Hi
I noticed that the residual % is quite different for pre-negotiated deals vs rate finder for Cadillac in CA.
Same term, same mileage, same trim but the % is different. Why so?
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Are you looking at evs and were the pre-negotiated deals from last month before the ev credit went away (that Cadillac rolled into the residual value)?
EV yes but the deal is currently posted in the PND section. I believe it was updated.
Only speculating here, PND may require a dealer / broker to manually update certain numbers each month vs it being automatically updated.
Maybe @michael or @littleviolette would know what goes on behind the scenes on PND?
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Just spoke with a dealer and the residual is the one noted in Rate Finder. The PND should be verified.
I have gotten calls from two dealers claiming that they are “one of the only” dealers in CA with this extra-enhanced residual, in the 85% RV range? MF is jacked up to over 7%, but they sent a deal over with the 85.12% rv…so maybe something GMF is pushing behind the scenes?
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That’s correct. We would need the dealer to update the residual value manually on PND if it changes mid-month. Let me PM the OP for further information. Thank you for flagging this for our attention.
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Before the EV tax credit expired, GM Financial paid deposits to dealers to buy essentially all EV inventory, in order to capture the $7,500 tax credit themselves with the intention of passing on the savings to lessees.
Accordingly, GMF is supporting leases on those units through residual value support:
Residual value ($) = (Posted RV% * MSRP) + $6,500
GM Financial believed this “loophole” would be valid through year-end, but the government recently told them this would only fly through the end of October.
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