: GMAC Back in the CTS-V Leasing Game?



C6ZR1
07-29-09, 10:54 PM
I would love a two year lease on my ordered 2010 V. Let's hope the money factor and residuals are decent.

http://online.wsj.com/article/SB124880725658587555.html?mod=googlenews_wsj

GM-4-LIFE
07-30-09, 01:13 AM
I should have freakin waited! This crap always happens to me!

SG

Tasos
07-30-09, 01:25 AM
That would be great. A little late for my V but there's always next time!

Razorecko
07-30-09, 09:11 AM
eh dont be jumping the gun yet boys. Guaranteed that the rates aren't going to be as good as they used to be.

1-2-N-V
07-30-09, 12:38 PM
Man I remember when i bought my GMC Truck 9 years ago. Sticker was $31k. Bought at $27k. Since i had a contracting business, I asked how much for a lease. For i think it was a 3 yr lease, It was only something like maybe $50-70 less a month than to buy it outright. Plus $ down and mileage. The residual if i wanted to buy it back was like $19k+. I told the guy "Geez I just want to rent it for a while not buy it"!

To me it just does not seem logical to lease at all. Especially if you are not a business person. At least there is a tax incentive to lease... or buy for that matter with depreciation. I guess the lure of a few bucks less a month gets people to do it. Just throwing your money away. Just like renting an Apt.

commander112
07-30-09, 01:48 PM
I bet you will not find great leases on V's. High performance vehicles take it hard on the back end of leases. I can recall a few years ago when SRT's were all the rage. Chrysler leases were close to the payment on a loan. The dealer said why would we want to lease these when people will buy them. Made sense to me. If you were GM and you knew you could sell your V production why would you want the car back in a few years used?

ItsJustMyCaddy
07-30-09, 05:36 PM
To me it just does not seem logical to lease at all. Especially if you are not a business person. At least there is a tax incentive to lease... or buy for that matter with depreciation. I guess the lure of a few bucks less a month gets people to do it. Just throwing your money away. Just like renting an Apt.

Assuming your business is profitable, you are paying for the car with pre-tax dollars. Basically it is costing you 65% of the lease rate b/c you are reducing your taxable net income by that amount (assuming 35% taxes). If you buy, you end up with an asset on your books which you have to depreciate in accordance with the tax guidelines (maybe 5-7 years, not sure). Also, assuming the money factor on the lease is comparable to the financing interest rate, the only downside is if the residual is set lower then what the vehicle is actually worth at the end of the lease term, in which case you paid too much each month to get you to that lower residual. Also, I am sure you can find millions of people who would have preferred making the decision to rent a house three years ago, instead of paying a $1M mortgage on a house now worth $500K. Different strokes for different folks I guess.

b4z
08-08-09, 02:15 PM
I don't think Caddy could survive without leasing because historically you should buy a 2yr. old caddy or Lease one.
I'm glad leasing is back but did anybody notice this is not through GMAC.
Am doubting that the lease terms will be attractive because GM will probably not subordinate the lease and take the hit.
Great thing about GMAC leases is that they always offer you early termination if you get into another GM car.

commander112
08-08-09, 02:23 PM
I don't think Caddy could survive without leasing because historically you should buy a 2yr. old caddy or Lease one.
I'm glad leasing is back but did anybody notice this is not through GMAC.
Am doubting that the lease terms will be attractive because GM will probably not subordinate the lease and take the hit.
Great thing about GMAC leases is that they always offer you early termination if you get into another GM car.


GM does not own GMAC anymore. Cerberus does.

Actually, I just researched that and in reality, Cerberus quickly sold most of GMAC after the deal closed to some of their investors and institutional money.

Gary Wells
08-08-09, 03:15 PM
I would be very surprised to see the CTS-V available for lease, regardless of who does the lease. Just my opinion though.

Razorecko
08-09-09, 09:41 AM
The fact is leasing will never again be the bargain it used to be. So if anyone is waiting for a miracle lease you might want to think again.

jjsC6
08-09-09, 08:05 PM
The fact is leasing will never again be the bargain it used to be. So if anyone is waiting for a miracle lease you might want to think again.

Incentivized leases are no different than incentivized purchases. Never say never. It would be like saying we'll never see $3,000 rebates. They look at what it takes to be profitable, and how many vehicles they think they can move and all bets are off.

b4z
08-10-09, 08:39 AM
If I could get a halfway decent lease deal on a CTSV w/ no Recaros I would do it in a heartbeat.
I would throw $6-10K at it and do a 36mo/36K mile lease.
GMAC needs to get back into leasing(not some bank that GM is working with)
Buying a new Cadilllac is a recipe for a lot of pain. Always has been.
The best way to own a Cadilllac is to buy a 2yr. old vehicle or lease.
Cadillac's sales imploded when leasing was stopped in August 2008.

