: Facing layoff &resale value is horrible!



Period
11-18-12, 09:16 PM
I bought an 2013 XTS Platinum FWD in September and just found out I am facing a layoff so I have to trade the XTS. The resale vale is between 43 and 46,000 dollars. I thought the Korean cars had horrific resale value. I would be very careful if you are considering an XTS. This is a sickening situation to know that a car I paid $56,000 just three months ago (sticker was nearly $59K) has dropped by $13 to $16,000 in THREE months! The resale value of what I thought was the best America car offered is worse than a heavily discounted import. Think hard before you buy Cadillac. It is a huge waste of money if you are forced to trade it!

flying fossil
11-18-12, 09:53 PM
Anything you buy will loose about 20% just by driving it off the lot. Lucky you didn't get a Lexus or Bugatti.

Period
11-18-12, 10:03 PM
This is my last Cadillac. Next time it'll be a Lexus or Acura where the drop won't be so maddening! I figured a $5,000 drop would be in the ballpark not 13 to 16 thousand! (Well over that 20%). And I just read where used cars were going up $1000 due to hurricane Sandy. Cars are such a waste of money - never another Cadillac for me. I would have been better off buying a Hundai.

carter's_sts
11-18-12, 10:18 PM
First, sorry about your layoff!

The American luxury cars are crazy on the resale market. Everyone seems to want the German or Japanese cars and they don't drop as much.

But Cadillacs are a great value on the used market. Sorry that doesn't help you at all.

thebigjimsho
11-18-12, 11:00 PM
This is my last Cadillac. Next time it'll be a Lexus or Acura where the drop won't be so maddening! I figured a $5,000 drop would be in the ballpark not 13 to 16 thousand! (Well over that 20%). And I just read where used cars were going up $1000 due to hurricane Sandy. Cars are such a waste of money - never another Cadillac for me. I would have been better off buying a Hundai.

First off, I'm glad this will be your last Cadillac.

You decided to buy a brand new car and then sell it in 3 months. How do you know your XTS is worth that little? Because a dealer told you? What dealer? A Hyundai dealer?

Odds are, if you're trying to trade in on a lesser car at their dealer, they will struggle to unload a much more expensive XTS. If it's the Cadillac dealer you got it from, maybe they want to make a killing on you.

The point is the number you quoted for trade-in means squat. None of the car value sites I used could offer ANY numbers at all. Its too soon to get reliable numbers. Any number given you is pulled out of mid air. So your rant is baseless...

DG2
11-18-12, 11:23 PM
First off, I'm glad this will be your last Cadillac.

You decided to buy a brand new car and then sell it in 3 months. How do you know your XTS is worth that little? Because a dealer told you? What dealer? A Hyundai dealer?

Odds are, if you're trying to trade in on a lesser car at their dealer, they will struggle to unload a much more expensive XTS. If it's the Cadillac dealer you got it from, maybe they want to make a killing on you.

The point is the number you quoted for trade-in means squat. None of the car value sites I used could offer ANY numbers at all. Its too soon to get reliable numbers. Any number given you is pulled out of mid air. So your rant is baseless...

Outstanding response !! The XTS is a hot car on the market , you don't go crying to a dealer for a trade especially if you told them you lost your
job. They are totally ripping you off.

eBay motors or any other way to sell your XTS privately that's the way to go. Before you bash Cadillacs be smart. A dealer is not out to be your friend they are out to make maximum profit

rayle
11-19-12, 12:26 AM
I'm sorry about your layoff.

Yes, you should have bought a Hyundai.

carter's_sts
11-19-12, 02:41 AM
Do a search on Cars.com. I just saw 24 used ones Nationwide. Not many, but it will give you an idea what dealers are asking for them.

CAPT Mike
11-19-12, 09:04 AM
Seriously, layoffs spell disastor for a family, but you need to start looking to find another position to keep your household together. With that being said, blaming cadillac for this bump in the road is absurd. Give you some examples of real world, my world. Traded a Lexus SC430 (paid 65K) 10 months after purchase and lost 15K. Every BMW that I traded was always appraised at 5K below KBB. A Saleen Mustang appraised for trade at a "mere" 12K below Black Book value. Most of us have been around the block once or twice and if you have to trade early for whatever reason know that you are going to get hosed. Your choice to let it happen or not. Last, but not least; would you pay 56K for a 3 month old car when you could order a brand new one for the same price? Of course not! You would want a big discount! So, sorry for your plight; start figuring how to get yourself on more solid ground instead of ranting. BTW, Hyundai vice a Cadillac? Really?

