So I have been communicating with 4 different dealerships that I have verified have excess 2020 Escalade ESV Prem Lux inventories. I know that the 2021 is about to hit and while its likely to be in high demand and low in supply, I was hoping to have some good offers. But I am dissappointed. Here is what I have gotten back. Now keep in mind that no real numbers have been broken down to me, which further aggravates me. I have done a ton of research and feel my expectations are not set too high based on what I found on edmunds and here.
I am wanting a 2020 Escalade ESV Prem Lux model for around 1000.00 a month. Of course how the dealer gets to that number could be achieved many ways.
Dealer One: 1600.00 a month with a RV of 42k on a 89k msrp (no discount) for 39 months and 10k year miles and 2 trades and 3k down. I believe she said via phone that the MF is .0007ish. I was like, what the heck…the MF is high! No incentives as I have never leased and never dealt with the dealership to have a relationship established except for ordering a C8. Or she could do a loaner with 3-5k miles for 1400.00ish.
Dealer Two: 48 month lease, with your 3k down plus 2 trades(worth about whats owed) first payment when pick it up, It would be $1663 a month at 10k miles a year.
The other two dealers havent gotten back or they are requesting that I bring my trades to them for inspection before they will even talk to me or give me a number. AND this dealer wants to run my credit for the quote?!? WTH.
If this is what leasing looks like, I’d much rather take myself to carmax and buy a gently used ESV. Am I being unrealistic? Am I missing something?
So if the RV on your $89k Escalade is indeed $42k (thats a ~47% residual not great to get a good lease). Assuming that you can negotiate a 10% discount (may be very difficult). Then your $89k escalade would sell for $80k plus dealer fees, taxes, drive-offs minus any incentives.
With a 10%discount, You are at ~$1000 a month just do to depreciation. You need to add in cost of money plus cost of fees and taxes and other drive-offs.
use the LH calculator to characterize the deal you want. Then communicate with the dealers again
I asked her if they would consider getting the purchase allowance added (about 8k or 10%) and she said they “arent allowed to do that” but if I wanted to purchase she would give that to me. And its what I was hoping for.
For my first lease experience at all, I never expected the 1% lease deal. That would be 850.00ish a month. I have a 2016 ESV now that we purchased and my payment is 912.00 and so I told them I wanted to be close to that number. The reason I want to upgrade is because we are building a home and got approved for a jumbo construction loan BUT we have to get rid of all debt and move it to our business s-corp for our rides to free up our DTI. Normally we wouldnt have to do this but its a pandemic and banks are shaking in their booties.
That makes sense. I think the big thing is that these dealers are NOT willing to budge on their MSRP’s. One dealer has 14 of them. The other has 5. One has 7 and the other has 12. I’m wonder why they arent willing to do this unless they think that when folks come in to purchase a 2021 and they arent available that they will be able to move their 2020’s on them.
Just because you want that number doesn’t mean a dealer will be able to get there. Your expectations aren’t based on any valid information and probably unrealistic.
Purchase and lease incentives are different. Where I live in the Los Angeles area the lease incentive is $2000 ( need another lease to qualify). In Los Angeles the sales incentive is $9000. So that may be the 10% discount they referred to
I’d be pretty careful on this one, we’ve seen a number of times where the bank allows an S-corp to lease a vehicle and since you are the guarantor, it also shows up on your credit report. If you go this route just make sure you keep copies of the business check paying the monthly payment.
Would it not be better to sell the two cars to Vroom, Carvana, etc…and perhaps pay off a little more of the 2016 and once you get the mortgage squared away see what’s going in the market towards the end of the year for either new or used?
Like @Masterblaster stated purchase and lease incentives are two separate things.
Go lease a well equipped 2021 Yukon for 1g a month. It’s going to be 10 times better than an outdated Escalade (minus the feeling of societal importance the Escalade may give you).
I am also up for yukon denali xl as well. Its not that I’m stuck on escalade, but just prefer luxury touches Also looks at navigators but hubby hates the back end
Ya the new Denalis are nice but this time around not too much different than a loaded SLT. They aren’t going for less than MSRP at the moment but if you have supplier/first responder and conquest/loyalty its palatable. If you can’t get better quotes on the Escalade I would check them out. Or wait till dealers are more desperate on to get rid of 2020s.
This seems better then any dealer offer you’ve gotten so far. It reflects a $3343 pre-incentive discount (which can be improved with GM supplier pricing) and $5250 in rebates. All of the available premium lux trim are in the 90K to 100K MSRP range – thus about $200/mo higher.
I truly wanted an honest opinion. On to purchasing a used!
Also looks at navigators but hubby hates the back end 