Bigron
08-10-09, 08:52 AM
US Bank is doing GM leases as well, and has V leases from what I have seen.

I work for GMAC but I can't post details on our stuff. But I have been pushing for V leases (not for me but I want a chance at one when it comes off lease).

But trust me, this is not the same programs you would have seen 2 years ago.

Edit: From today's press release:

"(GMAC) The leasing program to be initially offered covers the following models:

2009 Models: Cadillac CTS, Chevrolet Malibu, Chevrolet Traverse
2010 Models: Buick Enclave, Buick LaCrosse, Chevrolet Equinox, GMC Acadia

..... States excluded from this GMAC lease program include Ohio, Michigan, New York, Connecticut and New Jersey, as an existing program is under way in these markets."

I will work to get any info on the CTS-V for you guys.

Bigron
08-10-09, 12:35 PM
Just got the word that CTS-V is excluded on the GMAC side and I assume it is for US Bank as well.

I will make sure to update this if anything changes.

jjsC6
08-10-09, 12:42 PM
TONY, I think we are all waiting for you to check in and let us know what the dealers are being told. I'm 18 months into a 24 month lease on a CTS right now - anxious to hear what my options may be in the next six months (meaning, what kind of residual and money factors are available).

Bigron
08-10-09, 02:01 PM
You can wait for Tony, but I talked to the guys that priced the leases.

Bigron
08-10-09, 09:51 PM
I saw the revised US Bank paperwork and CTS-C was specifically excluded

jjsC6
08-10-09, 10:35 PM
You can wait for Tony, but I talked to the guys that priced the leases.

Sorry, I had not seen your post that the V was excluded when I posted above. Too bad. I have a leased CTS now, and am not interesting in buying a V given that I have no equity to roll into a purchase.

I think certain cars are really going to be hurt as more and more folks like me with leased cars come time for a new car that have not been in the market in the past nine months or so.

With no equity to put into our next car, we either find another lease, or we are faced with digging into our savings for a down payment. For me that will mean looking for something cheaper than I currently have.

CTS NV
08-11-09, 11:48 PM
That's unfortunate. I'm leasing a 2006 V that is up in Sept and given the lack of incentives to finance or lease a new V, I get the feeling I'm going back to the dark side (BMW); not by choice :eek:

nynd
08-12-09, 10:30 AM
No worries - I own a BMW (X5) as well... so.. am on both sides! Both nice vehicles but different purposes!

Bigron
08-12-09, 12:35 PM
That's unfortunate. I'm leasing a 2006 V that is up in Sept and given the lack of incentives to finance or lease a new V, I get the feeling I'm going back to the dark side (BMW); not by choice :eek:

CTS NV just out of curiosity, take the sticker of your V subtract your down payment and all of your monthly payments. Then look up the current KBB trade in value (which should give a "rough" estimate to what the lease company would get for it at auction).
I wonder if those numbers are even close.

CTS NV
08-12-09, 01:38 PM
CTS NV just out of curiosity, take the sticker of your V subtract your down payment and all of your monthly payments. Then look up the current KBB trade in value (which should give a "rough" estimate to what the lease company would get for it at auction).
I wonder if those numbers are even close.

Here they are:

Sticker: $51,395
Cap cost after discounts and rebates: $47,256

Total of lease payments and cap reduction: $23,430 (excluding taxes)
Residual value: $29,295

GMAC Balance: $23,826 (cap - my payments)

KBB trade-in value:
Excellent $23,125
Good $22,025
Fair $20,025

Funny thing is GMAC loses money on the deal if they take the car back and throw it into auction, yet they have told me they wouldn't negotiate a buyout for less than the $29K residual. You'd think $25K would work for everyone, but go figure....

Bigron
08-12-09, 02:56 PM
Thats not too bad.
Dealers are not big fans of GMAC dealing with customers like that since, they are basiclly losing a retail customer.

CTS NV
08-12-09, 05:29 PM
Thats not too bad.
Dealers are not big fans of GMAC dealing with customers like that since, they are basiclly losing a retail customer.

Considering GMAC won't make a penny on this 39 month lease and may lose money, it can't be that great for them. Maybe that's why we have no leases today.

As for dealers, can't a dealer buy the car at wholesale from GMAC and sell back to me at less than the inflated residual?