: Cadillac Projected Resale Value



billc83
11-24-08, 09:44 PM
CAUTION: MATHEMATICS AHEAD!

The following was reported by both domestic-unfriendly The Truth About Cars (www.thetruthaboutcars.com) and Joe Sherlock's blog (www.joesherlock.com), as originally reported by Automotive News regarding Cadillac resale after a 36-month lease:

"Cadillac ranked the lowest of all luxury brands in projected resale value, expected to retain only 36.9 percent of its value in a segment that averages only 44.3 percent value retention."

What this means for you and me (and what you may know already): Used Cadillacs can be a relative bargain.

Since most CTSs I've seen have an MSRP of $40,000, I'll use them as an example. These are fairly well-optioned examples, what I'm assuming most buyers will be looking for. Using this projected math, in three years' time, an '08 CTS should be selling for just under $15,000.

Leasing rates are determined be projected resale values. After talking numbers with a salesman, I learned an '08 CTS can be leased for $550 a month for 36 months. That would be a depreciated value of $19800, plus the few thousand dollars that would be due at signing. This method seems more optimistic than Automotive News' report, but is still a huge depreciation hit. Even without cash due at signing, the projected value of a CTS in 36 months is just over $20,000, about HALF of the original MSRP. That additional cash should drop the projected price to $17k - $18k territory.

I just figured I'd post this up for all to see. Even if you weren't planning on buying a CTS, you could crunch similar numbers with other cars for future planning.

Happy motoring!

orconn
11-24-08, 10:38 PM
Is this really news? I thought that we were all pretty aware of the bargains to be found with low mileage used Cadillacs. To those who cringe at the cost of post-warranty maintenance cost of Cadillacs they ought to talk to a few "honest" Mercedes owners about their experiences with Mercedes (or Audi, or BMW) labor and parts. So if one is in the market for a "luxury"car and wants the performance of a V-8 in a car well suited to American driving a Cad or an equally depreciated Lincoln may be the answer.

Tmcc-V
11-29-08, 11:37 AM
Add in Cadillac's Certified Pre-Owned program, which provides warranty coverage far superior to that on a used BMW or MB and the used Cadillac is a geat deal. My used caddy is 2 years old with only 20K on it so I have a better than new warranty (4 year / 80K) and I paid less than 40% of new sticker. this is why Consumer Reports (not domestic friendly) rated the Certified SRX as the best used car value in America not long ago.