Hey Folks,
I need some help.
My lease is almost up on my '04 S60 2.5T (~65K miles).
It's been a great car. Really.

The sales manager at the local dealership suggested that I lease a new one instead of buying mine.
He tried to scare me by showing me a big fat repair bill (~6K)from somebody else's car.
Is that reasonable? If I shouldn't buy the car, thenwho should?

Can you guys show me some S60 "Lease verus Buy" wisdom?
(My residual value as stated in the contract is $14,678)

Also.. and perhaps most importantly, what's a reasonable length of time for an S60 to last?
100K, 500K?
TIA!
-Sean

 

How much does it cost to buy the car?

 

Red, Thanks for taking a look.
I'm looking at the contract paper work:
In Nov of 03, the 'agreed upon purchase price'was $32606.00.
The residual value is $14,678.05.
According to the paperwork, I can purchase the vehiclefor the residual value + $150+ taxes.
-Sean

 

So he's trying to convince you that you should lease a brand new car rather than buy the current car that you're leasing right now?

Seems to me, that he's trying to get you to pay higher payments and at the end, you don't even get to keep the car.

I don't know much about how leasing works, but imo, seems like he's looking out for his interests rather than yours. But wait until some other people chime in before you make an actual decision...

Also note, that the 6k repair bill is stupid because you dont know how that guy treated the car, and in your case, you know exactly how the car was treated. So unless you've been beating on it, I wouldn't let that 6k repair bill scare you away.

 

Red has a good point. You know exactly how the car was driven. If you like it and haven't had any big problems and you don't want to get into a higher payment, with still no ownership, then I would definitely look into buying the car.

 

I just did a KBB look up for the value of this car. The Private Party Value in GOOD condition is $15,680 and in Excellent it's 16,810. You are the one who know's best what shape this car is in. If you really like the car I would buy it in a minute for that price, but if there is a reason to get rid of it then don't buy it. The Retail Value in Excellent condition, what the Dealer will try get for the car, is $19,010. Now why in the world do you think they want you to trade it in?

 

Red, Jks2, and JimKW,
Thanks for the invaluable input guys.

Buying the car is clearly the better option. I'm going for it. It's good deal. I know the car.

Hah... the Sales Manager is definately not looking out for me. He told me that ifI wanted to buy the car, I would have to'settle out the first contract'.. Eg.. I would have to pay the ~$1000 in excess miles before I could buy the car. He said something to the effect of "Noo...you can't just run up the miles and then turn the car in. You have to pay out the $$first.Duh. We've figured out that trick that customers would pull on usa long time ago"

Volvo Financing set the record straight for me. When I challenged the Sales Manager he said that he would look into it. He did. He apologized. He said that he didn't know what he was thinking. Hah! He's been on the job for several months now.. probably 6 months or longer.

Anyways.. thanks guys. Once I become a real owner, I might be popping around the S60 forums.

 

Hope you do. I think you are making a wise decision.

 

Good luck. Gladyou got them straightened out on the buyout. I stay away from leasing cause I don't want somebody telling me how many miles I can drive my car.