Received an offer from a local Cadillac dealer today that was pretty insane. I think this is probably the worst deal i’ve seen while shopping for a car in the last 10 years. There is also a Costco $1500 voucher that is not included in the numbers below.
Location: SoCal
MSRP: $42,010.00
Discount: -$830.35
Vehicle sell price: $41,179.65
Accessories: $1,495 (some paint protection stuff that can’t be removed)
Document fee: $85
License/title: $590
Tire Fee: $8.75
Acquisition: $695
Tax on Collected Item: 570.86
Capitalized Initial Fees: 651.08
Total Cap: $45, 275.34 (They’re rolling everything into cap cost for some reason. )
Trade in: $32,400
Trade in payoff: $26,891
Rebate: -$500 (Cadillac lease cash for anyone currently leasing any vehicle)
Net Cap: $39,266.34
The Selling price of the car isn’t bad for this market but everything else is just terrible. No matter what i try, i can’t get the calculator to be anywhere near the numbers above.
Can anyone help setup the calculator to reflect the above?
Considering that they have a decent sale price for the vehicle and hinted at possible discounting the “accessories” a bit, i think it might be worth a shot if i can get them structure it better? Would they be able to remove all the fees and extras from the cap cost and just make it a lump sump up front cost considering that they’re marking up the MF? Also, i’ll be doing 36/10 instead of 36/12 which should give an extra 1% on the residual. Plus add the costco $1500 and it might not be too bad of a deal. Thoughts?
Most cars do not lease well. They do not have the programs (RV, MF and incentives) to be good candidates for lease-hacking, regardless of what dealer discount you can negotiate. This is truer now than it has ever been. Which means you cannot start your search with a particular car or cars in mind, and then find a way to make them lease well.
Terribly low RV and a marked up MF will not equal a good lease payment unless the car is heavily discounted enough to balance things out - in which this is not the case.
Lease programs are historically bad across the board with limited exceptions.
Additionally throwing your equity from the trade into a bad lease is almost equivalent to setting your money on fire.
If you want this vehicle now, I’d suggest you use your equity as a down payment to purchase it.
Purchasing makes the most sense. Especially with GM offering 0% APR for 36 months for well-qualified buyers who take new retail delivery by 03-31-2022.
The discount is a .00078 using one pay i believe. that part is in the calculator. I don’t mind the markup on the MF if they discount the car enough because then the one pay brings the MF down considerably and makes the entire deal more reasonable.
The MF can’t go negative. The base is so low that a one pay lease doesn’t make much sense. I don’t mind doing a one pay though if it’s worth it. That’s why I want them to discount the car and keep the mf high in hopes that they would sell the car with same discount when I ask for one pay at the end to bring mf close to zero.
Here is a different dealer. These damn accessories they’re all adding on is very frustrating.
Buying it is out of the question. Payments are too high. Trying to get payments down into low 400s. Can’t buy much with that type of budget.
In regards to residual. What difference does that make with todays market. Pretty sure the car will have equity by end of lease at a 47% residual. With the MF being so low, I don’t see the residual being a big deal. It’s unrealistically low at 47%. IMO a $40k car is gonna be worth more than $18k in 3 years.
In today’s market, most cars are selling for MSRP or over. Play with the calculator and see if it is possible to get a monthly payment of $400 on a car w/ an MSRP of $42K and an RV of 47% w/o a huge cap reduction.
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