2008-2013 Cadillac CTS General Discussion Discussion, a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!) in Cadillac CTS Second Generation Forum - 2008-2013; HI All,
Great forum! Questions about how to lease without getting the worst of it. (my butt permanently red from ...

- 05-04-13 12:52 PM #1Cadillac Owners Member
- Join Date
- Sep 2010
- Posts
- 20

## a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

HI All,

Great forum! Questions about how to lease without getting the worst of it. (my butt permanently red from years and years of buying/leasing cars

My trade in: (purchased)

2010 CTS Sedan, Performance, Crystal Red, Nav, Ultraroof, 18" polished wheels.

Excellent condition w/ approx 33K miles. Current payoff (ally) $19,888.30 Dealer trade-in value $24,000

It's my wifes birthday and also our anniversary, so I want to get her a new Coupe.

2013 Coupe, Premium, White, tan/wood interior., sunroof. ... MSRP $50,740

(On a purchase), Dealer says ...... sticker $50740 less $2386 discount to invoice, $2000 rebate from Cadillac, Trade value of 2010 CTS $24000,

Payoff is $19888.50.

This ends up at $42242.50 plus 6% sales tax and fees of $1731.46 (you pay 1% additional in Indiana plus excise tax)

Total amount financed $43973.90. 72 Months @2.9% (ally rate subsidized by Cadillac) Monthly payment is $673.00/month.

Well, needless to say, purchasing is out of the question. So, could someone possible help me figure out (or guess) the residual and moneyrate?

for a 36 mo lease 15K per year.

I'm 66 and have excellent credit score (high 700's)

In the above case, would the cap cost be $50,740 less dealer discount ($2386) less GM rebate ($2K) = $46,354 ??

and where do I apply the down payment of approx $4100? to the cap cost? if so, then cap cost is $42,242.30

Residual? is it about 55% nowadays? if so then ... well, now I'm getting lost as I dont know whether to figure residual against cap cost, or cap cost with down payment (trade-in) I'll use cap cost with no down payment. .. $46,354 x .55 = $25,494.70

Remainder is $20,859.30 (less $4100 trade-in ) = 16,759.30 / 36 months = $465 /mo plus tax (7%) = $498

AND.... I haven't even figured in the Money Factor !!! Yet if I go to the Cadillac.com site and firgure a lease on the same car ... they calculate $429 / mo for 36 months???????????

Needless to say, any help with this is greatly appreciated!!!!

Allen

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- 05-06-13 12:28 PM #2
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

Have you seen the example below on lease payments? Try plugging in the numbers you have and see where it leads. If you have difficulty maybe I can lend a hand, but right now it is "moving week" for me and my time is at a premium this week. Good luck from one Hoosier to another.

HOW TO FIGURE VEHICLE LEASE PAYMENTS

This is merely “” – plug in your own values…*For Example*

Take the Cap Cost (selling price) = $ 26,915.00

Subtract the Residual (55%) = $ 14,803.25

Remainder = $ 12,111.75

Now, take the remainder ($12,111.75) and divide by the Term, or length, of the lease…$12,111.75 divided by, say, 36 (months) = $336.44.

Next, add together the Cap Cost plus the Residual, $26,915.00 + $14,803.25 = $41,718.25.

Multiply by the Money Factor, always a ".00xxx" number. If they don't tell you the Money Factor, get the interest rate and divide by 24 (24 is always a constant). If interest is 6%, then divide by 24 to get .25, then put it after the .00 to get the Money Factor. Now we have .0025 as our Money Factor.

Take the above mentioned $41,718.25 x .0025 to get $104.30.

Add the $104.30 + $336.44 and get $440.74. Figure sales tax ($440.74 x 7% = $467.18) and this is your monthly lease payment.

The money factor is used to figure out the interest rate on a car’s lease. Multiply that number by 2,400 to get the interest rate. So, with a .003 money factor, the interest rate is 7.2%. The residual value is the estimated value of the vehicle at the end of the lease term. Typically, you can purchase the vehicle at its residual value when the lease is up. (The industry’s bible for residual values is the Automotive Lease Guide’s Residual Percentage Guide; the figures can be on the low end and finance companies use this as a guide for setting prices.) Capitalized cost is the total amount that you’re financing, including the negotiated price of the car, all its options, fees and taxes; it should be under the manufacturer’s suggested retail price (MSRP). Finally, capitalized cost reduction is the amount of money you give to the dealer upfront, like a down payment, which is usually negotiable. Consumers should focus on getting a contract with the smallest money down and the lowest interest rate.

- 05-06-13 12:34 PM #3
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

Just talked to my dealer ...

they're saying lease rate on the White CTS Coupe is 2.4%, and residual is 56%

with a trade-in allowance of $4111 will make for a $526/mo on a 3 yr 15,000 per year lease.

He also said the GM rebate on this in $2800

Does this sound correct?

Allen

- 05-06-13 12:44 PM #4
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

So, with the rebate(s) you have mentioned, etc, what is the selling price of the car? Include all taxes and everything, what is the price you are paying OTD? No down payments (cap cost) nothing else.

- 05-06-13 12:57 PM #5
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

$49,440 (discounted msrp) - $2800 gm, = $46,440 * 1.07 (Indiana tax) = $49,904

trade in credit = $4111

- 05-06-13 01:17 PM #6
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

These are my numbers. Prove me wrong!!! (I mean it, please do show me if I am wrong)

Take the Cap Cost (selling price) = $ 42,329.00

Subtract the Residual (56%) = $ 26,006.40

Remainder = $ 16,322.60

Now, take the remainder ($16,322.60) and divide by the Term, or length, of the lease…say, 36 (months) = $453.41.

