06-13-2015, 08:42 AM
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#11
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Moderator
Drives: 2018 Harley-Davidson Street Bob
Join Date: Nov 2007
Location: San Diego
Posts: 14,768
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Quote:
Originally Posted by 2010ABM
Cadillac, in an effort to increase the residual values of their vehicles, has cut back on major incentives. No longer will you see the $6k, $8k, $10, or like in December $12k off on CTS, ATS, etc..
For years, GM owners - particularly Cadillac owners - have been upset when they go to trade in their vehicles, only to find out that the value has dropped like a rock. Why don't they hold their value like other brands in the luxury segment - Audi, Lexus, Mercedes-Benz, etc.? The simple answer is that GM customers have been getting their monies up front in the form of a rebate or cash incentive, making the residual value less than that of one without consistent rebates. Why buy a used 2014 with 6000 miles on it for $45k when I can buy a brand new one with tons of rebates for $49k? This question is largely the reason you cannot expect a Cadillac to hold it's value strongly with large rebates.
That being said, Cadillac's new head honcho is trying to turn the game around. Will there be some rebates? Sure. Will there be tons of monies to discount them $8-10k off? No way. Inventory levels are being cut all across the US, meaning with less supply and a continuous demand, they don't have to generate the rebates to sell the cars. Our dealership hasn't had a 2014 model on the lot in over 2 months, and someone properly managing their inventory could be in the same position we are. It's not Cadillac that lost your business, it was the dealer you worked with who didn't assist you in taking advantage of the rebates before it was too late. Just my $.02.
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