Cadillac's newest and biggest vehicle might be a better deal than you think. In fact, our analysis finds that the redesigned 2021 Escalade can be as little as $10/month more expensive to lease than the outgoing model. That could be surprising for those looking to get the most for their money on a full-size luxury SUV.
Now that the 2021 Escalade is arriving at dealers, Cadillac's online payment estimator says you can lease a 2WD Luxury trim from $881 for 36 months with $7,080 due at signing. The offer is based on an MSRP of $77,490, 10,000 miles/year of driving, and translates to an effective cost of $1,078/month before taxes & fees.
Believe it or not, that's just $10 more than what the same website shows for the 2020 Escalade. If you look at the same trim, it's listed at $862 for 36 months with $7,429 at signing, which comes out to $1,068/month (screenshots of both are shown below). So why is there such a small difference in price?
According to data from dealer incentive bulletins, the 2020 Escalade listed above is eligible for a $3,250 lease incentive here in California and a rate equivalent to just above 0% APR. Meanwhile, the offer on the redesign features no such lease incentive and is based on a rate of around 5% APR. So what's the key difference?
Based on our analysis, the 2021 Escalade in this comparison has a much higher residual value of 65% compared to just 52% for the 2020 model. Residuals can be an important factor in determining whether a vehicle is good to lease. In this particular scenario, it appears opting for the redesign can have a major advantage.
There's also the fact that packaging for the 2021 model is a bit different in order to help bring the Escalade closer in line with the rest of the lineup. For example, Cadillac is no longer selling a "base" trim and the new Luxury model has a $4,600 advantage in MSRP compared to the previous year ($77,490 vs. $82,090).
That said, lease prices may vary based on real-world demand and availability. In addition, deals for buying the 2020 Escalade are a lot better with up to $9,500 in savings, one of the largest rebates on any SUV. As we've reported before, some Escalade owners may also qualify for substantial loyalty discounts.
Current offers end November 2.
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