Does Credit Impact my Leasing Options?

Ready to get into a new vehicle? While you and your existing car may be saying it’s time to upgrade, that doesn’t mean that your credit score is ready too.

While credit can affect your ability to secure a Cadillac XT5 lease, that doesn’t mean that it isn’t possibility. There are lots of options for you at Zeigler Cadillac of Lincolnwood.

Does Credit Matter?

In short, yes. Credit certainly does affect securing an auto loan or lease. The biggest factor that your credit score will affect is your interest rate.

Your interest rate is the direct fee you pay to your lending institution. With a lower credit score, you’re more likely to get a higher interest rate, which means your monthly payments will be higher and you’ll pay more over the length of the loan.

What if It’s Too Much?

If you aren’t approved for the vehicle you are eyeing, or find that your payments are too much, you have multiple options. You might consider a more affordable model or even one of our pre-owned Cadillacs.

You can also make a larger down payment or trade-in your existing vehicle to help you have less to finance. If you aren’t approved due to your credit score, you could also consider adding a co-signer with a better credit score to your lease.

What are the Benefits of Leasing?

When you are looking at getting into a new vehicle, deciding between Cadillac financing and leasing is strictly a matter of preference. Leasing allows you to get into a vehicle more affordably.

Plus, you can avoid the hassle of having to sell your car down the road. You can simply opt to return it to the dealership at the end of your lease.

Is it Better to Buy?

Buying is better if you are interested in living without a car payment one day. By buying a vehicle, you also can avoid the restrictions that may come with leasing. Leased vehicles have mileage caps.

Also, you can’t customize them. So, if you’re interested in adding aftermarket parts or need to do a lot of driving, buying would be your better route.

Still have questions? Visit our Cadillac dealership in Lincolnwood, IL. We’re happy to help!