: Lease or Bought



bigdog9586
08-01-08, 09:55 AM
For those out there who bought/leased their STS which was it, bought or leased. Reason I'm asking is due to the problems in the media with car companies doing away with leases. Wonder what it would do the Cadillac sales.

pjbizjak
08-01-08, 10:52 AM
Bought my 07 STS because I plan to keep it for the life of CPO warranty, 6 years/100,000 miles. General rule of thumb, if you drive more that 12000 - 15000 miles a year it's better to buy.

hazcaddy
08-01-08, 11:03 AM
Bought. Don't like the concept of paying a whole bunch of money and then having nothing to show for it at the end of the lease.

MARKVIII
08-01-08, 12:54 PM
Bought used..let someone else take the hit.

grilco
08-01-08, 04:57 PM
Leased for 2 years. I want to see what comes out in 2010 in place of the DTS & STS. I drive 5000 - 7000 miles a year. I hope I didn't make a mistake leasing.

PEAROB1
08-01-08, 06:00 PM
Bought. Don't like the concept of paying a whole bunch of money and then having nothing to show for it at the end of the lease.

Haz, I agree with you. Back in the mid 90's I used to see the commercials for some of the "mid level" lux vehicles showing how much you can lease one for. For an extra $100 in most cases you could finance it through your bank/CU and have something to show after 3 or 4 years. (Unless you use it for business purposes)

c5 rv
08-01-08, 10:30 PM
I drive 25 - 30K miles per year. I've bought new or leased for years. I currently have two 15K / yr. lease vehicles plus a summer car. I'd like to go back to one daily driver plus a summer car. My plan is to buy a CPO unit next time, drive it for 2-3 years, and replace it. I'm building up a car savings account to finance my own purchase. We'll see how well this plan works.

I think that if you want to have a new domestic luxury car every 2-3 years and drive a reasonable number of miles (under 15-20K per year), leasing is cheapest in the long run. If you finance for 60 mos with zero down instead of lease, you'll end up paying up to $200 more a month and be at least a few K$ upside down in 2-3 yrs. Plus, you'll have to sell the car privately to avoid being fleeced with the trade in value. You never "have" anything to show except higher cost.

The whole buy-lease dynamic is likely to change with the financial challenges the D3 and their finance arms are having. Chrysler has exited leasing and Ford boosted the cost of truck and SUV leases to a price point at or above traditional financing. GM said they are maintaining the status quo for another month. After that, I suspect GM will continue to provide lease incentives to high value and high MPG vehicles, but trucks and low value vehicles will have lease programs that encourage traditional financing.

Cliff8928
08-02-08, 01:19 AM
STS is bought (used, 18k miles on it). XLR is leased (about 15k miles on it right now, goes back in oct.)

STScaddyman65
08-02-08, 05:28 AM
Bought used, 13K on it like Mark did and let someone richer than me take the hit. Plus I drive 500-600 mile per week just to go work so leasing would be a foolish thing as far as I know. And like one brother said, " I want something that's mine when I am done".
Don't get me wrong, leasing can be the right thing for the right person. When GM owns the car and has to fix any issues with it and you don't drive more than 10-12K miles a year and you like a new car every 2 years, it's really a great deal. I just don't fit that profile right now. Plus, GM's quality is sooo much better and driving 200K plus is kind of expected and achieved anymore.
It's right for some and not for others, I was talking to a co-worker just this week who wanted to lease a cobolt for 2 years and the lease payment was OVER 400 dollars a month!!! He could be in a 08 CTS for that money!!!!
I am unsure of what the leasing will do in the future but I am sure I will buy, drive the piss out of my Caddy's and then buy again.

c5 rv
08-02-08, 08:06 AM
I really hope GM doesn't mess with the Cadillac CPO program. I drive a lot of miles per year and want to keep a car under bumper-to-bumper warranty, so CPO is probably the least expensive way to drive a late model Cadillac.

