Finance Centre

Understanding Credit

Auto Financing & Credit Information

Guelph Hyundai understands how large a commitment buying a car is. Most will agree it's second only to buying home. It's for this reason that we make it a priority to ensure that you understand the credit process every step of the way. No matter if it's a Lease, a Loan or a Cash Deal, we're here to help.

Leasing & Financing Processes

When a customer is interested in leasing or financing a vehicle, it is our duty to find the right vehicle for their needs. This includes matching the price of the vehicle to the clients income and financial means. Most of us can't afford to walk into a dealership and buy any car on the lot, so with this in mind part of our qualifying process is to inquire about your budget and credit history.

Once we feel we've found the right vehicle, and agreed on a price, a credit application will then be filled out and submitted to the banks. This will take place securely with our Finance Manager, who will gladly answer any questions or concerns you might have at this time.

Once the bank receives the application, they will review it, taking a number of things into consideration;

  • Income
  • Value of the chosen vehicle
  • Credit history and score

These factors and others will play a part in the banks decision of whether or not to approve the loan. If, for any reason the loan is denied then the bank will provide us with reasons as to why. Loans are denied for many reasons, some of the most common being;

  • Poor credit history
  • High debt ratio (not a lot of available credit)
  • Lack of employemnt

At this time we will review the application, taking into consideration what the bank reported, and decide if there is an alternative route, such as a different car or a longer term, etc. All is not lost just because a loan is denied. Our Financial Managers will discuss all possible options with you, and do everything they can to get you driving a new car.

On the other hand (and more common practice), when a loan is approved you are then the proud owner of a new car! The terms set out in the negotiation will apply to your new car loan, and with each passing payment made, a report will be sent to the credit beaurau to help maintain or increase your credit rating!


In the case of a finance (loan) you're required to pay the full balance plus any interest to complete the terms of the loan. Should you decide to sell or trade in your vehicle during the period of your loan, the balance owing must be paid first, before another loan can be granted. In most cases a dealership can "wrap" the balance into the new loan, but if you sell it privately, a lien is placed on the vehicle until the balance is paid in full.


When a lease is the desired method of payment, the lessee is only required to make monthly payments on a portion of the selling price, pre-determined by the manufacturer beforehand. The remainder of the price of the vehicle (the residual value) is an optional "buyout" at the end of the term agreed on. At the conclusion of the lease term, the lessee can either leave the vehicle (walk away), buy or lease another, or decide to keep the car, in which case they will make arrangements to pay out the residual value. This outstanding amount (residual cost) can again be financed as a loan, or paid in full. Leasing is a great option for drivers that switch cars every 3 or 4 years, in that it allows them to make lower monthly payments that they'd most likely be making anyhow. It's also a benefit for self employed individuals or those who receive car allowances, as it's a tax deductible write-off in most cases.

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Guelph Hyundai

765 Woodlawn Rd. W
Directions Guelph, ON N1K 1E9

  • Sales: 18883794136


  • Monday 9:00 am - 8:00 pm
  • Tuesday 9:00 am - 8:00 pm
  • Wednesday 9:00 am - 8:00 pm
  • Thursday 9:00 am - 8:00 pm
  • Friday 9:00 am - 6:00 pm
  • Saturday 9:00 am - 5:00 pm
  • Sunday Closed