Ludacrisvp
11-19-12, 09:11 AM
Sorry to hear of the layoff ... but buying new is always a loosing money operation.
As hard to obtain as the XTS is I would recommend selling it privately to someone instead, or find a Caddy dealer that needs one.
Trade-in values for a new to market car are not going to be accurate.
Perhaps it was overlooked but I didn't see any mention to the number of miles on the car, if there are any cosmetic issues / damage to the car, if the car has a lot of options or not. (I realize its a Platinum but there are bound to be options that can be added to a platinum too) Color can also be a factor on value.

Bottom line is unless you can afford to toss a large % of the MSRP on the ground and not care never buy a new car.
My 08 STS was stickered at $68,750 ... its worth $19k on trade now, KBB retails it at $26k with 71k miles on it.
If I had bought it new I would feel really ripped off and this is 4 model years old and is a discontinued model too.

brock123
11-19-12, 12:18 PM
Not sure what the dealer backlog is like in the states but in Canada there's zero stock anywhere in the country (using the stock search on GM's website). Any luxury car is going to depreciate a ton as other people mentioned but I think if there was any car in this price range you'd want to be stuck with in your situation it would be an XTS since anyone that wants one has to wait a while

S420merc
11-19-12, 01:54 PM
American luxury cars take a beating in the used car
Market. I bought a SRT8 300c a few years ago The MSRP
Was 57k new i bought it 6months old and 5k miles for 33k
It was a Chrysler Executive Car. I am looking for an XTS Platinum AWD
Now the MSRP is 61k and planing to pick up one an Executive car for
40k -42k so thats the deal. American cars take a beating when u drive off the lot

thebigjimsho
11-19-12, 03:30 PM
American luxury cars take a beating in the used car
Market. I bought a SRT8 300c a few years ago The MSRP
Was 57k new i bought it 6months old and 5k miles for 33k
It was a Chrysler Executive Car. I am looking for an XTS Platinum AWD
Now the MSRP is 61k and planing to pick up one an Executive car for
40k -42k so thats the deal. American cars take a beating when u drive off the lot

Umm, all luxury cars do. Especially the Germans. Even Lexus.

CAPT Mike
11-19-12, 05:16 PM
I forgot to mention in my earlier note about my experience with my BMW X5. Purchased a 2011 "to be built" model optioned out diesel. MSRP 65K. Delivered Aug 2010. Transmission shift is electronic, needing a soft touch holding buttons to change gears. I like it, but the wife hates it. She won't drive the vehicle. Got tired being the driver/chauffeur. So I approach my BMW dealer and tell him my woes and that my wife wants to go back to her 5 series It is 9 months later (May 2011) and there are 5000 miles on the odometer. No problem states the my "sales consultant." He has an on the lot 5 series loaded for 65K. So I'm figuring, keeping the peace and my sanity is worth 10K. WRONG!!!! He wants 25K + my X5 to take the 5 series out the door. Sorry to be so long winded, but when it comes to cars, anyone who expects minimal depreciation must have just fallen off the turnip truck. And I apologize to anyone in advance if you take that statement as in insult.

carter's_sts
11-19-12, 10:04 PM
American cars definitely depreciate faster than the foreign ones. I price used cars all the time and the Bimmers and MBs don't drop nearly as fast as Lac and Lincoln.

I never price Chryslers.......LOL.



Umm, all luxury cars do. Especially the Germans. Even Lexus.

Period
11-19-12, 10:57 PM
First off, I'm glad this will be your last Cadillac.

You decided to buy a brand new car and then sell it in 3 months. How do you know your XTS is worth that little? Because a dealer told you? What dealer? A Hyundai dealer?

Odds are, if you're trying to trade in on a lesser car at their dealer, they will struggle to unload a much more expensive XTS. If it's the Cadillac dealer you got it from, maybe they want to make a killing on you.

The point is the number you quoted for trade-in means squat. None of the car value sites I used could offer ANY numbers at all. Its too soon to get reliable numbers. Any number given you is pulled out of mid air. So your rant is baseless...

