I got a lease offer from a California Volvo dealer offering 10k off sticker price so S60 leases. The received the attached quote for an S60 T5 and have some questions. This is my first lease so please be gentle…
What is the ‘monthly rent’ on this quote? I’ve read through all the leasing 101 docs and reviewed a number of offers in this section and never seen a rent cost.
Rate, they have it listed as .77, that can’t be the money factor? Maybe the ‘rent’ is the interest, but what’s this Rate and what is the MF or APR?
Finally, same quesetion that everyone asks, is this a good deal? Should I lease it?
Rent is interest stated in terms of money factor. .00077 is the June MF for S60 T5 Momentum according to Edmunds. I’m on the other coast and am looking for one of these myself. But, this looks to me like an Inscription with a 54% residual, which would be MSRP of $45,020. The experts here are going to ask you for the MSRP and a breakdown of discounts from the dealer, Volvo, and whatever else (e.g. loyalty, Costco) you have. I’ll be interested in reading what they have to say.
So base MF per Edmunds and a healthy discount with no bogus add-ons looks like a good start. You’ll have to check whether there are any incentives available to you.
I would drop the $1,315.49 cap reduction out of the due at signing. If you can float it put down 10 MSDs to drop the MSD to 0.00027. Your monthly goes to $346+ tax. Your drive off should be $1,063 + $4k MSDs.
Some napkin math and haven’t verified all incentives yet , but looks like even with loyalty/conquest, A-plan or any affinity pins, you are at around 9% dealer discount which isn’t bad at all given the production of S60 is pretty much halted.