How does a Volvo lease work?

Considering a Volvo for your next car?

Volvo has recently unveiled several exciting new electric vehicles, including the EX30, EX40, and ES90 saloon.

Known for their exceptional safety and dependability, Volvo's sleek Scandinavian style and wide range of vehicles make the brand a popular choice with both families and professionals alike.

Buying a brand new Volvo would set you back a minimum of £32,000, so leasing is a smart choice! But how exactly does the leasing process work, and what costs are involved?

We'll break down how Volvo leasing works for you in this blog.

How does leasing a Volvo work?

When you lease a Volvo, you pay a fixed monthly cost to borrow it from the leasing company.

Car leasing contracts typically last 2-4 years. During this time, you pay the leasing company an affordable, fixed monthly fee to drive around in a brand new Volvo.

At the end of the agreement, you hand the car back and either choose a new vehicle and deal or walk away.

How are monthly payments calculated?

Leasing is designed to be an affordable alternative to buying a new car outright. The amount you pay each month depends on several factors, including:

·       The Volvo model.

·       Contract length.

·       Initial deposit.

·       Annual mileage allowance.

·       Volvo residual value.

·       Optional extras and upgrades.

·       Credit rating.

Your monthly payments are carefully calculated to cover the vehicle's depreciation during the lease period, interest charges, taxes (like VAT), and other admin fees.

When you take out a Volvo lease deal with LetsTalk Leasing, our team will work with you to tailor your deal to fit both your needs and budget.

What do I need to pay upfront to lease a Volvo?

In addition to your monthly payments, you must also pay the leasing company an initial payment. This payment is usually the equivalent of 3, 6, 9, or 12 months' rental upfront. The more you pay upfront, the lower your monthly payments will be.

Always check with the leasing company whether they charge any additional fees for admin, delivery, or at the end of the lease, to help you budget and avoid unexpected surprises!

How do mileage allowances work?

When you take out a Volvo lease contract, you will agree on a mileage allowance with the leasing company. You must estimate your expected annual mileage accurately to avoid incurring excess mileage charges at the end of your lease. Opt for a deal that includes a slightly higher mileage than you anticipate you'll need to avoid higher costs later.

What else can bump up the cost of leasing a Volvo?

On top of all your standard leasing charges, there are some optional extras that can increase the overall cost of your monthly payments if you decide to add them to your deal.

Most Volvos are available in various trim levels and colours, allowing you to personalise your car. Choosing a higher trim or adding premium features like a parking camera, retractable towbar, or climate control can increase the cost of your monthly payments.

At LetsTalk Leasing, we also offer an optional maintenance package for an additional cost.

What happens when my lease agreement comes to an end?

When you lease a Volvo, you don't own the vehicle, so at the end of the lease agreement, it's time to hand the car back to the leasing company.

The car will be collected and inspected for wear and tear and mileage. If the car has been damaged beyond what is considered fair wear and tear (as laid out in the BVRLA fair wear and tear guidelines), then you may be charged. You will also receive an excess mileage charge if you have exceeded the agreed mileage limit.

If the car is in good condition and you are within the mileage allowance agreed in your Volvo lease terms, there are no additional charges to pay. You simply hand the car back and start a new lease or walk away. No need to worry about depreciation or resale.

Why choose to lease a Volvo with LetsTalk Leasing?

LetsTalk Leasing is one of the UK's leading car leasing specialists. Our price match promise offers you peace of mind that you're always getting a competitive deal.

Browse our Volvo lease deals online or get in touch with our team by calling 0330 056 3331 for help customising a vehicle and lease package to suit your needs.