Category Archives: Cadillac Models

Cadillac SRX continues to Please Buyers / Owners

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Regular Readers know I am a fan of the 2010 Cadillac SRX.  I had been fairly ho-hum on the new model, but after driving one on a weekend test drive I found it to be a terrific vehicle.  Terrific to the point that it is almost my favorite current Cadillac.  I am still a big fan of any V-Series model, then the CTS Sedan Premium Model, but the SRX is almost in a dead heat.  It is that good a Crossover.

Now, the previous model SRX, made from 2004-2009 was also a fine automobile.  It was based on the CTS Generation 1 Sigma chassis, RWD or AWD, and more of a tall station wagon type of vehicle.  It could seat 7, and is selling quite well in the used vehicle market.  So no complaints about the ‘original’, 1st generation SRX.  But the current SRX model is well thought out, capable, and refined.   It has a lot of personality, and it is clear when you spend some time in one why it has been a very popular seller — currently leading Cadillac sales for all models, as well as doing very well in its segment in general against all competitors.

2010 SRX Has Largest Gains In Sales And Residual Value In Segment

Sales up 493 percent, projected resale value up 17 percentage points

DETROIT – Since its debut last year, the all-new 2010 Cadillac SRX has posted the largest gains in its segment for both sales and projected resale value, establishing SRX as a leader among mid-size luxury crossovers.

SRX total U.S. sales through May have risen almost 500 percent, compared to the first five months of last year, outselling the Mercedes-Benz M-Class, Audi Q7, BMW X5 and Acura MDX. The average transaction price for the new SRX is more than $2,300 higher than the previous model.

Along with the sales and transaction price increases, SRX’s projected resale value has risen 17 percentage points in the past year, the largest gain in its segment. SRX’s projected resale value after 36 months is 48 percent of the initial purchase price, compared to 31 percent for the previous model, according to the May/June forecast by ALG, an industry benchmark for residual values and depreciation data.

“Cadillac has done all the right things to support higher residual values for the SRX,” said Matt Traylen, ALG’s Chief Economist. “The all new 2010 model is substantially improved, but was launched with a significantly reduced MSRP. This resulted in record low incentive spending for the SRX, lower reliance on fleet sales, a quicker turn time on dealer lots and ultimately a positive impact on brand value.”

The SRX has remained in high demand since its launch last summer, said Kurt McNeil, vice president of Cadillac sales. The 2010 SRX delivered bold design to the fast-growing mid-size luxury crossover segment, he said.

“Residual value is a key indicator of the strength of the new SRX,” McNeil said. “SRX has succeeded by offering distinctive styling, great handling and a host of features that help it stand out in the luxury crossover crowd.”

Offered in all-wheel and front-wheel drive versions, SRX comes standard with a 3.0L direct injected V-6 engine. It has an optional 2.8L turbocharged V-6. SRX’s available features include a cargo management system, pop-up navigation screen, adaptive forward lighting that swivels the headlamps in synch with vehicle steering, integrated hard drive for audio storage and pause-and-replay radio and a dual-screen system for rear entertainment.

2011 Cadillac CTS Summer Tires vs New All-Season Performance Tires

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One of the highlighted New Features for the 2011 Cadillac CTS Sedan is

  • (FE5) 19″ All-Season Tire Package
  • (Q2B) P245/45R19 all season blackwall tires. Included and only available in (FE5) 19″ All-Season Tire Package.

Let’s look at exactly what that entails.  It is intriguing that RPO code FE5 was selected, since this would suggest even higher performance.

FE5 NEW! 19″ (48.3 cm) All-Season Tire Package
1 – Requires (Y42) 18″ All-Season Tire Performance Package. Includes (KB7) steering wheel mounted Paddle Shift controls. (Q2B) P245/45R19 all-season blackwall tires replace (QKE) P235/50R18 V-rated all-season blackwall tires. (PJ2) 19″ x 8.5″ polished wheels replace either (P75) 18″ x 8″ aluminum wheels with premium multi-coat painted finish or (P63) 18″ x 8″ aluminum wheels with high-polished finish. Not available with (Y43) 19″ Summer Tire Performance Package, (MN6) 6-speed manual transmission, (W2E) Recaro performance seats or (SE4) LPO, 18″ chrome wheels.

