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The Best Used-Car Bargain Is A Cadillac CTS

Leasing has become a more popular option than ever for new car shoppers. As these cars are turned in, it’s creating a flood of bargains on the used-car market. However, there are a few vehicles in particular that represent some killer deals.

New research from iSeeCars.com compiled the 11 best used-car bargains on the market right now. The study at 5.8 million car sales to identify 2014 models with the highest-percent depreciation after three years, which makes for low prices on the used car lot.

And number one on the list is the 2014 Cadillac CTS. It topped all other cars as one of the most quickly-depreciating cars, but also a mad deal. The average selling price for a 2014 Cadillac CTS is just $27,537. In a bit of bad news, the car has depreciated 51.4 percent—not great news for current owners.

Number two is also familiar: the 2014 Cadillac ATS. After depreciating a whopping 50.4 percent, the average price for a three-year-old ATS is only $21,173. Mercedes-Benz, BMW and Ford make up most of the other 11 cars on the list.

2013 Cadillac ATS 2.0T AWD - GMA Garage 07

So, why do cars from Cadillac, Mercedes-Benz and BMW end up so cheap?

“Luxury brands are known for depreciating at a higher rate because they’re often leased to keep monthly payments down,” Phong Ly, CEO of iSeeCars.com said. “This helps create a constant influx of 3-year-old vehicles in the used car market, driving prices lower.”

Maybe a quick spin around the used-car lot isn’t such a bad idea after all.

Former GM Authority staff writer.

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Comments

  1. Good for used car buyers. Bad for Cadillac’s public image.

    Reply
    1. How so??? it’s a REALITY of luxury cars. The article even states “Mercedes-Benz, BMW and Ford make up most of the other 11 cars on the list.” Is it also bad for the image of BMW and Benz then?

      Good friend of mine recently bought a 2014 S550 4matic, the Benz Flagship, for a negotiated (originally priced $55K) for $52K with 43K on the odo. The original price of that model was $101K. Depreciation is a beast on luxo models.. no matter who

      Reply
      1. How so? All cars depreciate. Some cars depreciate faster than others. The real problem for Cadillac is to have their cars depreciate slower than they do now. Higher residuals means the car is worth more at the end of lease term, which means the value lost over the lease term is lower, which in turn leaves the (former) owner with more money having paid less money for each month of the lease.

        While it’s just as bad for BMW and MB to have lower residuals, they can absorb the relative loss of their products market value as banks will continue to issue lease contracts for cars that depreciate slower than others.

        Cadillac can’t afford that to have their cars seen as less likely to support a lease contract as their cars have habitually had poor residuals. Banks will still write up the lease contracts for the Cadillac, but the owner won’t like paying more each month on something that will be worth many thousands less than a comparable BMW or MB. That’ll stick in their mind long after the lease is over and will likely deter them from ever leasing a Cadillac ever again.

        Reply
        1. The real problem for cadillac is pricing themselves out of the market with their sedans. Cadillac was good at undercutting performance cars with the cts-v, but if I have 100k for a performance sedan I’m spending it on an AMG or Audi. If I have 45k, Im buying an Audi A6, not a CTS.

          Just look at the fact they are replacing the ats and cts with one model. If it werent for the SRX/XT5 Cadillac would be in major trouble.

          Escalade does well, but they better be careful with their pricing when all of these luxury SUVs are popping out of the woodwork.

          Reply
  2. So the rationale for such a huge depreciation percentage over three years, is that there is a glut of used Caddies??

    I don’t get it. Isn’t this a low volume vehicle product relative to other GM product? Low volume sellers generally imply the vehicles retain their value…unless they are a lemon in the first place.

    Reply
    1. Dealers must be leasing them to the people with wrong driveways 😉

      Reply
  3. Doing the math, this is about the break even price for a dealership because a 2017 Cadillac CTS has a base price of $46.000 and with a 3-year lease price of $449 a month; 3 years of payments would total $16,164 and if you add the $27,537, you get $43,701 meaning the dealership didn’t lose any money as this is about the same if the dealer gave the seller a zero interest loan to buy the Cadillac CTS.

    Reply
    1. Now a dealer that would give out a zero interest loan on a 3 year old CTS….. 😉

      Reply
  4. I returned my 2014 CTS luxury at the end of the 36 month lease, with 27,000 miles. Whoever gets the car will love it as much as I did. I miss it a lot, even driving my new 2017 C300 Sport.

    I thought of keeping it but the firs generation CUE system made me drop Cadillac after 3 excellent leases, I’m glad to hear it’s been improved and hope to be back with Cadillac for my next lease. Driving 2 Mercedes now, and the CTS was much better car than both of them!

    Reply

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