Who did you use for financing? I regret going with TFS

First Financial Bank, Lawrenceville, IL.

 

This right here times a bajillion!

 

I financed through ATB Financial. They offered 96 months at same rate Toyota Financial offered for 84.

Got my payments a bit lower to where I wanted them.

 

I'm financed with TFS, and have a very low rate, but can probably get even lower with a credit union, which I should really check into. I pay double payments and pay early, and have never had a problem so far with TFS. Wish I could say the same about the truck!

 

Before buying a vehicle, always get pre-approved with your bank. Once pre-approved with a rate. That can be your negotiating power with TFS. TFS will try to beat your bank's rates and then your bank will try to beat TFS rates until you got the lowest rate possible. If you have good credit, they will fight for your business. Also have at least 20% or more down.

You can get a better deal on the vehicle if you fianced with the dealer. I have bought 2 brand new Tacomas at invoice at 2% twice!

I have financed with TFS twice. They are ok, just make sure you pay a few days early, not on the due date. I also do not make minimum payments, I do double or triple payments once or twice a month. If you can pay $1,000 on your first payment.. Your next payment would be dued several months later but you keep making fat payments to pay off vehicle ASAP but keep some $$$ in your pocket. There is no penalty for paying off car early. You build credit either way.

If you took 5 years to pay off your car, think about how much you paid for the car after interest vs 2 years.

I think TFS is ok, I would do business with them again to get the best deal on a new car. I had a problem once or twice but I call customer service and they took care of it and charge me no extra fees.

 

2% holdback on the sale and 1% hold back on TFS finance. I got into both on both of my TM TFS vehicles...

 

I got 1.49%, so I doubt the dealer can beat that. I am willing to go with their in-house financing if they drop the principal

 

when we buy Toyota's if they offer 0% we take it from Toyota financial, otherwise we find other financing options.

 

Capitol One for me. Would not use TFS. Love the Taco but dealing
with Toyota Corporate is a joke, can't imagine they're financing is any better.

 

I put down 1/2 cash on my 2016. I got a rate at BOA @ 2%. When Toyota quoted me they were around 5% and they argued with me that I didn't have a lower rate. Credit score is > 800.

I like the BOA loan as I can both see the loan when I log into my banking and set up a recurring monthly payment. Zero worries and EZ.

 

I've got cash for mine, but thinking of 20-25K down and whatever the cheapest 24-36 month financing is for the rest. I don't know- not decided yet. Truck won't arrive until July...

 

Just an update, I called Toyota Financial Services for the 2nd time asking where my extra payment was. This time the person was very nice, put me on hold for 5 minutes, came back and apologized and said it would be expedited to me. A week and a half later, still nothing in the mail.

 

USAA. Decide what you want, go on their site and build your truck. They will give you an amount they will finance it for. Go to the dealer, say this is what I want, and this is what I will pay. Dealer goes on line to USAA site, you sign, get keys and leave (they had the truck I wanted there on site). They also set my insurance up at same time. Have always bought cars like this. Got mine on 36 months but will pay it off sooner. So if your retired or active, I recommend it.

 

I used TFS for the last vehicle - no issues - 1.9% APR. Title showed up about 2 weeks after the last payment.

The current rig was financed through my credit union which already worked closely with the dealer so it was very smooth - 1.6% APR FTW. I have auto-pay set up for a few dollars over the minimum payment so I end up making only 58 payments instead of 60.

 

A lot of bad advice (EDIT: was "advise") on this thread about auto loans.

I'd like to clarify something for everyone:

Auto loans are amortized just like a mortgage is and the interest owed is front-loaded in the early payments. So, a large percentage (almost all) of your set monthly payment amount will be for paying off interest. Later, as time goes by this percentage will drop and you'll start paying off the principal. By halfway through the loan payback you'll be about 1/2 principal and 1/2 interest.

So, my point is changing auto loans will really impact you as you'll have a new loan with about the same payback you started with and have lost all you'd been paying in payments. The OP should think carefully about the true cost you'll be paying by switching your loan from Toyota finance to a credit union.

Of course, sometimes a better interest rate can offset these losses and make it a better deal. Obviously each refinance needs to be carefully calculated out to determine what's best. Also, there may be new loan origination fees as well to consider.

 

No shame in that. We all have had to make a bad deal work.

In my early 20's I used some of my student loan money to buy my first Toyota truck (1988). Turns out my student loans had an 8.25% percentage rate Federally locked in and unable to refinance. So, effectively I had an 8.25% car loan. Oh, and I owed about $65k by the end of my college eduction. An expensive lesson for a guy that didn't understand compounding interest until AFTER my college education. Anyway, it happens. We move on.

But whenever I can help others understand some of this stuff before they make a potentially expensive decision I try to, after all the finance advisors at these lenders don't spell it out for you. They are really loan salesmen after all.

 

Lot of bad spelling too

Advice
Definition:
a proposal for an appropriate course of action.
Examples:
Please give us some advice about planning a trip to Rome.

Advise
Definition:
give advice to; offer a suggestion.
Examples:
I advised him that the rent was due.

 

True, though if you refinance within the first few months not too big of a deal. If you refinance say year 2 and not a major improvement in interest rate, might not be worth it. TFS was not offering very competitive rates compared to what some of the Dept of Defense and military affiliated financial institutions were offering. However you get a $500 rebate on the truck if financing with TFS if you are military and also you have more negotiating power with dealer if they know you plan to negotiate through them... usually they make a bit more profit on the deal. You can finance with them, save the money on the deal up front, then refinance shortly after to save 1 to 2% on the interest, it is likely worth it.

 

I don't use TFS just because if I decide to sell the vehicle, the new owner can go to my local credit union and pay the loan off and get the title right then.

I bought a used Corolla a couple of years ago and it was a hassle because the owner had financed the car through TFS.

I had to send TFS a certified check from my credit union which they didn't want to do. If he had it financed locally I could have got the title at the time of paying off his loan with no problems.

Plus my credit union usually has great rates.

Edit: Plus you have to figure out the payoff by adding it the days waiting for the certified check to get to TFS.

 

Something to keep in mind: if you qualify for one of the rebates that require you to be financed through TFS (like the $500 military one, for example) - make sure you do the math and compare. In some cases, even if you have say 1.49% with your credit union, even a 2.99% might actually save you cash money in the end, due to the $500 credit in down payment upfront. It is weird to realize...since you pay slightly more interest on the loan, but in terms of cash actually paid out for the truck, the rebate ends up saving you money.