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Cadillac SRX Lease Questions

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  • brona98brona98 Posts: 1
    Hi, I've been recently shopping around for a new vehicle and I'm interested in a 2010 Cadillac SRX AWD Luxury Collection with navigation option.

    I am hoping someone can familiarize me with current GM promotions for the SRX in terms of leasing. I am in NYC.

    The invoice price on the vehicle is 40,643. MSRP is 43125.00

    The following is a copy of the offer I was given by the dealership i went to, and I feel like I am getting ripped off:

    MSRP: 43125.00
    Total Mileage Limit: 39,000
    Residual %: 49.00%
    Lease End Value: 21.131.25
    Rebate: 1950.00
    Term: 39
    APR: 2.000%
    Initial Cap Cost: 43,125.00
    Total Add Cap Costs: 895.00
    Total Sales Tax: 2,431.24
    Adjusted Cap Cost: 44,501.24
    Base Monthly Rental: 654.42
    Security Deposit: 675.00
    Total Annual Fees: 10.00
    Total Initial Fees: 87.50
    Amount Due At Start: 1,426.92
    Mthly/Ann Mile Limit: 1,000
    Total Monthly Payment: 654.42

    I also have $1000.00 of available earnings off a GM card and currently in a GM Lease that will expire at the end of this month, so I am expecting some kind of loyalty.

    I feel as if the capitalized cost should be the invoice price at least.

    Any input would be greatly appreciated. Thank you.
  • delta737hdelta737h Posts: 603
    edited July 2010
    brona98,

    Dealers try to make as much money as possible. You're deal proves that you're no exception. Unless the demand for an SRX in NYC is such that they're able to get MSRP, you're paying MSRP! The sell price in your deal is, indeed, the MSRP of 43,125.00. What they're calling the initial cap cost is the sell price or, what is commonly called the "Agreed Upon Value", in lease agreements. You need to check Edmunds invoice pricing for this vehicle. They'll also show available incentives which should be deducted from the invoice. Also, check overstock at zag.com to determine the lowest selling prices in your area. What is the 1950 rebate? Is it a true rebate or, is it a dealer discount?

    Sales tax is a huge factor; especially in NY. I'm not able to confirm your taxes because you didn't provide your sales tax rate and didn't itemize some of the fees and so, I'm not able to assess what's taxable and what isn't taxable. Also, I have no clue what "total add cap costs" of 895 means. These should be itemized. I suspect that this figure includes GMAC's 795 acquisition fee. It's possible, however, that the dealer inflated this fee by $100. You need an itemization as well as an itemization of all upfront lease charges ($1,426.92).

    The first thing you should do is take some time to understand how leasing works. Learn the terminology, basic calculations, etc. For whatever it's worth, let me share some guidelines I use when leasing...

    1st Rule Do your homework. Research selling price by checking invoice pricing and incentives at Edmunds. Also, check overstock at zag.com for competitive sell prices in your area. Research the money factor and be sure you're getting the "buy" rate if your credit is good enough to qualify.

    2nd Rule Create a one-page lease proposal. It must be on your letterhead and be a very professional looking document. All calculations must be spot on and contain no errors of any kind. Include all pertinent data such as a description of the vehicle, MSRP, sell price, amounts capitalized (e.g., taxes, acq. fee, etc), cap reductions (e.g., trade, cash down, etc), money factor, residual factor, residual value, term, taxable payment, lease payment, amounts due up front (itemized), contract provisions (gap insurance, excess mileage charge, applicable disposition/purchase option fees). All dollar amounts are calculated, not by the dealer, but by you using a program that you created.

    A professional looking one-page lease proposal speaks volumes about you... it sends the message that you know and understand leasing. That quickly serves notice to the dealer, and so; they're not as inclined to play games.

    3rd Rule Fax/email the proposal to the dealer and negotiate via phone/email from the comfort of your home/office with your laptop excel spreadsheet lease program fired up and ready to rumble! The only thing you're likely to negotiate is the sell price and that only requires a few keystrokes on your laptop. And, bing-bang-boom you're done! This suggests that the biggest advantage of a lease proposal is that it saves time, money, and aggravation.

    If you like, email me at

    diffeqzoominternet.net

    and I'll send you a few sample lease proposals.

    The key is that you must control the deal. Never allow a dealer to control the deal by allowing them to "run the numbers". Trying to figure out the dealer's numbers is often a pointless exercise and, frankly, a waste of time unless, of course, you have a copy of their LEASE WORKSHEET. This is a computer generated document that eliminates confusion and guess work and will tell you everything you need to know and then some. The beauty of this document is that it always tells the truth. Allowing the dealer to control will only end up costing you more money in most instances.

    If you agree to allow the dealer to "run the numbers", ALWAYS ask them for their LEASE WORKSHEET. If they refuse to give you a copy, RUN; DON'T WALK! However, there is absolutely no reason for the dealer to refuse to give you a copy of their lease worksheet.

    A note on GMAC leases...

    GMAC use interest rates; not money factors which is okay. All calculations in your deal have been done correctly and in accordance with GMAC criteria EXCEPT; I haven't been able to confirm the taxes as noted above. One problem with GMAC Smart Leases is this...

    They continue their long-standing practice of cheating lease customers by discounting the residual one month nearer to the present (i.e., R / (1 + i)) where R is the residual value and i is the montlhy interest rate. This causes the monthly payment to inflate by a few dollars. This grossly flawed and totally irrational practice flies in the face of reason and is mathemtically, financially, and actuarially unsound.

