No, you’re correct now. The original post was edited. It had a lower selling price listed previously which is where my number came from.
The incentives need to be pulled out of the selling price and added to the taxed incentives. Which if I read your post correctly, that means 4500, and $479/mth, which takes the purchase price at 53602 and a 9.6% discount, you need at least another 5% on this.
You can get your monthly on a new one.
0 tax in NH is making this offer look better than it actually is. In NY for example this is $500+ including taxes. I have no idea why anyone would pay that much for this car. There are much better values out there.
Like didn’t someone just pay $350 including tax in MA which makes it $330-ish without for a Highlander hybrid?
Before someone jumps in with “it’s not a luxury car” well neither is the XT5.
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I have not seen any XT5 deals that show 10%+ pre-incentive. Best I have seen here is 11-14% post incentive and includes incentives that I don’t qualify for. (If I had had the foresight to see the $1500 Costco incentive I would spent the $60 to get a membership before Jan 1th 2021.)
I’m at 17.2% post-incentive on the demo now. I think I want to get to 19.5% post-incentive on the demo to be at an excellent deal.(squeezing another $1400 out of the dealer)
To me, in a non-tax state, incentive dollars are not fungible and are kind of meaningless on their own- the only amount that matters to a lease is the post incentive sale price -the valuation of the vehicle minus any incentives.
Valuing the vehicle higher and then using the incentives as a down payment will not change the monthly lease cost rather than putting all the incentives into reducing the sale price. In fact, I would think States would want to tax the pre-incentive sale price to collect more tax.
You’re totally missing the point here. Separating the incentives out isn’t just for calculating taxes, it’s for normalizing the sales price for comparison across markets/periods and for distilling down to the knobs that you can actually negotiate on (the pre-incentive discount) and the ones you can’t (the incentives).
No one is saying anything about valuing the vehicle higher and then applying the incentives as a down payment, etc.
Hi max_g,
Can you point me to a deal with approximately $60K MSRP for a Highlander hybrid with leather- heated/ventilated seats, full tech package that leases out at less than $459 pretax?
I’m not seeing those kinds of deals here…
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I’ll be around $500 all in this month
First off, MSRP means nothing. It provides absolutely no indication of a car’s worth. GM definitely phoned it in with the XT5 and a barely-better-than-Chevy build quality. If you want to believe you’re leasing a car worth $60k for $460, think again.
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That Highlander deal you linked, it’s pretty close to where you are now after backing out NY TTL. And it’s a superior vehicle despite the inferior vehicle having the higher MSRP (this just reinforces the first point). And it will save you money on gas.
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Not anyone’s job here to find you cars with a laundry list of features you want, that’s on you. But just curious, what important feature was missing on that Highlander?
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The Highlander was just an example to illustrate the broader point; look around the forum and find value for your money. Don’t be fooled by badges and MSRP.
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If MSRP meant nothing, then it would not be the first variable in the leasehackr calculator. 
The residual is the market definition of the value of the vehicle after its used and is calculated as a function of the MSRP.
No one coming to this forum is paying MSRP.
Different people view different things as important to their vehicle choices. What is important to you may be weighed quite differently by me and my wife.
I’m looking to be in a highly comfortable (xt5 sized) SUV that has reasonable performance. My current version is 2017 XT5 $57K MSRP finishing up the $399/mo @35 $399 DAS. I will likely work this 2021 XT5 59K MSRP deal down to about $420/mo@35 $420 DAS.
As to meting your curiosity- the Highlander is a bit larger than the XT5 and my wife is not interested in driving nor parking a larger SUV. Neither of us find the front nor rear seats in Toyotas comfortable for the occasional all day trips. Also, my late brother retired from GM - it is a source of family pride when I visit relatives arriving in my Cadillac.
I generally don’t tend to get fooled, ever.
You’ve totally missed the point.
Here is an example of a Lexus RX 350 deal $49K MSRP same 36/10K residual is 58 instead of 57.25
The residual means that the XT5 holds a fraction of a percent less value as a 350 RX when looking at 36/10K.
I would agree with you that the MSRP of a vehicle that is in the 45-50% residual range for a 36/10 deal is somewhat meaningless to directly compare to a vehicle in the 57-58% residual range. But we are discussing vehicles with comparable residual ranges. Your disgust with Cadillac is not backed up by the residual numbers that are set by bankers.
I have made absolutely 0 comments regarding cadillacs other than trying to give you assistance in how to properly evaluate and break down your deal.
You’ll also find that residual values are very often inflated as a means of subvening leases (bmw, for example, loves to do this).
My apologies mllcb42 - my comment was in relation to max_g comments and I inadvertently linked to yours instead. I regret my error. You have been helpful and I appreciate it. The reported GM deals tend to be post incentive because GM dealers resist letting customers know all the details and hidden incentives. I have asked will hopefully see them tomorrow.
“GM definitely phoned it in with the XT5 and a barely-better-than-Chevy build quality.”
I wouldn’t look at msrp or rv as a proper metric for the value of the vehicle personally. You might consider actual used values (although branding often trumps reality for a lot of people) rather than potentially inflated residual values. RV is a knob that the banks turn, just like incentives and reduced mfs, to push consumers towards or away from leases. For many brands there is a very loose correlation between the set residual value and the actual value of the vehicle at lease end.
Why is everyone trying to talk this poor buyer out of a caddy? They want a caddy. End of story. They just want the best deal on it.
We say it here time and again. You can shop the deal or shop the car. This falls into the latter, and there is nothing wrong with that.
Personally, OP, I’d say $420 all in for this car would look pretty good since Cadillac is rarely a bargain lease.
Thanks for your experience. I’ve found the Cadillacs I’ve leased come out close on RV- sometimes they are worth more and create value into the next deal and some time a bit less and provide no value into the next lease.
Let’s be fair… “Everyone trying to talk him out of it” consists of @max_g saying to compare the value proposition rather.than get caught up on the MSRP and everyone else saying to separate out the incentives and properly compare prices against other xt5 deals.
True. I think I got a bit confused with the highlander posts. Lol.
Thanks for all the opinions and advice. I’m not fully locked on this vehicle yet. My 57K MSRP 2017 XT5 came with mag ride suspension and 20" wheels and had basically everything but adaptive cruise. This 59K MSRP 2021 XT5 has adaptive cruise, surround vision and HUD but lacks the different choice suspension modes and 20" wheels. I usually drive in sport around town. I’m going to do comparison test drives and don’t want to take a step down while spending more money.
$420 36/10
Made deal- thanks for all the advice!
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