Once you have chosen the perfect new Cadillac model, the next step is securing financing that works for you. An important part of the Cadillac financing process is deciding on your loan term, which has an impact on both your monthly payment and the total cost of your vehicle. Understanding the difference between loan term lengths is key to maintaining your budget. Our finance team is here to help you decide on the right course.
Why Choose a Short-Term Loan?
A short-term automotive loan, typically around 36 to 60 months, is a way to save money and build equity quickly. Your monthly payments will be higher, but you will pay significantly less in total interest over the life of your loan. You’ll also own your Cadillac car outright much sooner, and you are less likely to encounter a situation where you are underwater (owe more than what the car is worth). If the monthly payment fits your budget, this is often the most financially advantageous option.
The Advantages of a Long-Term Loan
On the other hand, a long-term loan, often 72 months or more, is popular because it results in the lowest possible monthly payment. This can make a luxurious Cadillac model more accessible and help it fit into a tight monthly budget. Keep in mind that you will pay more in total interest over the longer duration of the loan, and you will build equity more slowly.
Choose the Right Cadillac Financing Plan for You in St. Augustine
The right choice depends on your financial priorities. Our finance team at Fields Cadillac St. Augustine can help you explore your options, so visit us today for personalized advice and drive home in a premier luxury vehicle!
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