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2006 XC70 <br>Ext: Black<br>Int: Graphite<br>Premium Package<br>Convenience Package<br>Climate Package<p>Stickers at: $41,660 <br>Residual: $16,664<br>Term: 36 Months<br>Milage: 12k per year<br>Out of Pocket: $744<br>Monthly Payment: $537.56
 

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Re: Is this a good lease? (hewinutah)

You would need to provide additional information, like the money factor, to get a definitive answer. Money factor is the equivalent of interest rate.<p>However, based on the information provided, it looks to me like the residual value is quite low. It calculates out to 40% of original sticker after three years, which is low. Most depreciation/residual tables usually show about 50% after 3 yrs, not 40%. <p>You might want to try leasecompare.com
 

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Re: Is this a good lease? (hewinutah)

Hew,<p>A couple KEY numbers not listed -- what's the cap cost, i.e. the actual cost of the vehicle to the lease company, and what's the money factor -- which translates to an interest rate for the money? As you know, a lease is basically just a loan on the difference between the purchase price and the value at return (residual), plus some fees.<p>Sticker price is irrelevent these days. I prefer to work from invoice and subtract incentives as (almost) the true cost of the vehicle. Remember the dealer pays less than invoice for the vehicle. Most will do invoice minus incentives plus $300 or so on a car like the XC70. Some will forgo the $300 as did my dealer.<p>Your salesperson should, as mine have always done, show you the invoice, current incentives, lease origination and disposition fees, money factor, residual (as a percentage of MSRP), and over mileage rate. Also does the monthly payment include sales tax if it applies in UT? If they can't, or won't, put these numbers on the table you should wonder why.<p>Comparing to my lease started last June, my sticker was a bit over $44k, cap was about $36k after $5.5k in incentives (they got better soon thereafter and 6 weeks later included two free season ski passes). My residual is somewhere around $21K for 15k miles/year (overage @ $0.18/mi). Out of pocket was first payment, which is about $30 more than yours including about $30 in sales tax. FWIW, I will probably purchase the car at lease end but wasn't sure when I made the deal.<p>Your residual (40%) seems low for 3 yrs & 36K so it could be a good deal if you intend to purchase at lease end. If you plan to return it find a lease with a higher residual to reduce your monthly payment.<p>You might check with Yannis and Bob to see what they can offer. Both seem like upfront salesfolk and you could save more than enough to finance the trip to the east coast to pick it up!<p>You should also look at OSD. After getting my XC70 locally last summer we're picking up our V50 in Sweden next month. Good deal, though perhaps less attractive on the XC70, and a fun trip. I now wish we had done an OSD for our XC70.<p>Good Luck!<p>Jack<p><br>edit: gosh, posted a full half hour after timyerby, didn't realize it took me that long to wordsmith!
 

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Oops, sorry I didn't realize that you double posted....let's close this thread and everybody move to the General Forum
 
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