2020 Cadillac XT5, lease advice (good deal?)

Ask the Hackrs
, ,
22

Are you saying it’ll cost me more than $0.15 per mile if I return car with excess mileage? I expect the payment to be even lower if I adjust residual instead.

23

He’s saying that if one does a 15k lease from the start, the price is not adjusted on a per mile basis. The RV is adjusted to suit the different mileage limit.

If you go over the miles on your lease, you’re paying the per mile penalty. RV isn’t adjusted in that case.

1 Like
24

Exactly. Inceptions at 36/15k term makes more sense nearly every time. It’s almost always cheaper to adjust the rv. Adjusting his deal by adding 15 cents times 15k doesn’t make sense to me, to properly compare deals, you’d need to recalculate with an adjusted residual value. I can sit here all day and charge additional miles to deals, but you need an a to a comparison.

1 Like
25

Makes sense. Surprisingly penalty is in line with residual decrease.

26

The RV increase makes it roughly $.09 per mile, depending on MF vs $.15 per mile.

1 Like
27

With regards to the offer I have I would appreciate if anyone can advise whether I can consider accepting it as is or not? Or should I keep negotiating it? How much more? I would assume I can lower the monthly payment by only $20 at most.

Thanks

28

The discount seems decent because you don’t have the tax credit incentive listed as part of the dealer discount. Did you try to negotiate for base MF?

1 Like
29

For TX, I personally consider this good, 9% discount if you work out the MF markup, tax credit <— this alone makes a lot of cars make sense.

I’m no expert on the market, you’d have to ask @iac for that, but I’m not going to say this deal sucks, 9% discount and tax credit right now doesn’t seem terrible imo.

30

Is this new or loaner? It really depends on the vehicles. On some BMWs, yes, that’s all you’re going to get right now. On a Cadillac? I honestly have no idea what the market is like. It all depends on what OP wants and what OP wants to pay.

31

The way I see it, the tax credit is simply just an additional dealer discount. At 8.25% it is worth another $3932. So including that it looks like 19.1% pre-incentive on a loaner, I think that qualifies as pretty good. Check my math (I added the sales tax as a government fee since I couldn’t get it to work using the tax box):

1 Like
32

Loaner, I’m not familiar with Cadillac too, but you’re the TX tax expert :laughing:, thanks Ashliegh/Electric (whichever one it is)!

1 Like
33

That’s not true. The GMC Acadia Denali has all those features and can be had for the same amount. I was at $430 Inc tax with standard drive offs.

1 Like
34

Not yet, I’ll do it on Monday to see if they are willing to lower the MF but I doubt because they are giving me tax credits

35

It’s a loaner car with 3,000 miles on it. Can you get me in a BMW X3 with a better deal?

Thanks

36

With the marked up MF and tax credits, I calculate the deal as equivalent to around 16% pre-incentive discount on a loaner. No idea if there is any more room to squeeze out a bit more, but it’s definitely not a bad deal and if you sign I think you can be happy with it.

1 Like
37

What is not true? Are you saying it is not a good deal or it is not a good car? What is the standard drive offs and MSRP of the GMC Acadia you have the offer for? And mileage per year?

38

My $0.02 for what it’s worth - if you’re happy with the car and the deal, go for it. If you can get (squeeze) a couple more % off, even better.

1 Like
39

Yes that’s correct, but the tax amount is 6.25% in Texas which I assume they are giving to any customer this month regardless of buying a loaner car or new. Your calculations is what I came up with. I agree with you that the dealer seems like marking up the MF to make up for some of the the tax credits. will you consider this reasonable? And how can I push them to lower it?

Thanks

40

Have you shopped this deal around at other Cadillac dealers to see if they can beat it? The only way I can learn if a deal is good if other dealers try but aren’t willing to beat it. Maybe others can chime in here. Ultimately the MF marked up is fine if the overall lease cost is still the cheapest after shopping around.

1 Like
41

Overall, I am happy with the car and I was thinking the offer is OK comparing to other dealers willingness that I have reached out to (Volvo or Lexus) but I wanted a great or at least good deal not just OK