    Inappropriate or skewed computations only serve to justify the rationale for incorporating standard computational methods in the Federal Reserve Board’s Regulation M (Consumer Retail Leases) paralleling those of its Regulation Z (Truth-in-Lending) cousin.

    Yup, that's all we need is more government regulation which translates to more bureaucracy; more government drones; more corruption; and MORE WASTE!

    I hope that this has been more helpful than confusing. Questions? Please let me know.

    John
  • madeindetroitmadeindetroit Posts: 1
    edited July 2010
    Car_man - Do you know what the current residual and lease rates are for a 2010 SRX Luxury AWD, with 15000 miles for 36 months are as of today?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Here you go, madeindetroit.

    GMAC's current base lease rate and residual value for a 36 month lease of a 2010 Cadillac SRX Luxury AWD with 15,000 miles per year are 2.0% and 47%, respectively.

    When negotiating your deal on this truck, make sure to take advantage of the $1,950 cash incentive that is currently available on leases of it through GMAC.

    Car_man
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  • suzay22suzay22 Posts: 11
    Any rates on the 2011 39/39K or 36/12 AWD SRX yet?
  • Hi suzay22. General Motors introduced a special lease rate of 3.35% for leases through GMAC and 1.56% for leases through US Bank on the 2011 Cadillac SRX for 36 and 39 month terms through September 7th.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • hi I am just entering into the market to lease a new 2010 or 2011 Cadillac SRX
    Lets just say the sticker price is 44k - with $1500 down , 15k miles ,
    and 36 or 39 month lease.

    I am wondering ballpark about what my monthly payment should be?
    Any help would be appreciated. Thank You, Chris
  • Heyy...can someone please advise me on the following quote I received from a long island dealer...I feel it can be better.

    2011 SRX AWD Luxury Package + Navigation
    27 month lease
    10K
    $3400 - according to them it is just the taxes(8.875% for NY), first payment, inception fees, lic, reg, etc...i but that sounds pretty unrealistic
    $499/month

    Thanks so much!
    Bklynt525
  • Hi,

    I just leased a SRX Luxury model 2011 in California September 10, 2010! GMAC is offering 24months @ 459.00 plus tax $2995 down after all taxes it came to $510.00 depending which state your in. I was lucky to find a GMAC certificate that was valid for $1500 that they sent to me because I was an old Cadillac customer in 2004 keep looking for Certificate offers maybe google GMAC for them?

    This deal is great for 24 months! Hope this helps.

    Alloy
  • Thanks Car_man...........can you tell me what the residual value is for 36 and 39 months? Thanks.
  • Sorry.....I didn't give enough info. Looking for the residuals for 36/12K and 39/12K. And now I see your reply was only through Sept. 7th. What are the rates now also for those terms? Thanks! Cadillac SRX AWD Luxury.
  • Hi Chris. You never described the exact trim level of the SRX that you are interested in, so for now I will assume that you want a Luxury AWD model. Let me know if you want something different.

    Let's work up a payment on this truck and see what we come up with. For now I will assume that you will be able to negotiate a $2,000 dealer discount.

    According to my calculations, if you were to lease a 2011 Cadillac SRX Luxury AWD that has an MSRP of $44,000 and a selling price of $42,000 through Ally right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $563.

    They payment for an otherwise identical 39 month lease would be around $545.

    Car_man
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  • Hi Bklynt525. The easiest way to evaluate this deal is to look at this vehicle's MSRP and selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without these numbers, it is much more difficult to tell how large a dealer discount you are being given. Let us know what they are and I'm sure that either myself or another knowledgeable community member will gladly let you know what they think.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • I'd be happy to help you out, suzay22. This vehicle's lease program varies by trim level and you never mentioned the specific one that you want. For now I will assume that you're interested in a 2011 Cadillac SRX Luxury AWD. Let me know if you want something different.

    GMAC's current base lease rate and residual value for a 36 month lease of a '11 Cadillac SRX Luxury AWD with 15,000 miles per year are 1.6% and 53%, respectively.

    The numbers for an otherwise identical 39 month lease are 1.6% and 51%.

    Car_man
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  • No problem, suzay22. AH HA, I see that I guessed correctly on the trim level, just not the mileage allowance.

    I believe that Ally's 12,000 mile per year residual values are 2% higher than its 15,000 mile per year resids.

    Car_man
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  • CARMAN,

    According to the dealer (2nd visit) the cost of the car is 41,445. They are not willing to go any lower than what quoted earlier.

    2011 SRX AWD Luxury Package + Navigation
    27 month lease
    10K
    $3400 - according to them it is just the taxes(8.875% for NY), first payment, security deposit, inception fees, lic, reg, etc...
    $499/month
  • I noticed on a posting that you quoted a 1.6% on a 15K/36 month Lease on a SRX. When I contacted 2 different dealerships, they quote me 2.6%. Are they marking it up for their profit? The 1 point does impact the monthly payment. If so, how much can I insist they give me the 1.6% rate?

    I am looking at a 2011 FWD SRX Luxury model. The dealerships did quote me the 53% residual as your posting did.

    Thanks!
  • Does anyone know the October Residual and money factor for a 2011 SRX Luxury AWD with Nav?

    I am looking for a 39month lease with 10k miles a year.
  • Thanks for the additional information, bklynt525. The cost of the vehicle is a great starting point, but we need something to compare it to...most likely its MSRP. Knowing both of these numbers will show us how large a dealer discount you are being given, and in turn whether there is any room left to negotiate.

    Car_man
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  • Hi msjhsap. The 1.6% number is definitely right. It certainly does sound as though there's some mark-up going on at your dealer. If I was in the market for an SRX, I personally would insist that the dealer use the 1.6% rate to calculate my payment.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
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