dknn

Very interesting concept and something I would look at it in the future. I like the flexibility and that these are Platinum series. My Tesla car payment is roughly the same, not including the additional insurance premium

I also don't see how this has anything to do with Lincoln Black label aside from the trim level.

blacksc400

iTrader: (4)

Ahh why it's Cadi offers this?! Imagine if BMW and MB do this I will be all over to it! Even it's more than 1500! I would like a s65 for daily, AMG GT for weekend or GLS63 for long trips!!!!!

geko29

I've got to assume a program like that would be more like $4,000-$5,000 a month, given the $200k+ upfront cost of all the top-end AMG vehicles and the steep depreciation curve. Accounting for taxes, that'd mean the first $85k or so of your salary would be going towards car rentals.

Toys4RJill

bitkahuna

iTrader: (20)

ha. it's all relative. as a mortgage gets paid down, for many the payment becomes less and less significant of course. some people think nothing of spending a fortune on a boat, which has often been described as a 'hole in the water into which to pour money'

and leasing isn't for everyone, but i think i may lease next time. i just don't want to keep vehicles a long time any more. and there's no guaranteeing depreciation rates for any vehicle even in the 'out' years, either way, cars lose money.

SW17LS

Exactly, its all relative.

Toys4RJill

As the mortgage gets paid down, the payment pays the principle and not the interest. Then once its paid off, you have an asset on a piece of land that goes up in value. What does the renter have? NOTHING. The renter will be paying monthly payments forever.

Similar for cars. Only thing is that the car does not appreciate. Constant payments, year after year. Own nothing.

The Cadillac idea is mildly a good idea in place of those who lease. Looks like it probably gets you locked into Cadillac which is good for them.

SW17LS

Not everybody cares about "owning" a car. I know I'm going to get a new car every 3-4 years, so I'm going to have payments forever anyways. Doesn't bother me.

pbm317

Would be interesting to see how long Cadillac expects an average member to stay in the program. Seems like it may just used as almost an extended test-drive/exposure type program to convert people to purchasing/leasing a Cadillac. Maybe they'd grant you a discount for the Book fees that you've incurred, almost like a rent-to-own.

Toys4RJill

I can see how it's designed to convert. But I can't imagine that there are that many people who want to make a $1500 car rent payment who have not figured out what they want to drive. This is just a simple streaming like service only for Cadillac. I assuming there is going to be some sort of mileage limit. I also wonder how the insurance is going to work. Kinda sucks that you will not get a car with zero miles. I could kinda see the under rich very high net worth folks doing this.

lexusrus

Most cars out there do not appreciate in value once you sign and drive off the lot. But a few rare ones will go up in value in short term right after you drive off the lot in certain markets. Even fewer will go up in value OVER TIME (but you must keep it in prestine condition for A LONG TIME).

OVERALL, I tend to agree with you. This fractional car ownership is not for everyone. For business purposes this might work. But for me Caddya will not work.

Ok. In the example of the piece of land paid off...... if you don't sell that piece of land and convert to a lump sum pile of cash for you to do whatever you want, then WHAT? So you sell the piece of land, then the income tax implications kicks in. Let's say you rent it out instead. And you are able to get $1500 a month for the rent. Now we are talking smart. ...... you can use that $1500 a month for that Caddy or whatever you like as long as the land is rented out. Income tax implications with the rental too.

All I'm saying is the Caddy program may not work for everyone.

Sulu

We have had this discussion before. Since a car does not appreciate in value, paying for it becomes an expense (money coming out of your assets) rather than an investment (money going to increase your assets). If you can pay for the entire cost of the car up front, you are merely pre-paying your expenses.

Sulu

Fractional car ownership is merely car-sharing by another name. Car-sharing does not seem to be particularly popular at the moment where I am (in the suburbs, with a family, where access to a car on a daily basis is a necessity) but it is popular enough to keep at least one provider in business in my area (zipcar). I believe that car-sharing -- and fractional ownership -- will become more popular if and when we get better access to alternate forms of commuting (such as transit, bicycles, motorcycles and inexpensive ride-sharing).

Toys4RJill

You have it wrong. If you have a car paid off, its considered an asset. (An asset that depreciates).

Fuel, lease payments, insurance, and repairs are expenses.

A car loan, is an liability.

It is true that a car that is owned will create expenses and future liabilities.

With a lease, you own nothing, your simply paying for an asset that you do not own. The car is someone elses assist.

There is almost no circumstance where I would advocate leasing a car in place of owning.

This new Book By Cadillac is an interesting alternative for those who lease. Not sure if it will succeed.

mmarshall

Jill is correct that paying off a car, in many cases, is considered an asset....it's almost always good not to be in debt, which can be very risky if you lose your job or are otherwise not able to keep up with payments (the Repo-Man Cometh). But I disagree that there there aren't any advantages to leasing. In fact, there are...at least under American tax laws (as opposed to Canadian), particularly if the car is used in business, and the payments can be deducted. In effect, the government is subsidizing at least part of the monthly payment.