Next, add together the Cap Cost plus the Residual, $42,329.00 + $26,006.40 = $68,335.40.

Multiply by the Money Factor, always a ".00xxx" number. If they don't tell you the Money Factor, get the interest rate and divide by 24 (24 is always a constant). If interest is 2.4%, then divide by 24 to get .1, then put it after the .00 to get the Money Factor. Now we have .001 as our Money Factor.

Take the above mentioned $68,355.40.40 x .001 to get $68.36.

Add the $68.36 + $453.41 and get $521.77. Figure sales tax ($521.77 x 7% = $558.29) and this is your monthly lease payment.

The money factor is used to figure out the interest rate on a car’s lease. Multiply that number by 2,400 to get the interest rate. So, with a .003 money factor, the interest rate is 7.2%. The residual value is the estimated value of the vehicle at the end of the lease term. Typically, you can purchase the vehicle at its residual value when the lease is up. (The industry’s bible for residual values is the Automotive Lease Guide’s Residual Percentage Guide; the figures can be on the low end and finance companies use this as a guide for setting prices.) Capitalized cost is the total amount that you’re financing, including the negotiated price of the car, all its options, fees and taxes; it should be under the manufacturer’s suggested retail price (MSRP). Finally, capitalized cost reduction is the amount of money you give to the dealer upfront, like a down payment, which is usually negotiable. Consumers should focus on getting a contract with the smallest money down and the lowest interest rate.

- 05-06-13 05:24 PM #7
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

thank you!

- 05-06-13 06:08 PM #8
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

You're welcome.

I don't claim to know much about leasing. A good friend was a BMW Gen Mgr and he gave me all the facts how they figured a lease

----------

You're welcome.

I don't claim to know much about leasing. A good friend was a BMW Gen Mgr and he gave me all the facts how they figured a lease

- 05-07-13 10:07 AM #9
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

stupid website

stupid website

- 05-07-13 11:18 AM #10
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

Actually,the lease ended up being , no down, ..trade-in value = $4111, leased me the coupe at Invoice, added a rear decklid spoiler, n/c.

There also usually is a approx $1200-$1300 payment due at signing ... first payment, plus title fees, etc ... which I also told them to "fold into" the lease, ie no money out of my pocket.

Lease Rate was 2.4%, Residual = 56% 36mo, 15K per year. ..... payments = $526

I've purchased my original CTS from them approx 3 years ago, and had a good experience, so I felt comfortable buying from them again... yep, I'm sure they found a way to make their money, ... but I couldn't locate it myself ....

thanks for the help

Allen

- 05-07-13 11:29 AM #11
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

Good for you. While my method may not be 100% correct, at least it is a good guide and helps eliminate the use of Vaseline.

Now you have to post pictures...it's the law.

- 05-07-13 11:37 AM #12
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

I will,, getting the car on Thursday ... will post some up on Friday...

take care, and thank again for the posts.

Allen

These'll keep ya busy til I send photos of the Coupe..

Lynn's 2007 Mustang GT (I did all mods to that one)

http://www.treasure-cove.net/lynnzgt.htm

a "cheeky" video of Lynns CTS....

http://www.youtube.com/watch?v=thbb6RHIut0

and a few photos of my ride:

ss1.jpg

ss2.jpg

- 05-07-13 08:40 PM #13Cadillac Owners Member
- Automobile(s): 2012 CTS Coupe, 2003 CTS
- Join Date
- Nov 2008
- Location
- MI&IL
- Age
- 28
- Posts
- 41

Wow, either incentives have really changed or the extra 5k miles make a big difference. I leased my wife's 2012 CTS Coupe last July for 24 months/10k miles a year for $277 a month with $4000 down which basically is the same as your trade-in.

I got a quote for a 2013 CTS-V Coupe for the same terms for $675 a month and $1000 due at signing.

- 05-08-13 10:22 AM #14
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

I've been trying to understand all of this ... so far ...

Auto Leasing: Monthly payment is sum of 3 items:

1. Depreciation Payment

2. Finance Charge

3. Taxes

Depreciation payment = [(Net Cap Cost) - (Residual Value)] / Term of lease (months)

Residual value = MSRP x (residual percentage) [In my case: MSRP = $50,740 residual = .56]

Residual Value = $50,740 x .56 = $28,414.40 (cars value at the end of the lease)

Net Cap Cost = [MSRP] - [Down Payment or Trade-in Value] - [Dealer Discounts off of MSRP] - [Manufacturer Rebates] + [other fees]

In my Case: Net Cap Cost = $50,740 [MSRP] - $4111 [trade-in] - $2633 [Dealer Discount] - $2800 [GM Lease Rebate] + $1250 [*1st payment, prep, etc]

* Dealer said even thou I had a trade in, there was a Downpayment of 1st months lease, prep, maybe profit & other fees ,, so I told them to include it in the lease)

Net Cap Cost = $42,446 so ...

1. Depreciation payment = $42,446 [net cap cost] - $28,414.40 [residual] / 36 [3yr lease] = $389.70

2. Monthly Finance Charge = [ $42,446 [Net Cap Cost] + $28,414.40 [Residual Value] ] * .001 [Money Factor [= 2.4% [Lease Rate] / 2400]]

Monthly Finance Charge = $70.86

3. Sales Tax payment = [Depreciation Paymt + Finance Charge * Indiana Tax rate = .07] = $32.24

$389.70 + $70.86 + $32.24 = $492.80, monthly lease payment.

They quoted me $525/mo ... so, ... when I go in tomorrow to pickup car,... I'll have to figure out what the difference is.

Yep, I better take some Vasoline with me ....

Allen

- 05-09-13 11:32 AM #15
## Re: a Few Lease Questions (hopefully NOT taking vasoline with me to the dealer!)

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