Buying a vehicle in Canada can be arduous business if for no other reason than because of finding the best way of paying for it – for you. Paying off the vehicle right off the bat is the cleanest possible option, where you fork over the whole amount of money, take the car home with you and you are done thinking about it. However, rare is a person in Canada who can do it that way, Ontario natives included. For most of them, considering options such as borrowing money from the bank or some other lender is a harsh reality. Couple that with the fact that not everyone can afford a new car either, and you have a lot of things to consider here. Hence, let’s see what the car financing options in Ontario are.
There are 3 options for purchasing a car in Ontario:
1. Buying outright – Breaking your piggy bank to buy a car (if you have enough money to begin with) means that you will make a big investment upfront without worrying about consequential payments.
2. Financing – Getting a loan directly from a bank, dealership, or credit union to buy the full value of the car. You can negotiate the length of time required to pay off the loan, the interest rate and monthly payments. Moreover, when you finance a vehicle, you get full ownership over it. You can drive it however much you want with no restrictions or additional penalties to pay. You can also sell or trade in the vehicle before the loan is over and use the value to pay off the rest of it without extra payments.
3. Leasing – Entering into a contract with a dealership or leasing company that provides you with use of the car for a set period of time. In exchange, you have a set monthly lease payment for the duration of the lease and you are responsible for the insurance and maintenance. At the end of the lease, you can choose to buy the vehicle or return it to the dealer and then lease or buy a different one. There are restrictions on what you can do with the vehicle that come with extra cost penalties if you do not adhere to them (for example, there might be a limit on how many kilometers per year you can drive it). You also pay additional fees if you want to end the lease before it is finished.
As always, there are the good and bad sides of these options:
And if you decide buying a used vehicle is the best option for you (through either of these payment options), here are a few more things to consider:
- Research the dealer
- Be comfortable with your choice of vehicle
- Check the state of the vehicle
- Let a third party inspect the vehicle
- Ask about car history
- Check inside the car and under the hood
- Avoid pushy salesmen.
Always have in mind that the right salesperson will take care of your needs and financial capabilities when you come to purchase a car. That is the ONLY way we work here at CRS Automotive.
So visit our shop in Cambridge, ON today and let us find you the right vehicle and the best financing option for you!