Last post on Dec 02, 2013 at 12:39 PM
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Cadillac CTS, Cadillac CTS-V, Car Leasing, Sedan
#333 of 976 Re: CTS lease [mixen]
Jun 23, 2009 (10:49 am)
No offense mixen but putting money down on a lease is a risk. If your car is stolen or totalled, then you lose all that money. Gap insurance does not cover you. The insurance company writes the check to the owner of the car (i.e. the leasing company), not you, so any money that you put down is lost. That's why Edmunds recommends that you don't put money down on a lease.
Leasing for 60 months is also a risk considering that the basic warranty on the CTS is only 4 years/50K miles. That means that for the last year of your lease (or anytime after you hit 50K miles) you'll be responsible for paying anything that breaks that's not covered by the drivetrain warranty which is 5 years/100K miles.
#334 of 976 Re: CTS lease [mixen]
Jun 26, 2009 (8:17 am)
That's a long lease. I would have thought that with 0% you could have done as well purchasing?
#335 of 976 Re: CTS lease [sam_k]
Jul 01, 2009 (12:06 am)
Sam....please clear up something for me. You say "If your leased car is stolen... the insurance company writes the check to the owner of the car (i.e. the leasing company), not you."
Let's say the value of the car at the time of the loss is $30,000. Let's also say that the "balance" left on the lease is $35,000.
I presume the insurance company pays whoever the "owner" is the value of the car, and that they are not concerned with any outstanding financing balances, either conventional or lease. Correct?
So if the lessor (leasing company) gets $30,000 from the insurance company, but is owed $35,000, what do they do about the $5,000 shortfall? Go after the lessee? Using this example, the person leasing the car has come out ahead by not putting any money into a down payment, assuming the leasing company does not come after them.
Conversely, I can see where putting a big chunk of money down might put the balance below the value, and in that case the lessor comes out ahead. I'm presuming the leasing company will not turn around and give the lessee any funds they may have received from the insurance company which exceed the balance due. Correct?
How is any disparity between the value and the balance due handled?
#336 of 976 Re: CTS lease [billmv]
Jul 01, 2009 (2:53 am)
billmv, there's a very simple answer to your first question. When you lease, the lease should include something called "gap insurance". As the name implies it covers the difference between what your insurance company will pay the finance company and what's owed to them. In your example, if the leasing company is owed $35K and the insurance company will only pay $30K, gap insurance will cover the $5K difference. Here's a link to an edmunds.com article that explains gap insurance.
I've never heard of any leases that don't include gap insurance. You shouldn't have to pay extra for it but you should just confirm that it's included in the cost of the lease.
And to answer your second question, you are correct. If you have equity built in the car from making lease payments, the leasing company will not turn around and pay the lessee any funds they may have received from the insurance company which exceeds the balance due.
And for those who don't believe what I said in my previous post that any money you put down on a lease is lost if the car is stolen or totaled, edmunds.com mentions it in the following article on how to spot a good lease.
#337 of 976 New lease offers
Aug 12, 2009 (7:29 am)
GM announced they will resume offering leases on CTS and SRX through an affiliation with U.S. Bank. Anyone have any details on these lease offers?
#338 of 976 Re: New lease offers [rbirns1]
Aug 18, 2009 (2:18 am)
Greetings rbirns1. What you read is correct, General Motors did finally reintroduce leasing on a select number of models. It actually is running two different special lease programs this month, one through its traditional captive finance company GMAC in most regions and one through US Bank in a select number of states.
GMAC's current base lease rate for a 36 to 39 month lease of a 2009 Cadillac CTS is a very attractive 0.40%. Its special lease rate through US Bank is slightly higher at 0.96%. If you tell me what state you are in, I will gladly tell you which program is available in your area.
When negotiating your lease on the CTS that you are interested in, make sure to take advantage of the $3,000 lease cash that is available on deals through GMAC ($2,750 on US Bank leases).
Prices Paid: Buying & Leasing Experiences Forum
#339 of 976 Re: New lease offers [Car_man]
Aug 18, 2009 (5:48 am)
I have interest in this. I am in GA.
What is the MF and residual in GA? and available lease cash?
#340 of 976 Re: New lease offers [Car_man]
Aug 18, 2009 (7:58 am)
This sounds like a great offer with the $3K offering.
I am in MA, what are new August lease quotes and other incentives?
#341 of 976 Re: New lease offers [Car_man]
Aug 18, 2009 (8:00 am)
I'm in NY. What about residuals? Critical for figuring out the bottom line. Thanks in advance.
#342 of 976 Re: New lease offers [smithsonga]
Aug 20, 2009 (1:51 am)
Hi smithsonga. The GMAC lease program is available in Georgia. This program features a special lease rate of 0.4% for 36 or 39 months. This is a lease rate, not a money factor. To convert it to a money factor you just have to divide it by 2400. So, its equivalent to a money factor of around 0.00016.
On top of this special interest rate of practically zero percent, General Motors is providing a $3,000 cash incentive on leases of this car through GMAC.
Prices Paid: Buying & Leasing Experiences Forum