FAQs About Financing

Financing FAQs for current and prospective Cadillac owners

At Shaheen Cadillac in Lansing, MI, we understand that our customers are astute financially and seek excellence in every facet of life, including their finances. To help add to your knowledge of the automotive financing process, here are some answers to a few of the questions we commonly hear from buyers in Grand Ledge and Jackson, MI. We hope this will help those who want Cadillac excellence as a part of their daily lives.

"Which is the better financing strategy: A loan or a lease?"

In our years of servicing our valuable customers in communities like Owosso and East Lansing, MI, we have seen that both options can work out well, depending on the unique objectives of each buyer. One obvious benefit of a car loan is that you're building equity in your Cadillac, unlike a lease which is usually like renting a vehicle. With a loan, you have the opportunity to someday own the car or use its cash value toward your next car.

The primary attraction of a lease is the ongoing benefit of monthly lease payments that are lower than car loan payments. If higher monthly cash flow is an important priority for you and your family, a lease can help you achieve that. In addition, a lease makes it easy when you're ready for a new vehicle at the end of your lease period. Simply drop off the leased vehicle with us, cover any lease-end charges and move into a new lease.

"How do interest rates work on a car loan?"

As you know, the interest rate you pay on a car loan is determined by several factors. Not surprisingly, buyers with high credit scores pay lower rates for their loan. According to an Experian report in 2020, the average interest rates for new-car loans for those with the highest credit scores turned out to be more than 10 percentage points lower than buyers with the lowest credit scores. That meant 14% interest at the high end vs. about 3% at the low end.

"Is lengthening the term of my loan the easiest way to pay less per month?"

For most people, that's probably true. After all, at the moment you apply for a loan, you can't really do anything about your credit score. But you can easily stretch out the length of your loan and the longer your loan term, the lower your monthly payments. That's the primary reason car loan terms have expanded from only 12-36 months out to a very prolonged 72 months or even 84 months, where the lowest monthly payments will be.

Do we recommend that you get a car loan term of something like 72 or 84 months? In general, we don't. After all, the average time people keep a car is 72 months. If your loan term is that long or longer, you will probably be disenchanted with your car when you're still making car payments. We believe that, for most people, it's wise to exercise the discipline of paying off a car loan sooner rather than later.

"What would my monthly payment be like?"

We invite buyers in nearby communities like Grand Ledge and Jackson, MI to use our online monthly Payment Calculator to see what your loan payments would be. Your monthly payment will be based on variables like the amount of your down payment and your interest rate.

"What if a recent rough patch has led to a bad credit score?"

At Shaheen Cadillac, we help people with a variety of credit histories, from great to bad to no credit whatsoever. At our Cadillac Finance Center, we offer "Guaranteed Financing," a variety of "Money Down" options and used car specials to help make the car you want more affordable. We know tough times can happen to anyone so talk to us soon for personalized financing help at Shaheen Cadillac, not far from Okemos MI in Lansing, MI.

Shaheen Cadillac 42.65993, -84.54531.