So it is an option that pushes the 3.6L DI CTS to 19″ all weather tires, and 245/45 versus 235/50 stock tires.

Y43 Performance Package, 19″ (48.3 cm) Summer Tire, includes (T4F) HID headlamps, (KB7) steering wheel mounted paddle shift controls (MX0 6-speed automatic transmission only), (T3U) fog lamps, (PJ2) 19″ x 8.5″ polished wheels, (Q0M) P245/45ZR19 Y-rated performance summer tires, (V03) performance cooling system (MX0 6-speed automatic transmission RWD only), (FE3) sport performance suspension, (G80) limited slip differential and (J55) performance brakes
1 – Model 6DP69 only. Not available with (Y42) 18″ All-Season Tire Performance Package or (FE5) 19″ All-Season Tire Package (Model 6DP69 or 6DH69).

The Summer Tire package has 245/45 tires also, but includes other performance bits as well.  So the FE5 gives the cornering advantage of the 19″ wheels and all-weather benefit of all-season tires at the expense of the ultimate performance of the Performance Package Summer Setup.  In other words, the FE5 option is a good approach to performance if you want more sport but know you will be driving in weather.

Sighting the sweet spot in used car pricing

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Generally, cars depreciate.  Once you drive your new car off the new car lot, it becomes less desirable for me to buy from you versus buying the same car from the Dealer.    Another way to think of it is that your car’s resale value goes from the retail price you paid for it to the wholesale price you could resell it for.

After a few years, a car’s depreciation starts to level out.  My current 2005 Cadillac is depreciating at around $1.5K per year.  At some point depreciation basically stops, and occasionally a vehicle starts to appreciate in value.  For the most part however in most cases cars lose a lot of value in the first year or two, then lesser amounts until you are ready to sell/trade/move on to your next vehicle.

I’m setting my sights on grabbing up a 2008 Cadillac STS-V, or a 2010 Cadillac CTS Premium Model.  Honorable mention to a 2009 Cadillac CTS Premium Collection, but there is a minor detail that drives me to prefer the 2010 because of the way that the keyless ignition is implemented (button vs switch).

Edmund’s offers a true cost to own analysis.  What they suggest is that a 2010 Cadillac Premium has an initial cost (with no other options) of $46K.  In the first year of ownership it will depreciate around $10K.  Now, no one is going to post their 1 year old car for sale at a $10K decrease, but that would be our target for grabbing up a 1 year old 2010 CTS Premium.

2010 Cadillac CTS Year 1 Year 2 Year 3 Year 4 Year 5 5-yr Total
Depreciation $10,425 $4,887 $4,301 $3,814 $3,423 $26,850

and, to get to closer to $30K as a target, we would need to wait and get a 2-year old 2010 CTS Premium in 2011.

Now, considering the 2008 Cadillac STS-V is a little more tricky, as it can only be evaluated by Edmunds as a used car, so we only see the further down the slope values.  Edmunds estimates that the STS-V is currently worth around $40K.  It originally sold for $78K+. Some examples are creeping into the low 30s but some are in the 50s still, so keep in mind that their estimate is an average. I changed the year #s to tie out with the way that they are evaluating:

2008 Cadillac STS-V Year 3 Year 4 Year 5 Year 6 Year 7 Total
Depreciation $4,826 $4,232 $3,723 $3,302 $2,962 $19,045

So the 2008 STS-V is depreciating at around $4-5K per year.  So if there are 2008 STS-V’s available now for $35K then next year they might be in the $30K range.

Conclusion:  In another 6-12 months one could expect to grab up a 2009 CTS Premium Collection or 2008 STS-V in the high 20s / low 30s if you hunt for the lower edge of the market / find a bargain.  Wait a year and the 2010 Cadillac CTS Premium Model might slide into the right range.