Probably gonna get flamed here, and yes, I now know Cadillacs do not lease well. Anyway, here goes.
Located in Florida. Wife has a 2021 XT6 FWD Premium Luxury lease. 4 payments left and she is already 20k miles over the contract. Got the Pull Ahead and 3,250 rebate offer from Cadillac in the mail. Local dealer is offering a 2024 XT6 FWD Premium Luxury, and is offering to pull ahead her lease for it. 36/12k lease for 679/mo and 5679 DAS. Thoughts? It is something like this with Cadillac or eat 5,000 dollars in mileage overages in 4 months.
*Mileage is not an issue for us any longer since kids aren’t in travel sports.
Is that $679/month after taxes? If it’s after ~7% FL taxes. The deal is decent. I believe they’re offering you 7% off MSRP pricing (before rebates) with buy rate money factor. But you should double check all this by asking the sales person for the detailed lease structure.
As your gut is telling you… LH will likely advise that leasing an ICE Cadillac is going to be relatively expensive compared to other options. But, if GM will eat all the extra miles, that’s a lot of implied savings for this deal. Also, your wife seems to like rolling around in a new FWD XT6, so that’s a big win too.
BTW, Costco has a $1,000 incentive that seems missing from your deal. You should check to see if the XT6 qualifies and it should stack on top of the $3,750 loyalty.
there are a lot of numbers missing to really evaluate this deal, but I agree with Max that the pull-ahead probably isn’t the deal you think (objectively evaluate the deal without the lease turn-in)
if you are comparing to something else and hung up on $5k in overage, this deal have over $5k DAS
at 6300 mi/year over, I can’t imagine 12k miles a year is enough. Don’t set yourself up to be in this situation again
I assume you already looked at payoff and what actual buyers would pay for this, and it’s upside-down?
what are the numbers for buying it out and wrapping it in an extended warranty?
I don’t understand why when someone asks about leasing a new car for their wife, the narrative shifts steering that person into looking at a used car or keeping on driving whatever they’re in. I get it, driving old / used cars saves money. The financially smart move is to keep an older car for longer. But it’s like you all are ignoring @Swatstar10’s first sentence - which is this car is for his wife.
Getting a woman in a car she likes to drive with many is a huge win. She likes the 3 row XT6. She’s been driving mega miles to get the kids to sports for 3 years. The car she’s in now probably smells like stale sports gear and probably has the normal creaks and rattles of any 55k miles GM car. It’s time to move on. Women don’t move backwards… she was in a brand new Premium trim XT6 3 years ago. Is she really going to be cool moving backwards?
@Swatstar10 - you know your wife best… maybe she’s totally fine saving a bunch of money and doing the financially smart move. But I figure you wouldn’t be posting here if downgrading to a used Highlander was on the table.
If she’s not 100% stuck on the idea of a new XT6, please explore the other options. Some could be cheaper; although that $5,000 you owe on the over-miles is still a tough bogey.
The Lincoln Aviator Premiere RWD 3 row is a comparable to the XT6 and they’re offering up to $3,000 conquest incentives to pull in competitor leases.
The Volvo XC90 T8 Recharge 3 Row has some nice deals… check out @AutoNinjas
There are also 3 row EVs she may like… although they don’t seem to be leasing very well.
In addition to the above, how are you benefiting from this new contract? That’s ~$30,000 to lease a car with a sticker of $57k and most likely selling below 55
Like obviously you’d never spend 60k to lease two of these cars over six years. So why would you spend 30k for 3?
I do agree that @max_g usually points people to financing, keeping the current car, etc., and that this can sometimes be… premature, but I actually thought his comment in this thread was more questioning if there was a true pull-ahead program? (which was my own question, as well)
Isn’t that kind of moot? Pulling ahead makes sense only when the new lease you’re entering into makes sense for you
Like if we took a common car on LH such as the EQS and offered to pull everyone ahead at $1,000 for a 450, what’s the acceptance percentage? Probably close to 0?
I think @jeisensc’s post will help us to determine if a new lease makes sense for the OP.
Simply stating from the outset that a lease on the car doesn’t make sense when we don’t know the OP’s priorities and such isn’t a particularly helpful response, IMHO.
-If I go with another brand, I’m going to eat the overage of 5,000ish when the lease is over. I’m not buying the car with 56,000 miles on it. Plus, it is more upside down in trade value than 5,000.
And
-Basically, outside the 5,000. I’m looking at 679 up front and 679/month for 36/12 for the new XT6. Three row vehicles seem to be pretty difficult to find for 679 with what is basically first payment at drive off.
I’m not a lease pro by any means, but I guess the deal doesn’t seem terrible.
Max will only endorse a lease if it’s a killer deal or unicorn. Everything else he’ll point people to CPO or to an Electric/plug-in-hybrid (they have the most incentives and best leases at this time).
For some reason it’s unfathomable to many on LH that some customers are leasing new ICE cars at 52% 3yr 12k per annum residual. I’m afraid you won’t get much help from the average LH user to make you feel better about leasing a XT6.
The problem is, some buyers don’t care about BEV and don’t want a CPO. If that’s your wife, then that puts you in a rock and a hard place since it means getting whacked by the perpetual lease expense.
If your wife is open to changing up the narrative on car ownership for 5+ years instead of leasing, check out the Lexus TX. It’s a bit more pricey due to lack of significant discounts. But if you own it longer than 3 years and finance at an attractive rate, it would make a bit more sense than staying on the XT6 3-year lease treadmill.
@paranoidgarliclover the standard GM Financial lease pull-ahead (when it’s active) is as follows. To your point, there’s a chance @Swatstar10 will hit the $2,000 limit on non-Escalades. And the waiver on the over-miles is something he’ll need to get in writing. That type of program seems more like a form of trunk money than it is a simple lease waiver.
