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2013 and earlier Cadillac CTS Lease Questions

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  • May CTS residuals are 24m=69 , 30m=64 , 36m=59 , 48m=50. Money Factor is 6.1% or .002984.

    I dont have the formula to use a percentage but take the percentage and divide it by 2044 to get the money factor.
  • gforce11gforce11 Posts: 225
    div by 2400 to get the %
    multiply by 2400 to get the MF
  • kyfdxkyfdx Posts: 31,211
    Other way around, I think...

    Multiply the MF by 2400 to get the %
    Divide the % by 2400 to get the MF

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • gforce11gforce11 Posts: 225
    ROFL. You're right kyfdx. I think I was on crack that day. LOL
  • pokeyraipokeyrai Posts: 3
    Well, after a quick test drive, I'm in love with the CTS. I am frustrated though with the lease dollar amount the dealer gave me today vs the calculations I've done at home.

    I am working under the assumption that the residual for a 24 month/15k mile lease is 69% with an interest rate of 6.1% (MF 0.00254).

    The MSRP of the car is $50,285
    My GMS (thank you Mom and Dad) price is $44,259.23

    My tax rate is 5.5%

    The dealer is quoting me $700 per month with tax and my calculations have me at $631.90. I could be missing a fee or two, but not by that much.

    Am I screwed up?

    Any help would be appreciated
  • gregctsgregcts Posts: 1
    Can you get a CTS lease with zero down?
  • gforce11gforce11 Posts: 225
    631.90 would be if you pay all of your inception fees upfront...around $1550. I would advice you to do so since your interest rate is rather high.
    If you do $0 at signing, your lease payment will be $700.

    ZERO down is not the same thing as ZERO drive-off.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi gregcts. One can lease basically any vehicle that they want without making any sort of down payment aka capitalized cost reduction. Having said this, even with a zero down lease consumers still have to pay their vehicle's first month's payment, security deposit, and GMAC's $595 acquisition fee at signing. Most of these fees can be rolled into the vehicle's capitalized cost rather than paid at signing, making them part of the monthly payment if the lessee wants.

    Car_man
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  • pokeyraipokeyrai Posts: 3
    Here is what I finally was able to get from the dealer:

    Zero cap cost dollars down (rolled the $595 acquisition fee in)
    Paid the usual upfronts of 1st month and TT&L

    With tax (5.5%), I am paing $665 on a 24mth/15K mile lease
    MSRP $50,285

    Love my new CTS!!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on getting your new CTS, pokeyrai. Thanks for taking the time to share the details of your lease with everyone. Make sure to stop by the Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience as well. Enjoy your new ride :shades: !

    Car_man
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  • pokeyraipokeyrai Posts: 3
    Thanks, will do.
  • nijhsccnijhscc Posts: 2
    I wonder if you could give me a quick primer on the math, terminology - I am tryinig to make a decision between leasing or purchasing.
    1. How is Residual Value calculated ? what does it include ?
    2. What is MF ? lease rate ?
    3. Tax rate ?

    I am considering an option from the following scenarios, from the information the dealer has given me :

    Facts :
    2009 CTS : MSRP 51850; GMS 45878

    Residual value = 32596
    Lease 24 mths/12K per yr : $ 798/mth; Onetime payment of $ 18400

    Purchase : 4.9% for 36 mths ( $ 1439/mth)

    Basically, I am trying to determine the net cost to me if I Lease first, and then Buy this car, if I decide to keep it, VS buying it up front and taking a chance that it is the one I want to keep for a longer period of time.

    Your assistance and advice is greatly appreciated.
  • srynsryn Posts: 27
    I'll defer to Car man and GForce, but that residual seems awfully low for a 24 month/ 12K per year lease. Based on the MSRP you list (no pun intended), the residual value is 63%. If I understand GForce's immediately preceding post, it seems the residual should be more in the neighborhood of 71%.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No problem, pokeyrai.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nijhscc. It sounds like you are new to leasing. You can find out everything that you need to know about it by checking out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In answer to your specific questions, vehicles' residual values are based upon a percentage of their full MSRPs plus the MSRPs of any options that can be residualized. GMAC's current residual value for a 24 month lease of a 2008 Cadillac CTS with 12,000 miles per year is a whopping 71%.

    Banks also set vehicles' lease rates. GMAC's current base lease rate for a 24 month lease of an '08 CTS is an unattractive 6.1%.

    Each state calculates sales tax on leased vehicles differently.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • nijhsccnijhscc Posts: 2
    Thanks - yes, I am new to leasing. I have used the Edmunds calculators, but using the CTS 2009 MSRP/Residuals etc as I had noted in my email. The Calculators do not provide an analysis/answer, if I want to FIRST lease the CTS for 24 or 36 mths, and then Buy it after this period. What I would like to calculate is the Difference between BUY NOW, Lease first/then buy. I know that in the long run, it is always better to BUY (financially speaking). Any advice ??

    thanks,
  • topgun7topgun7 Posts: 409
    "NOW, Lease first/then buy. I know that in the long run, it is always better to BUY (financially speaking). Any advice ?? "

    No, it is not true that it is always better to buy. There is 2 cost component of owning a car, the depreciation and the finance cost. Even if you pay cash out of your pocket, you still run a finance cost which is equal to the money that you can make with the cash. Comparing leasing and owning boil down to what finance rate you can get with leasing vs buying. And what residual a manufacturer set for a car.

