Automotive Financing vs Leasing at Downtown Hyundai
At Downtown Hyundai, we know that purchasing a vehicle is a significant decision, and choosing between financing and leasing can feel overwhelming. Both options offer unique benefits depending on your lifestyle, budget, and driving habits. Our team is here to guide you through the process so you can make an informed decision that suits your needs. Continue reading along as our team here at Downtown Hyundai breaks down the key differences between financing and leasing a Hyundai vehicle.
Read our First Time Buyer’s Guide, here.
What is Financing?
Financing a vehicle means simply taking out a loan to purchase it outright. Once you’ve completed your loan payments, the vehicle is entirely yours. This option is ideal for those who plan to keep their car for an extended period.
Benefits of Financing
- Ownership: When you finance a Hyundai, you own it once the loan is paid off, giving you full control over its usage and resale.
- No Kilometres Limits: Unlike leasing, financing allows you to drive as much as you want without kilometre restrictions.
- Customization: With financing, you can modify your vehicle to suit your personal style and needs.
- Long-Term Value: Over time, financing is often more cost-effective if you plan to keep your car for many years.
What is Leasing?
Leasing a Hyundai allows you to drive a new vehicle for a set period, typically 24 to 48 months, with lower monthly payments compared to financing. At the end of the lease term, you can return the vehicle or choose to purchase it.
Benefits of Leasing
- Lower Monthly Payments: Lease payments are typically lower than financing payments, making it a budget-friendly option.
- Newer Models: Leasing allows you to drive the latest Hyundai models with advanced technology and features.
- Warranty Coverage: Most lease terms align with the manufacturer’s warranty, so you’re covered for repairs and maintenance.
- Flexibility: At the end of the lease, you have the option to upgrade to a newer model or purchase the leased vehicle.
Differences & Similarities in a Nutshell
| Features | Financing | Leasing |
| Ownership | Yes | No |
| Monthly Payments | Higher | Lower |
| Kilometre Limits | None | Yes |
| Customizability | No | Yes |
| Long-Term Costs | Lower | Higher |
| Drive the Latest Model | No | Yes |
Lease or Finance Your Next Vehicle at Downtown Hyundai
At Downtown Hyundai, we’re committed to helping you find the best financing or leasing option for your next Hyundai. Our finance team works with top lenders to secure competitive rates, while our leasing specialists ensure a hassle-free experience. We offer a wide range of Hyundai models, from fuel-efficient sedans like the Elantra to versatile SUVs like the Tucson and Santa Fe, we’ve got your covered. When you’re ready to finance or lease for your first or next vehicle, make sure to visit our state-of-the-art facility at 77 E Don Roadway in Toronto, Ontario.