Your comments are baseless (but the name calling says a lot about you) for your information one Cadillac dealer offered $43k, the one I bought it from offered $45k and a HONDA dealer offered the $46K i sighted. Maybe you should get YOUR facts straight before making the accusations YOU made! Period. And Cars.com have quite a few Used Platinums for sale so the numbers I stated are NOT pulled out of midair as you rant, thank you.

----------

I never had to sell a car so fast after buying one so I never experienced facing such a big loss so quickly-sorry to disappoint you veterans. The car is perfect (I am über-anal about my cars so I am ultra careful) and it looks brand new. It has less than 5,000 (somebody asked above) and I am going to sell it myself. I appreciate the kindness presented here and hope that karma is kind to the hatred. I just wanted to share the experience (and the Hundai comment was to illustrate the concept of resale value but the truth is the dealers are sharks). Thanks to all for the compassion and ideas. I'll let you know how it works out. God bless.

b4z
11-19-12, 11:11 PM
Buy a 2 year old caddy or lease a new one. Don't buy a New caddy unless you are going to keep it.

thebigjimsho
11-20-12, 04:16 AM
Your comments are baseless (but the name calling says a lot about you) for your information one Cadillac dealer offered $43k, the one I bought it from offered $45k and a HONDA dealer offered the $46K i sighted. Maybe you should get YOUR facts straight before making the accusations YOU made! Period. And Cars.com have quite a few Used Platinums for sale so the numbers I stated are NOT pulled out of midair as you rant, thank you.

----------

I never had to sell a car so fast after buying one so I never experienced facing such a big loss so quickly-sorry to disappoint you veterans. The car is perfect (I am über-anal about my cars so I am ultra careful) and it looks brand new. It has less than 5,000 (somebody asked above) and I am going to sell it myself. I appreciate the kindness presented here and hope that karma is kind to the hatred. I just wanted to share the experience (and the Hundai comment was to illustrate the concept of resale value but the truth is the dealers are sharks). Thanks to all for the compassion and ideas. I'll let you know how it works out. God bless.

Name calling? That's a riot. I never called you anything. Again, baseless rants and made up facts.

----------

Did you think I wouldn't go check cars.com? The cheapest used Platinum was just under $55G.

Again, if you think that two dealers offering you garbage for trade-in value equals the actual value of your XTS, then you have no clue.

DG2
11-21-12, 08:43 AM
These dealers are totally ripping you off dude. Hopefully you'll get a better job fast as the economy is getting better but don't dump negatives on the XTS based on the crooked dealers you went too. The are clearly taking advantage of your situation.

Mike Zucker
11-21-12, 09:36 AM
As said above, any used car loses around 20% of the value when driven off the lot. Flip it around from the buyers point of view - would you buy a used car for 10% off when you can get a new one for a few dollars more ? Do you know why the car is sitting on the "used car" side after a few months ? You will always wonder of it's a lemon ...
Anyway, I took the hit a year ago. I had bought a new SRX, wanting the cargo utility. First "truck" I ever bought in my life. Didn't like it that much when I test-drove it, but thought I would get used to it. 10 months later, absolutely hated it, and was annoyed making the payments ... Ordered a new (12) CTS coupe. I had paid 40K for the SRX, and the dealer gave me back 32K - I thought they treated me very well, considering I had used it for 11 months, and they knew I didn't like the vehicle and had ordered something new ...
I guess it all depends on your outlook / expectations ....

GreaseMonkey
11-21-12, 09:51 AM
So how again is this Cadillac's fault? Someone lacks the basic understanding how the car market works.

Seems to me like you're simply venting due to your own poor choices, and placing the blame elsewhere.

1BadCadSTS
11-21-12, 09:57 AM
^winner!


Pay to play op. Now go by a Honda.

longslim
11-21-12, 04:52 PM
----------

[/COLOR]Purchase Toyota Avalon 2011 on May 1 2011 paid 33650 OTD or 30345 for car. I hate the car but wife said she really like it so you know how that went. Fast forward and I see the new XTS and CUE on a blog I really like the look. SoI took her to dealership she loved it also so we purchased on 9/5/2012. I had 22k miles on the Avalon and we got $22400 for the Car. Most source said they where going for 27k (kkb, black book) and on most dealers lots. Matter of fact the dealer is trying to get $27600 for it but no luck so far. I'm just saying what dealer are offering on a trade in is at least 20% below there retail selling price. So your $43 offer seem about right for the dealer to make an acceptable profit on the deal. He will try to retail it at $48/$49k.