Buzz48317
08-03-08, 12:45 PM
OK...I lease new for a variety of reasons not the least of which is that I like to drive new cars more often. I would imagine that as this thread goes on you will find that those that buy their vehicles are buying pre owned cars and those that take new cars off the lot are, more often than not, leasing their cars.

For those that think that you can buy a new vehicle for $100 more per month than you can lease it for you are delusional. Here's the deal that I struck with the dealer. I qualify for GMS and I leased a PEP-ed STS last July. $0.00 down (I came up with first payment, plates and tax on rebate money only) 24 month lease allowing 12,000 miles per year on the car (plus the 3,555 miles that were already on it from the PEP program) and my payment is $460.00 per month including the tax.

Had I bought the car the price would have been somewhere around $40,000 (it was PEP 2 pricing) plus the taxes would have added another $2,400 to that leaving me a balance to finance of around $42,400. Even if I got 0% financing for a 72 month term the payments would have been $588.00. So it would have cost me an additional $120 per month (plus interest) AND I would have had to commit to the car for an additional 4 years.

Now here's the brilliance in leasing. Had I made those $588.00 payments for 24 months and then wanted to trade out of the car I would have paid down $14,112 of the car (again assuming that I got 0% for 72 months it would have been less had there been interest figured in) so I would still owe $28,288 on the car. Judging by the fact that there are 2 year old STS's on my dealers lots that they are asking $23,900 with the same equiptment that I have on mine I would guess that I would be at least $8,000 upside down on the trade. So keep paying that $588 payment trying to get to a point where what you owe equals what the thing is worth...the problem is that the value of the car is continuing to move down. On a 72 month finance contract with 0 interest you're probably gonna hit that point somewhere between 36 and 48 months provided you don't put a lot of miles on the car. If you are a high mileage driver this gets pushed further out AND if you have interest figured into your contract this number gets pushed further out.

Leasing dosen't work for everyone, but it should work for the majority if you do the math. Look at it this way, look at all those poor SOB's that bought Ram pickup trucks when gas was 2 bucks a gallon. For God's sake Chrysler dosen't even want to take the risk of leasing these things anymore because they know that even they will be upside down when they come in off lease...and they made the profit of selling the thing in the first place. There's gonna be pickup drivers that are going to be into their cars till darned near their last payment....and then what do they have a car that's worth maybe 5 grand that they spent multiple times that amount vs. had they leased the same truck.

bigdog9586
08-03-08, 05:52 PM
I agree with Buzz48317. My last STS I leased for 2 years and at the end the price they wanted to buy it was about 4K more than bluebook. I talked with my dealer before that on another leased vehicle and I asked him if he bought the lease vehicle or let GMAC come get it. He said if it was a car he wanted he offered them low bluebook to even below that depending on the market. When my lease was almost up I called my salesman and told hime to call GMAC and gave him a price that was low wholesale and he called back a few hours later and they countered with $200 more and I took it. Sold it about 6 months later for $500 more than I paid.

cstreu1026
08-05-08, 02:21 PM
My wife and I both got new cars in 2005. We leased a new Grand Cherokee for her and I bought a Neon SRT-4 ACR for myself. We traded our 2003 Explorer on the Neon and paid the difference. I am glad we leased the Jeep though since the trade in value on it now is about $10K less than the pay off. We are under the allowed miles so the intention is just hand the keys back over to them next month. With that in mind we started looking for new car. We were ready to sign the papers to lease a new SRX, but before we did we check out a 2005 that was fully equiped and certified. We decided to buy the used one and let someone else suffer the nearly $40K in depreciation from the window sticker. I have been looking at some CPO STS. They seem to be really nice cars and have horrific depreciation. With the warranty to 100K miles I can pick a used one up with very lowe miles for almost half of what a a new one runs and still have the peace of mind that the warranty provides. Now if I were dead set on owning a brand new luxury vehicle I would lease it, but I drive too many miles to consider that an option.