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I am trying to figure out how to calculate when I will no longer be upside down on a purchase? If I finance $25K or so for 48 months, will I be right side up after 2 years, if I figure a interest rate of roughly 5.5%?
This is a tough choice as I really like the CTS but the other "luxury" brands are much more flexible with lease deals. So I don't want to screw myself here, but am not very good at figuring these things out. :confuse:
Thanks for any thoughts!!
Hi all. I have what appears to be a very nice deal on a 2009 CTS pretty close to fully loaded for about $37,429, not including taxes and such. My question is the lease deals are not very good now and I have not financed in a VERY long time. I hate to buy the car for cash as I probably won't keep it more than 3 years and thus that sounds like throwing money away.
I am trying to figure out how to calculate when I will no longer be upside down on a purchase? If I finance $25K or so for 48 months, will I be right side up after 2 years, if I figure a interest rate of roughly 5.5%?
This is a tough choice as I really like the CTS but the other "luxury" brands are much more flexible with lease deals. So I don't want to screw myself here, but am not very good at figuring these things out.
Thanks for any thoughts!!
You can use the dealership bank lease, arrange for your own bank lease or using a site like leasecompare.com which shop lease for you. Buying and leasing are very similar in cost. We pay for the depreciation and the interest cost of using the car. The main difference is that at the end of the lease, the residual is set. In economic situation like ours now, manufacturer are lossing money big time because they set the residual too high a few years back. Basically manufacturer are assuming the risk that they residual may not work out the way they predict it.
They would not drop any lower than that at all. I thought with the times and since I was the only one in there they would. Not so much. I happy with the deal. Good rate over 60 months and the car is AMAZING and Gorgeous. This is my first Domestic car purchase in my life. I will tell all of my import friends to look into this car from this point on. It is really that nice. The drive and steering are amazing and the tech is just as grand. Good luck everyone
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.
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.
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.
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.
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.
http://www.cadillacforums.com/forums/cadillac-cts-forum-2008-beyond/119196-have-- we-solved-steering-vibration-freeway-37.html
48 page thread discussing a mysterious shimmy problem. Apparently Cadillac knows about the issue and has issued a tech bulletin but has not solved the problem yet. See Post # 369 on page 37 of the thread for the bulletin.
Has anyone who has recently purchased a CTS run into this problem?
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..
bought my 09 CTS non DI RWD fully loaded MSRP 49,500 for just over $42K last Sept during the employees pricing sale....put another 5K down and financed the rest.....
1) If I go to kbb.com and price the car with options, is the Invoice amount they show a legitimate Invoice amount (and equal to what the dealer would be invoiced by GM)?
2) What is a reasonable amount for X in: Invoice + $X? X=$500? X=$700? I think Invoice +$X plus all applicable incentives (for example, March's incentives equal $2,500, so my price would be Invoice + $X - $2,500.
I have no trade-in, not coming off a lease; this is a straight purchase.
I live in the Northeast. Don't know if that has any impact on X.
I usually go in a few hundred over invoice.....some dealers are flexible with the advertising fee...some are not......but you logic is sound on your approach....
The dealer is asking for a $2,000 deposit.
What do I need to do to ensure all is good? I presume I'll get a receipt of the deposit. I'm obviously taking a chance that they're still be some decent incentives come April when the car is delivered, but is there anything I need to do to ensure they make good on their promise to sell at Invoice?
make sure they can change the specs on the car too...if the order from the dealer has already been accepted...believe its code 3000, its too late to change specs, if the order is just sitting in the dealers order que awaiting an allocation, then it can still be changed.....order allocations to dealers are released weekly, however the dealer should now how many he can order in any one given month...
dont leave with just a receipt for your deposit...
also didnt want the sky high maintenance prices Audi and Lexus charges either....
Valley Cadillac
3100 Winton Rd South
Rochester, NY 14623
http://www.valleycadillachummer.com/
I live in NYC and contacted a number of dealers via the internet. One of the larger dealers in NJ just across the river did not respond to emails, and when I called him, he sounded like the stereo-typical New Jersey salesman. He offered to sell a car to me at invoice.
After contacting Cadillac (faq@cadillac.com) to ask where I might find the CTS with the specs that I wanted, they sent me a list that included Valley Cadillac. Instead of firing off an email to them, I called and was put through to a salesperson. I don't know if she is the only salesperson on their team, but she was good. Ask for her and tell her the guy from NYC sent you.
In fact, the price was good enough that I still saved $$ even after accounting for the cost of my one-way flight from NYC to Rochester to pick up the car. The drive back to NYC (5 hours or so) was a perfect way to break in the CTS!
In the end, it was the $2,500 cash discount plus a $1,000 private offer that GM made to me.
Here's the rub. The lease rate right now for GM Smart lease is 24%. I laughed at them as I walked out. I called a dealer in another town and he too came back with the 24% interest rate. I said I don't know how you could tell a customer that with a straight face. He said yeah, right. He's pretty upset too.
If this is what GM is using my tax money for then the sooner they go out of business and turn this over to someone wanting to do business the faster their recovery will be.
I've always leased my cars for no more than 39 months. So, is 48 months too long to lease a car (i.e. is it worth it)? Since I've never financed a car for purchase before, is 72 months too long of a time period to finance?
HELP!
Personally, I would buy the car so I could get rid of it if I decided I hated it or if my circumstances changed.
For buying at 0%, I don't think it matters how many months you get the loan for. It will average out to the same overall cost no matter what, so you may as well go for 72 moths.
Normally we have to wait until the next month to see what the rebates will be. Currently there are none on the 2010. If they don't have specials in Oct, Cadillac usually them near the end of the year.
Just be sure to come back here and tell us about your shopping experience!
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