Cadillac has been around for more than a century. And during that time, the name has become synonymous with luxury and prestige. It’s not for nothing that the saying, “the Cadillac of X” (i.e., sandalwood is the Cadillac of woods) became a thing because the brand has long been known for its superb styling and being in a class of its own. Because it is seen as an above-standard vehicle, you can expect above-average prices. But Cadillac lease deals could be a great option for getting behind the wheel of a brand new Caddy.
Cadillac has vehicles available in the sedan and crossover/SUV ranges. These aren’t your grandparents’ Cadillacs — although even in their time, the older Caddies were quite stylish and cool, and many are now considered classics. There may have been a brief period where they were regarded as an “old person’s” vehicle, especially with names like Seville, Fleetwood, and DeVille in the mix. Now, though, with the implementation of an “art and science” approach, Cadillac has risen among the ranks of luxury brands. Model names like XTS, XT4, and the uber-luxurious Escalade make you think a little differently about the brand than you used to.
Which is why Cadillac is more popular than ever. If you don’t think buying one would be an option, then maybe you should consider a lease.
The Payments are Cheaper
The top draw for choosing to lease in the first place is you’ll get lower payment options than if you bought a vehicle on a loan. The reason for this is most people who lease are either on a budget or want to, on average, drive newer vehicles. Or, sometimes it’s both.
Let’s do a quick comparison. If you were to buy a brand new 2020 XT6 (FWD Premium Luxury), you’re looking at a total MSRP of $54,315. Let’s say you put down $3,000 and you’re a well-qualified buyer looking for a 72-month term. You’re looking at about $713 per month on your payments (with 0% APR).
Now, if you were to lease a brand new 2020 XT6 (FWD Premium Luxury), things will look a little different. This will be based on well-qualified lessees. If you’re looking for a 48-month term (the highest available on the Cadillac website), with an annual mileage of 10,000/year, you’re looking at $574 per month on your payments (with 0.72% APR). That takes into account the same $3,000 down payment, although the first month of the lease ($574) will also be due, so you’ll pay $3,574 at signing. If you want additional mileage per year, 12,000/year will cost $585/month and 15,000/year will cost $618/month. Also, as you go down in length of months on the term, generally your price per month will go up.
Comparing a lease and a loan on the same vehicle, you’ll end up paying a lot more on the 72-month loan than the 48-month lease, and that’s doing the calculations over the same 48-month period. To be exact, the payments of the loan would come out to $34,224 over 48 months. The payments of the lease would come out to $27,552.
Of course, most leases also don’t even require a down payment, while you can expect many new purchases to have that requirement.
Stay Modern with a Lease
A big reason leases are so attractive is because you’re able to trade in your vehicle every few years or so and start a new lease on another vehicle. This means, your first lease can be for a brand new vehicle and then your next lease can be for a brand new vehicle, and so on and so forth. Basically, your vehicle will never be more than a few years old because you’ll always be switching to a newer model.
There are advantages to this other than just having a new and flashy car. With a brand new vehicle, you know there is virtually nothing wrong with it. You will be the first owner, so you don’t have to worry about accidents, titles, stains, or anything else.
Apart from stylistic changes or general convenience factors, many new models also come with increased safety features. For example, older models of the Escalade may not have come with front and rear park assist, forward collision alert, or lane change alert with side blind zone alert. Although safety is always a priority when it comes to driving, it can’t be helped that newer and better technology can only be integrated as it comes out. Which means, of course, the newer vehicles will always have newer features, for both convenience and safety.
Don’t Deal with the Hassle
While true ownership of a vehicle has a nice ring to it, worrying about all the little details isn’t the most fun. If you’re paying off a loan, the vehicle is effectively yours. That means you have to take care of it, especially apart from the regular maintenance. That might be fine for any major repairs in the first few years (while the vehicle is still under warranty), but what about after that point? Then, it’s money straight out of your pocket.
The nice thing about a lease is you don’t have to worry too much about anything major going wrong with your vehicle while you’re following the rules of your lease agreement. Most leases last from 36 to 48 months and most vehicle warranties will last about the same amount of time, usually between three and five years, or a certain number of miles (whichever comes first). Since factory warranties and leases typically last the same length of time, if the vehicle does need a major repair, it should be covered under the warranty.
One of the biggest benefits of going with a lease is you don’t have to worry about what to do with your vehicle when it’s time for a new one. Obviously, it’s super simple: just bring it back to the dealership and be on your way or start a new lease on another new vehicle. No worrying about how much your vehicle is worth at trade-in or the value of the car after depreciation. Also, no worrying about random people and their friends checking out the car and giving you an extremely low offer. With a lease, the hassle is gone.
Weigh the Pros and Cons
There are always pros and cons to any situation or decision, and the same applies to buying or leasing a vehicle. Each dealership will have its own terms, but you can basically expect similar practices across the board.
If you’re on a budget or you simply don’t like worrying about dealing with owning a vehicle, a lease could be just the thing for you. Much of the hassle of car ownership can be removed from the equation and your monthly payments will almost certainly be lower. Of course, your mileage will be capped, but whether that matters or not depends on each situation.