Should I finance with Toyota?

I did on the last two tacos we got.

They offered 0% so I took it and ran....
Plus a few k off sticker.
No up sell a or addons that cost extra.

 

I went with SE Toyota @ 1.9%. By going with the 1.9% it enabled me to buy 60K maintenance at a discounted rate through SE Toyota (which I negotiated into my deal). I was going to pay cash...but then that 60K maint. would cost near 2K. And, I can pay off at any time (past 90 days) and the maintenance plan remains.

Also, if you get GAP insurance (usually 500-100 dollars), it is mostly/fully refundable after about a year. Most dealers don't tell you this.

I know people in the dealership business...They say, "it's not cars we are selling, it's financing and service agreements..." And, "the service department pays the bills and keeps the lights burning...the profit is in financing..."

 

Jesus christ. I've never had that kind of luck at Toyota. I got 0.9% for 6yrs on my Subaru, no problem. Nothing ever close to that on any of the Tacomas I have purchased.

 

My gut feeling is that if you try to buy a Taco in an area where you have 3 dealers within 20-30 miles. They always will give a better price because of competition.

I'm lucky to live in the Suburban Area of Los Angeles, CA. There's like 10 toyota dealerships within a 2 hour drive.

 

^^^ Yes, this!

And it never hurts to walk in with a HELOC or other financing and just tell them you get a tax break for deducting your second mortgage so the rate better be damn near zero ... they are so not used to dealing with a sophisticated buyer it is fun to watch their jaws drop.

 

I'd check the local credit unions... I got 1.7% on my 2015 back in Feb. Toyota couldn't do any better than 4%, if I remember correctly.

 

It seems I had the opposite situation as most people here. Extremely high credit rating but my bank couldn't come close to matching the dealer rate. When I called the bank from the dealership they told me to take the Toyota financing, they didn't even try. I simply thought I'd call them, they'd beat it by a little, then I'd get Toyota to beat that.

And I've been using this bank for 15+ years now for all my stuff. Maybe my bank just sucks, my timing was off, or things just work different here north of the border.

 

Open an account at PenFed online 1.5% new car loans. They will cut a check before getting the VIN so you can go to the dealer with money. I normally pay cash but at 1.5% I will finance at least 10K for 36 months, maybe more

https://www.penfed.org/logoff/?reas=to

 

Is penfed open to all customers this month? Usually they want verified military relatives or work information

 

https://netmember2.penfed.org/NetMember/Forms/OpenAccounts/Eligibility.aspx?MEMBERSHIP

"Need another way to join? No problem! Members of the National Military Family Association and Voices for America's Troops are among those eligible for PenFed membership. We've made it easy for you to join one of these associations, which makes you eligible to join PenFed. (The non-refundable dues to join either association and thus become a PenFed member doesn't guarantee you will be approved for any requested account, loan, or service.)"

 

Toyota offered me 3.9% on my new 2015. When I called State Farm to get my insurance squared away, they said they could offer me 2.1%. When I countered Toyota's offer, they came back at me with 1.9% through Wells Fargo. Needless to say, it pays to shop around.

 

At first my truck was financed through toyota financial service. I refinanced through a local bank. I like being able to physically go to the bank and pay my loan, tell them principal payment only etc. With t.f.s, I read on here that you have to send a separate check labeled "principal only" to do that. Whether its true or not, Im much more comfortable having a loan be local, and be able to talk to the lien holder face to face.

 

2 hr drive in LA? So there are like 10 dealers within 5 miles? lol

 

I see. I didn't know. I have the platinum rewards card. Making 5% on gas.

 

Got this email a few hours ago

 

I have 1.49% 72 months for either new or used from my credit union

 

Not as good as Penfed

 

penfed 72 months is 2.74%. the 0.99% is for 36 months only

 

Pretty much haha. When I buy my truck I'm going to buy in 2 hours before closing time when the sales rep is tired and is either willing to sell low because he has sold alot of cars that day or desperate because he hasn't sold any haha.

 

Wow how sad.