Last post on Dec 29, 2011 at 12:21 AM
You are in the Cadillac CTS/CTS-V
What is this discussion about?
Cadillac CTS, Car Leasing, Sedan
#320 of 379 Lease vs. Finance
Dec 01, 2008 (11:40 am)
The two dealerships I have been dealing with have previously told me that any lease deal would be in the between $700 (48 months) to $775 (36 months) with 12K mile lease. Therefore, I did some shopping for possible financing alternatives and qualified for a 5.13% loan for 60 months. Payments would be roughly $650 a month with about $8,000 down.
Today, one dealership calls and tells me that the lease payment has now dropped to $659 at 36 months, 12K miles with $1,887 due at signing. Dealership says no change in the MF (.00266) and Residual (49%) so I am not sure what changed.
Anyway, I am trying to determine which is the best route to go and was hoping someone could give me some insight. I didn't really see a leasing vs. buying forum so if this needs to be moved, please do so.
Thanks in advance.
#321 of 379 Re: Lease vs. Finance [gator5000e]
Dec 01, 2008 (3:34 pm)
First of all what are you getting for this money. A basic car, a fully loaded car, or something in between. Are all of the deals offering the same car and equipment.
Could you buy this car for cash. If so how much would it cost, how much interest would you lose, or how much would you have to pay for financing. How often would you like to trade for a new car (the current CTS will probably not change appreciably for the next four or five years.)
All of this needs to be taken into consideration before you can decide on the best deal.
Dec 03, 2008 (7:36 pm)
Thanks, bingoman. Pretty much a fully loaded CTS - Premium collection, but Rear wheel drive. I would prefer a lease. I was just curious at the sudden drop in leasing payment with all factors otherwise the same.
#323 of 379 Final Offer - Good Deal?
Dec 06, 2008 (10:18 am)
I have received this (final) offer for a 2009 CTS with Premium Collection and spare tire - bottom line is $39,447. This is a quote on a specific car - I have the VIN #. I do not know how long the car is going to be there for, so any thoughts would be appreciated. Below is what the internet manager told me when giving me the bottom line price. The source for my reference invoice price was Costco Auto.
I'm not sure what you're looking at as far as the invoice is concerned, however the invoice on this vehicle is $47,282 and we are selling it for $45,447, so we are actually below invoice.
There are only been $6000 in rebates. I previously showed you $7000 because I had coupons from GM that I could use, however those have all been used on customers who have already purchased a vehicle.
The difference between MSRP and supplier pricing is not the same on all cars.
Like I mentioned previously, the amount due at signing hasn't changed. It's still right around $1900 (I think the exact amount before was $1887). The amount due at signing line includes the available rebates.
When you calculate the lease payment on your own, it is never going to exactly equal what we calculate because of the license fees, dealer fee, acquisition fee, etc. There is always going to be a slight difference, no matter how you are doing your calculations.
The bottom line on the car without the wheels is $39,447 and this is the best I can do.
Thanks for any thoughts.
#324 of 379 Re: Final Offer - Good Deal? [gator5000e]
Dec 06, 2008 (11:38 am)
The salesman is playing the usual salesman games. He is not losing money on the deal as the invoice price is not the actual price the dealer pays. There are holdback moneys that are paid to the dealer by the factory after the sale which need to be subtracted from the invoice price to determine the true cost.
Aside from this you need to know the residual value of the car at the end of the lease. This is what the dealer thinks the car will be worth as a used car at the end of the lease. You will have to decide for yourself if this is a realistic number (you might use some source such as Kelly Bluebook for a car of the same make with the same mileage and years, but this is a guessing game as the economy and car preferences change over the years.) You also need the tax, license and other fees included in the price. Then you need a good financial calculator to determine the monthly payment or the interest rate, depending on which the salesman is quoting you.
Doing the calculations yourself is the only way to keep the salesman honest. Good luck.
#325 of 379 Re: Final Offer - Good Deal? [bingoman]
Dec 07, 2008 (6:13 pm)
Thanks, bingoman. This keeps getting more interesting. Here is the latest part of the saga. I initially found the dealership I am dealing with thru Costco's auto program. That is where i got the MSRP and invoice prices from. In telling the rep from the dealer what I thought the invoice was based on the Costco site, she replied as follows: What is this $1,000 advertising fee? Is this BS or what? sounds like it to me. I do have a copy of the invoice and it does say that.
The MSRP matches, however their “invoice” price is $1000 off because they don’t take into consideration the $1000 that GM charges us on every vehicle for their mass advertising. I encourage you to go on Costco’s site again and build this car again because I cannot save it and send it you like you were able to for some reason. On the 2nd page of the invoice I sent you yesterday, you’ll see in the bottom right hand corner where it says “remit to GMAC” – the VIN is listed there, along with the amount that we have to send to GMAC for the car (the invoice price)
I think I have the other items you mentioned figured out, and I know the dealer is making money, but if the final price is fair, then it might not be a bad deal. Although now I may consider finance over leasing.
Thanks again for all you great explanations, suggestions and pointers.
#327 of 379 Re: Final Offer - Good Deal? [gator5000e]
Dec 11, 2008 (12:03 pm)
"What is this $1,000 advertising fee? Is this BS or what? sounds like it to me. I do have a copy of the invoice and it does say that. "
yes, they are legitmate money that dealer need to pay. Each region has their advertisment budget and they pass it to all the dealership and pay for it per car. I saw this fee showed up in cars from different manufacturers. Instead of focusing on whether dealer has any more room to give (they do), it is more important to see if they are willing to give any more (after all they need to make a living as well and pay for all the building and salary). The best way is to find other dealers in your area and see if they can do any better. If no one can do better then you get the best price. And you will have to decide if the price is good enough for you.. I do think that the rebate will be gone in a month or two. GM is over prodcuing their cars now because of the economic downturn. Once they get around to reduce production, they won't offer such a hefty rebate. GM is lossing money in selling every CTS given all the discount. They can last very long in doing so..
#328 of 379 Purchased in CT on 1/15/09
Jan 18, 2009 (4:26 am)
Just brought home a fully loaded 2009 CTS direct injection, crystal red w/cashmere with a sticker price of $51,850. Sticker on identically equipped vehicles shipped after 9/30/08 is $53,025. I was lucky to find one that has been around since before the price increase. Dealer's final selling price was $47,500. This is the best deal I could find after shopping out of state dealers who sell at deep discounts, as well as another dealer here in CT. After the $1500 model rebate, $2000 GM Loyalty Discount and $4000 lease incentive, the final price I paid was $40,000. I still cannot believe I got this car at that price. Perfect time to buy for anyone ready to pull the trigger.
Jan 20, 2009 (10:54 am)
Getting CTS 09 AWD DI with luxury package,sunroof and audio package. MSRP 44600 they are giving me 2800 off as a supplier price and 2500 in rebate so total 5300 off.Is this a good deal or should I wait for Feb 3rd for possible better deal. Right now I dont quailfy for their lease or GM loyal rebates.