I don't know many people who can pay cash for a car or truck. Most of us normal citizens will need to finance our purchase of a Toyota vehicle. There are a few ways to finance your Toyota purchase: Toyota financing, financing through your personal banking institution, personal loans from friends or family, and credit card. Now, I only recommend personal loans and credit card financing as a last resort; I strongly discourage any kind of credit card financing on purchasing a vehicle, but I had to list it as an option. The best options in financing are the first two.
Toyota Financial Services. This is the name of Toyota 's financing company. Toyota Financial Services (TFS), website www.toyotafinancial.com , will provide financing to any qualified credit customer on the purchase of any new Toyota vehicle or current through five-year-old Toyota Certified Used Vehicles sold through a Toyota dealership. Toyota Financial Services offers some excellent interest rates on their loans, from 24- to 72-month contract terms. In recent years, the lending rates have plummeted, thanks to a rather weak economy. In an effort to attract customers, car manufacturers became very aggressive with their financing terms. Toyota was no exception. And it's great because the customer wins.
Your monthly payment to pay back your loan will depend on:
- The vehicle you select
- Finance rate (APR)
- Length of finance term
- Amount of down payment
- Amount you finance
In order to get the low rates, you need to have approved credit. Toyota Financial Services will rate you on a Tier basis. In order to get the best lending rates on Toyota vehicles, you will need to qualify as a Tier 1 or Tier 2 credit customer. The Tier 1 and 2 credit customers are eligible for rates such as 1.9% APR and 3.9% APR, typically for 36-, 48-, or 60-month loans. These special rates vary between vehicles. Toyota Financial Services often offers special deals on certain vehicles, sometimes with $500 or $1000 cash-back incentives to qualified credit customers. Their current deals are usually listed on their Toyota purchasing website, www.buyatoyota.com . There are also dealership-specific financing deals, which you can find by inquiring at your local Toyota dealer.
The credit Tiers Toyota Financing Services assign to customers are determined by FICO score, credit history, etc. The best way to find out where you stand is to go to your local Toyota dealer and apply for a vehicle loan through Toyota Financial Services.
For those with a limited credit history, financing a vehicle can be a challenge. But Toyota Financial Services has a program designed especially for such customers. The iFinance program allows a credit-challenged customer to drive off in a new ECHO, Corolla, Matrix, or Tacoma , without a co-applicant. TPS also offers a College Graduate Finance Program , which gives a cash rebate and no money down/no payments for 90 days options to approved college graduates.
Personal Banking Institution. It is perfectly acceptable to finance your purchase of a Toyota through loans from your personal bank. Maybe, since you're their customer, they will offer you a better interest rate. Or maybe they have a special going on involving car loans. Either way, when considering the financing of your Toyota , you should certainly inquire at your banking institution to see what they can offer you.
