Traditional financing is an installment sale transaction between you and your dealer whereby you agree to pay the amount financed, plus an agreed upon finance charge, over a period of time.

Generally, if you plan to drive your vehicle for more than just a few years, you consistently drive well over 15,000 miles per year, you subject your vehicles to rough treatment, you plan to alter the vehicle's appearance, or you feel more comfortable with the idea of owning a vehicle, traditional financing is probably a better option for you.

Leasing is a financing option that lets you pay for the portion of a vehicle you expect to use over a specified term, plus a rent charge, taxes and fees. For example: you might want a $40,000 vehicle. And that vehicle might be worth about $22,000 at the end of your lease (residual value). If you purchase the vehicle using traditional financing, your monthly payments will be based on the entire $40,000 value of the vehicle, plus a finance charge, and you will own the vehicle at the end of your financing term. However, if you lease the same vehicle, your monthly payments will be based on the amount of the vehicle you expect to "use up" over the lease term, plus a rent charge, taxes and fees. This value ($18,000 in our example) is the difference between the original cost ($40,000) and the estimated value at lease end ($22,000). With leasing, you can get affordable monthly payments, a new vehicle more often, more vehicle for the money, and no resale or trade-in hassles. Keep in mind, with leasing you do not own the vehicle, you return it to your dealer at lease end unless you choose to exercise the purchase option as defined in your lease agreement.

GMAC traditional financing is conveniently available right at your Cadillac Dealer. Most banks, credit unions, and automotive financing companies also offer traditional financing.