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When to finance a car in Guelph instead of leasing

When to finance a car in Guelph instead of leasing


You’ve heard that the easiest way to get into a new car in Guelph is with a lease, but how can you know if that’s the right option for you?  Maybe financing a car is something you should look into as well.  It all depends on your situation, so let’s take a look.


Entering into a lease is a good and affordable way to get into the newest cars every few years, but it’s not for everyone.

A lease has lower monthly payments than a finance plan because they are most often offered to people with good credit.  That means if you have low or even no credit, you won’t qualify to lease that new 2022 SUV.

Leases also come with mileage limits, so if you’re someone who loves to go on road trips, or if your daily commute is longer than average, a lease won’t end up being to your benefit.  You’ll end up paying fees for going over the allowed kilometers when you go back to trade in.

When you lease a vehicle, the dealership holds onto ownership of that car for the entire term of the contract.  This can be beneficial when it comes to being under warranty for repairs, but not the best if when you bring the car back in at the end of the term and it’s got more than allowable wear and tear.  You’ll be subject to more fees.


Many dealerships can offer low and no credit financing to people in difficult situations.  When you get approved for a car loan and make your payments on time, you improve your credit and end up with opportunities for lower interest rates in the future.

Unlike leasing, when you finance your next vehicle, you get ownership transferred to you right away and as soon as your loan is paid off, the car is all yours!  If the plan is to drive this car for years to come, this is the best option.

Used cars are well-suited to financing as well, so if you don’t need the newest and shiniest tech in your ride, opting for a used vehicle can bring down the costs significantly.

Financing doesn’t have any additional restrictions on mileage or customization either.  If you want to drive across Canada every year, go for it!  Add on that tailfin if that’s what you’re into.  Bearing in mind the effects these things can have on resale value, of course.

Short-term, a lease is beneficial financially, but long-term it ends up being more costly than financing.  If you want to buy out your lease at the end of term, the low monthly payments mean you’ll have to shell out a large sum to claim ownership of the car.

If you think financing is right for you, apply online for pre-approval and take a look at the inventory we have at Car Nation Canada Direct.  Let us help you find the perfect car!


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    Categories: Auto Loan