: pre-cert 06 or new '07?
12-10-06, 08:02 AM
I am currently driving a 2002 Seville, with nearly 88K miles. Very nice car, but I have had a lot of repairs covered by an extended warranty that ended last month. I would like to get into a SUV or crossover.
I am sticking with Cadillac, since I have great service from my dealership for the last 3 cars. My service lady told me that the best approach is to return to a pre-certified used car, in this case the SRX, with the long 100K warranty.That would mean a 2006 model, as I doubt that any used '07s are around yet! My salesman believes I should consider a 07 high mileage lease. (I drive about 22K per year). I am leaning toward the lease, as I was rear ended in the Seville, and that harmed the resale value of the car, so much so that I am still probably "upside down" on the amount I owe under the 60 months zero financing deal. I figure if I get hit again, I won't take the risk of losing value with the leased car as long as it is repaired.
Any thoughts? I am in no hurry to buy, however the N* is starting to make the same clacking noises when cold (sounds like a diesel) it did a few years back that led to a fairly large repair. I want to get ahead of any potential large repairs. I saw both interiors of the 06 and 07, and don't have a strong preference either way. I drove both the 06 and 07 for a short time, and am scheduled to drive both for longer periods later this week. Needless to say the SRX is quite a bit different than the Seville.
12-10-06, 09:44 AM
If the interior doesn't make a difference to you, a CPO '06 would be a darned sight cheaper than a lease for an '07 - 1st year depreciation on these things is killer but it settles down a bit thereafter. Look to e-bay for the (low end) of what to expect for an '06 (keep in mind, though, that a lot of these aren't Certified Pre-Owned).
12-10-06, 10:27 AM
there is some lease specials coming in a few day that would make the 07 SRX look better.
Welcome, Bill! :welcome:
I think you're smart to be considering both options. Like Scott says, wait and see what the 07 lease incentives will be. Also, talk to some dealers with some CPO 06 SRXs in stock and see if there are any current (or soon) 2.9% GMAC CPO financing specials. Your salesperson probably doesn't have any CPO units in stock, so he's pushing for the lease. Study the lease figures carefully, because costs can escalate rapidly when you go above 15K a year. Good luck with whatever you decide.
At 22K a year, I suspect a lease is not the way to go (plus the fact that you kept your current Seville to 88K miles means you don't feel like you need a new car every 2-3years...) Our present CPO 2001 SLS was the best car deal I have ever gotten. For business purposes, I did really need to lease my 2006 SRX though. At the end of the lease, I may turn that into a CPO and buy it to replace my wife's SLS which goes out of warrantee July, 2007.
12-10-06, 01:56 PM
Thanks for the great input. Just some quick responses. My dealer doesn't have any certified 06's currently, but he said that stock changes often, and they can start looking for some if that is how I want to proceed. They have 4 SRX '06 demos currently, and I believe they want to get those off the lot. while one of those may be an option, the GMAC warranty extension that is available on new cars is apparently not as comprehensive, which is why my service department lady urged me to go certified. Interesting, she and her shop foreman also indicated that the Escalade had a good repair record. Which sort of implied that the SRX had it share of problems in comparison. I would consider a CPO Escalade except for the fact that gas could go back north of $3 per gallon, and I think those trucks get about 16mpg.
I didn't think the high miles that I drive would work well for a lease either, but my salesman has indicated otherwise. We just have to run the numbers there, to compare it to a certified '06. given what I want on the vehicle, I think the certified '06 would be in the mid 30's, and I can run the numbers on that loan amount vs. a lease.
Thanks very much for the tip on looking at the leases later in the week. From what I recall, the CPO financing was about 5.9% for 60 months, less than that for shorter loans. While I would be more than happy to keep the Seville, the risk of large repair bills has motivated my search. My normal ownership pattern is ~4 years before making a change.
Again, many thanks for the thoughts. I appreciate it.
I am not sure if you realize that absolutely any preowned cadillac still under the orig 4/50 warrantee purchased from your cadillac dealer can be "certified" by your dealer at a cost of around $1500.00. So if they have a preowned that you want, just have them certify it. I do not , however, think the demos can be certified b/c they are not really preowned.... If you knew all this, sorry for the waste of space....
12-11-06, 07:47 PM
Thanks, yes, I knew that since another dealer has offered that option in the past. My current dealer, Lindsay Cadillac in Alexandria VA, seems to certify all their cars, based on their window stickers. There are also some 06 SRX's for sale by non Caddy dealers at pretty attractive prices locally, and I know that I could purchase an extended GMAC warranty, but it sounds like they must give my service lady a hard time approving repairs, at least based on what happened during the extension on my Seville. That warranty paid for itself several times over. Plus on a CPO Concours that I owned in the past, that warranty paid for a new N* engine. I am a great believer in those warranty extensions given my history.
12-17-06, 07:08 PM
Just a followup to my original post. Carmax will only give me $5K for my Seville, so it appears I will be "lurking" for 6-12 months at these forums, since I am still "upside down". Carmax indicated the culprit is the dealer installed (as opposed to factory installed) sunroof, which harmed the value. Their offer was about $3+K less than the online blue book values for trade in purposes. Oh well....