Anyone with experience leasing a volvo, please give me your thoughts on this deal:

I'm looking for an 2007 S60 2.5T, Red extrerior, Beige
leather interior, premium package. I sent an email to a local dealer.

Dealer sent this:
Here is the Lease pricing on the S60 2.5T
2007 S60 2.5T Red with off black Upholstery,
39 Months Lease
MSRP $36,265
Initial Cap Cost $26,265
Expected Miles a Year 12,000
Total Monthly Rental $482.00
Amount Due at Start $680.00

I replied to dealer:

$482/month for 36 months is $17352. That is 66% of the
selling price of the car (a residual of 34% at 3 years
with 36,000 miles).

Something sounds way off. The residual, money factor
or interest rate. The price/month should be significantly lower.

As I said in our phone conversation, a similarly priced Honda can be had for low 300's per month with the same lease terms.

Dealer replied:

Here is the info on the S60 I e-mail you.
Lease Factor 0.00305
L.E.V 37.00%
Amount Due at Start $850.00
Lease End Value $13,416.20


Does this sound right, or like a reasonable deal?
Thanks in advance.

 

Deals are aplenty on S60 currently. He can do better than that. Relative just bought a S60 07 new same as yours above. Forget about Man Sugg Retail price. They are discounted 8 grand right now, plus he got X plan pricing. Price was 24,290.

He could have leased one for 350 per month no money down. I don't deal in residuals and MSRP and so on to figure out the lease. There is so much BS to confuse you. If you feel you are better off driving an Accord for 150 less per month, then do it.

The Accord actually will probably be worth more than the Volvo after 3.5 years anyway. Volvo's depreciate much faster than Hondas'.

You can easily get an 04 off lease for $17 grand approximeately. In the span of that lease terms you mentioned you would have paid off the 04 and still be left with a car worth approx 8 grand or more. Is it worth 9 grand to drive a "new" car?
http://cgi.ebay.com/ebaymotors/2-5T-...QQcmdZViewItem

 

I didn't realize volvo's depreciate so much. I prefer the style, safety and drive of the Volvo but I know Honda's are very reliable. It would be a difficult decision to justify $5850 (almost a quarter of the volvo purchase price) difference over 39 months for the Volvo over the Honda at the 480/month quoted price.

I used the Honda Accord as a comparison because it is similar 'on paper' at the 26k price the '07 S60 is going for in this case.

Thanks

 

I also question the inflated lease payment. $482 seems like alot. Right now Volvo has the 'sign and drive' event going on. Starting at $379/month nothing down. Slightly lower miles/year (10,500) but maybe it works for you.

FredMc brought up a great point that buying one off-lease could be better financially. Same body-style, just a whole lot less dough.

 

It comes down to what a lease is: Paying for depreciation!

As you can see on Edmonds.com, recent volvos have depreciated rapidly. This is WONDERFUL news for folks like myself who picked up a late-model CPO, but baaaad news for a lessee. Let me tell you: This is a wonderful car, and no Honda badge can compete. Now, if you're talking Acura, the TL is a helluva car. But Honda v. Volvo is not apples-to-apples. It's just not.