Everything You Need to Know About Cadillac Leases

November 16th, 2018 by

Do you want to get a luxury vehicle that’s dependable and stylish? Here’s everything you need to know about Cadillac leases so you can get your dream car!

Cadillac has always been known for luxury and innovation. There has been a standard of excellence since the company invented the first self-cranking engine in 1912.

Although it fell from the top spot in the 1980s, it’s made a comeback recently.

With the Cadillac being so dependable and stylish, it’s no wonder people now take second and third looks at the luxury automobile.

But not everyone has the budget space to buy one “brand new.”

Luckily, you can acquire a new Cadillac by leasing. Here’s what you need to know about Cadillac leases and how they can benefit you and your family.

More Bang for Your Buck

Many people lease Cadillac because they get more car for less money. That’s because monthly payments aren’t based on the full negotiated price.

Instead, payments are based on the car’s residual value. It’s a matter of adding depreciation to finance charges and sales tax.

A great lease deal is one with a low adjusted capitalized cost, a high possible residual value and a low finance or money factor.

Fewer Maintenance Costs

Most people lease new Cadillac’s, which means it is still under its new car warranty. So when you lease for 36 months or less, you’re entitled to the warranty for the full period.

The warranties keep the overall cost of maintenance and repairs down. Also, since it’s a new car, it’s less likely to have any problems.

All the Perks of Buying New

There is something magical about driving a new car. Since most leases are for new cars, leasing one means you always drive a “brand new” Cadillac with the latest technology and safety systems.

For many people, it’s appealing their Cadillac’s feature state-of-the-art infotainment technology and up-to-date security features.

Understand the Lease Contract

Before you make any decision, it’s important to understand the contract. Most Cadillac leases have terms lasting between two and four years.

Since every lease contract is different, learn about the specifics. This includes the length of the term and the mileage cap. Most companies cap the mileage at 12,000 to 15,000 miles each year.

Since contracts are confusing, let’s go over some common car lease terms.

Gross Capitalized Cost

The gross capitalized cost is the full asking price for the car. However, it’s negotiable and no car buyer should ever pay full price.

Adjusted Capitalized Cost

This is what the car costs after the negotiation, rebates, trade-in and down payments are included.

Residual Value

At the end of the lease term, your Cadillac still has residual value. The higher its value, the lower the depreciation. This results in lower monthly lease payments for you.


The value of your Cadillac diminishes over time. This depends on the numbers of months and miles you drive it.

Some simply consider this value as a “rental fee.” More formally, it’s taking the car’s adjusted capitalized cost and subtracting it from the residual value.

Money Factor

This is the interest rate charged to the sum of the adjusted capitalized cost and residual value. That’s because you pay for both the use of the Cadillac and the financing you borrowed to lease it. However, that interest rate is also negotiable.

Finance and Payment Options

Cadillac leases come with financing and payment options. Research lease specials and financing options before you visit Huber Cadillac. We also can help you do this.

Leasing a new Cadillac won’t be as easy without good credit. If that will be a problem, consider offering a higher down payment.

It’s also possible to lower the annual mileage on the lease. It’s a good idea to take steps to increase credit scores as well.

The higher the down payment, the lower your monthly payments. However, some experts recommend you put down as little as possible in case the car is wrecked shortly after you lease it.

If that happens, less money is lost from the initial investment.

Understand the Risks

As with every investment, Cadillac leases involve risks. It’s basically a rent that requires a service maintenance schedule. If these requirements aren’t met, extra fees are charged.

If there’s any wear-and-tear relating to damage, even minor cosmetic ones, it’s up to you, the lease holder, to fix them before you return the car.

There are also drive-off fees and charges for returning your leased car. The drive-off fee varies. You pay it up front, but it also includes your first month’s payment.

Don’t break the mileage caps. If you go past the agreed-to limits, there’s another fee. The penalties are usually $.10 to $.25 for each additional mile.

Always review the lease before you sign it. Ask us to explain if any additional fees could be charged.

What to Ask

It’s best to visit us at Huber with some prepared questions. That way, before any Cadillac lease is signed, we’re all on the same page. Here are several important topics:

  • Ask if GAP insurance is included. It serves as protection in case the car is stolen or totaled in an accident.
  • Find out what the warranties cover. Especially if there’s an extended warranty.
  • Find out what’s included. This makes it easier to know what maintenance services and repairs aren’t covered by the lease.
  • Always ask if it’s possible to transfer your lease. This way, if you ever need to terminate the contract, it’s possible to do so without problems.
  • Ask about the total cost. Lower monthly payments may seem great but might end up more expensive than buying your new Cadillac.

Contact Us

Huber is a family owned and operated company dedicated to all things Cadillac. Our expert team will show you all the options, features and operations of your new car.

We want you to become a long-term and satisfied customer. So whether you have a question or it’s time to lease a new car, contact us today to get started. For more info you can also check out our Car Lease FAQ.

Posted in Leasing