CAPT Mike
11-21-12, 05:15 PM
It is obvious that most people on this forum are well aware of trade values of cars as well as decent purchase prices. The internet changed the car buying experience tremendously. The gentleman who started this string was clearly in a state that anyone would be in if facing a layoff with bills and family obligations and the holidays coming up. My specialty is not psych, but he was lashing out at the nearest inanimate object, the XTS. I am certain that he knows all the "pointers" that have been projected on this string. In the spirit of hope and thankfulness during this season, I trust that he will find another position soon and be able to maintain his obligations, provide for his family, and even perhaps, keep the XTS. In the Navy when someone would be embarking on orders or retirement, beginning a new chapter in their lives, we would say to that person, "May you have fair winds and following seas." May it be so for "Period".

b4z
11-21-12, 06:34 PM
I special ordered a 1983 Z28 in march 1983. Took delivery July 1983 with discounts it was 11,678.48.
At the end of October 1983 I was tired of making $4 an hour and took it to my selling dealer for Him to buy it outright. Offer was $10,000. Took it to another dealer. Offer was $10,500. For a z28 with almost no options and 6,000 miles on it. About 10 percent off of purchase price.
I think today it is about 30 percent.
Expect a 1 year old former Caddy rental car to be about 50 percent off list.

----------

I special ordered a 1983 Z28 in march 1983. Took delivery July 1983 with discounts it was 11,678.48.
At the end of October 1983 I was tired of making $4 an hour and took it to my selling dealer for Him to buy it outright. Offer was $10,000. Took it to another dealer. Offer was $10,500. For a z28 with almost no options and 6,000 miles on it. About 10 percent off of purchase price.
I think today it is about 30 percent.
Expect a 1 year old former Caddy rental car to be about 50 percent off list.

carter's_sts
11-21-12, 08:29 PM
All my stories would be about being on the buying end. I totally get wanting a brand new car, but I like to buy used to let someone else depreciate it for me. Always low miles and in very good shape though.

truckinman
11-22-12, 11:20 AM
Besides Lexus/Toyota and Honda/Acura, there aren't many brands. Luxury or otherwise, that won't significantly drop in value the second it's driven off the lot. That's why I don't buy brand new anymore. Bought a brand new 06 jeep in 05 for 32 grand. Just outa curiosity, a few months later I checked on it's current value. 23k. Lol. And jeep wranglers actually hold their value quite well.

cadillac00
11-22-12, 06:35 PM
I'll buy your xts from you if you want PM me

Caddy Chris
11-29-12, 02:19 PM
That is a shame. If you don't have money in the bank don't spend so much on a car. I can write a check for a new Cadillac andI always buy demos or loaners. The dealer generally discounts $8,000 to $9,000 off msrp. The car has 4 to 5 thousand miles on it and is still a new car not having been registered. Cadillac resale value is obviously not great except the SRX it seems to hold up well. Still this does not help you now but again if a lay off causes you to not be able to afford your car you over spent. It is not Cadillac's fault.

nguyennhatquang
11-29-12, 09:03 PM
IMO...i think blaming a car for lost value is not fair...

i think car only beck mark for reliable...Handling..performance..technology....ex ....

Especially Luxury car...it lost a lot of value compare with regular car..
1st : It cost a lot to maintenance...so mostly people doesn't want to pay for it..or can not afford it..
2nd : Wealthy people doesn't want used car..when they can afford new.

i think used luxury car market only for people who love car like an hobby..but can't afford new one... but those people is rare..

i'm sorry to hear u got lay off..but..it is not fair to say that.[COLOR="Silver"]

TheLegend
12-17-12, 09:30 PM
This is why I don't buy luxury cars brand new. You lose to much money in the first year, and the 2nd year to. This is why I buy a year & a half, to 2 years old. After two years, you don't get that big drop off in value. I never buy a luxury car brand new. Just not the way to go IMO.