my experience, it's difficult to remember every little detail to make sure I'm getting the best deal. Leases can be complicated. I can also tell you that Chase is better and fairer than most other banks when it comes to leases. Definitely better than Wells Fargo or B of A. The extra $300 is very little in comparison to what the overall cost might have been through a different bank, including Volvo Finance (they're on drugs).

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