    If a manufacturer is running special for leasing a car (i.e. lease cash, lower money factor e.g. right now you have cars that has money factor equal to 3+% interest rate..) or set residual artificial high than it is better to lease a car. If it is the other way around, then it is better to buy a car.
  • Car-man (or anyone else), do you know what the September residuals and base lease rates are for 12k 24 month or 36 months leases on the CTS?

    Thanks in advance...
  • Hi 1stacura. Unfortunately, it appears as though General Motors is not leasing vehicles this month. If you want to lease a CTS, you will have to do so through an independent bank. This month GM is offering Employee Pricing that can be combined with 0.9% to 5.9% financing and $2,000 cash. GM is providing an additional $2,000 for consumers who are currently leasing any vehicle.

    Car_man
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  • Hi, I am currently leasing a 06 CTS which is up in Dec. I am over my miles by 15000, which equates to $3000. My dealer has offered me a 2009 CTS with auto trans and dark grey color for $3450 out of pocket and $399 a month 39 m lease with 12K miles. Also asorbing my over miles on the 06. Is this a good deal or should I wait until December for a better deal?
  • Good morning, all. I am in the market for a 2009 CTS and was hoping the knowledgeable people on this site could tell me if I am getting a decent deal or not. This is what I have been quoted by the internet manager:

    The MSRP of the vehicle you priced is $45,200. The others in the inventory were more expensive some by a few hundred, others a few thousand.

    I am selling it to you for $42,985. When it comes to leasing, there are no
    rebates available. A 36 month lease with 12k miles a year with about $1,600
    due at signing will give you payments around $715 plus tax a month. On a
    purchase with excellent credit, $2,000 rebate and $1,600 down, your payment
    will run about $845 a month. (not sure I understand why the monthly went up here)

    To move to the far end of the scale with all the bells and whistles, the CTS
    with an MSRP of $48,705 can be sold to you for $46,528 through the Internet
    Department. A 36 month/12k mile a year lease with about $1,675 down gives
    you payments of $775 plus tax a month.


    After I told him what I wanted to pay a month (not really what I want but I wanted to see where he would go with the offer - I realize I will probably be paying over $600/mo at a minimum), this is what he wrote me:

    My original quote to you was about $900 over invoice. I went down to about $500 over invoice (normally as low as I can go) . We were at about $763 including tax a month and with a bit more discounting, we are at about $740 a month including tax. To get below $600 a month means instead of about $1,600 down, you would need to come up with about $6,500 down. There is just not that kind of markup on a car like this. If you went down to 10k miles a year, you would move closer to the $700 mark. The only real choice would have to be find a less expensive vehicle or put more money down.

    I am really sorry for the long post, but any thoughts on this would really be appreciated. I have read through most of this thread, but it does not appear as if some of the older post really apply presently.

    Anyway, thanks again for any thoughts.
  • 10sfan10sfan Posts: 136
    With the problem facing GM, wait a month or so, they will be forced to provide major cash back to move inventory. I do not like putting any cash up front as in the event of a total loss, your insurance carrier will not reimburse you for that part of your loss.
    Their lots are filled to capacity. The reisdual value for leasing their vehicles is low and without their own financing arm, your at the mercy of the local banks which are tight with their lending on especially on GM, Ford and Chrysler vehicles.
  • Hi gator5000e. If I was going to lease a new entry luxury vehicle right now, it definitely would not be a Cadillac CTS. General Motors has cut way back on its lease support over the past several months. It really no longer makes sense to lease a GM product. A number of other brands, including BMW, Mercedes, Infiniti, Lexus, and others have much more attractive lease programs on similarly priced cars.

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  • Thank you for the replys. Good advice so I have decided to wait for a while.
    Besides this site and the individual manufacturer sites, is there a good site to see current lease offers?

    Thanks again.
  • I just got an amazing deal on the CTS, and am very happy.

    It was a 36 month lease that took into account, employee pricing, a rebate, and an additional $4,000 reduction since I had a lease that was to expire within the next seveal months. MSRP around 38, 36 month lease for 412 plus tax with $1,000 total out of pocket. I'm very happy . . . so far
  • jacalyker, congrats on your lease.May I ask what state your in? And did you have any options/packages in that deal?
  • You're very welcome, gator5000e. The two places that you mentioned, here and manufacturers' sites are probably the best places for information on advertised leases.

    Car_man
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  • Has anyone ever extended a lease for a yr? Is this even possible to do for the CTS?
    Thanks
  • I had asked GMAC about this in the past, and I was told you could only extend lease if you have another Gm product on order and you are waiting for delivery. You might want to call GMAC to see if this policy has changed. I don't see any advantage to extending your lease for a full year as you will be paying more than if you had leased the car for the longer period to begin with. You might consider buying a new one as they are literally giving these cars away right now. My lease was recently up and I went to the dealer just to turn it in. I had no intention to buy. But, after realizing what I could buy an '09 for, I simply couldn't say no.
  • Your deal sounds AMAZING. How many miles per year? May I please have the email address of your salesperson? What state are you in?
This discussion has been closed.