Toyota financial latest interest rates...

Just curious if anyone has applied for a loan through Toyota financial in the last couple months and what did they give you for an interest rate? And what was your fico score to get that rate?

 

Toyota and Lexus are offering 0% on most of their vehicles..

 

If I recall, you will need 690 minimum score to qualify for the 0% APR. Not guaranteed however, up to individual dealerships ...

720+ gets you 0% for sure

 

I just got a certified pre-owned Tacoma and picked it up last night. I got 1.9% for 72 months. My credit score is above 750.

 

The cost of credit is never free...if 0% is gonna get you to buy a vehicle then your gonna pay more for it. In other words the cost to service the loan is included in the sales price of the vehicle.

 

Could you provide evidence of this? Toyota ran their 0% for 60 months through May to help boost sales. Toyota didn't change their MSRPs and people were still negotiating over 10% off MSRP. Sometimes it's just about moving inventory and Toyota did a very good job of moving their Tacomas in May with this incentive.
Now if you're saying I could have negotiated an extra $500 off in lieu of 0%, but to pay an extra $6,000 over a 5 year loan..then technically you're right. But I think I'll take paying a few hundred more upfront to save a few thousand long term. BTW, those were just made up random numbers, but you get the point.
The dealerships get incentives for total number of vehicles moved and I believe they get incentives back from Toyota for each loan through Toyota financial, even if it's at 0%.

 

Up in Canada we have some very good lease rates on the Tacoma right now. 2.99% on 3 year leases. If you're willing to put security deposits down this goes even lower, to as low as 1.5%. On a lease with high residual it's awsome.

60 month finance is 1.99%.

 

Can't use Toyota, but can use Ford as an example.
Auto Nation Ford was offering 2019 Mustang base models with ecoboosts for ~$20,900. When you looked at the specifics of the deal, Ford was offering a bunch of factory to dealer incentives, factory to buyer incentives and then the dealers mark down as part of the deal. Dealers markdown off of MSRP was ~$4000.
However, Ford was also offering 0% financing for 72 mo's.
When I contacted the dealership I was told it was either one or the other. In other words, I had to choose. Either I got the low price for either cash, or with whatever the lowest rate was that I could find doing financing, or get the dealer markdown only and pay ~$25,000 for the vehicle and get the 0%.
No such thing as a free meal.
Dealers wouldn't budge, even with trying to get them to come down further in price for the 0% financing pitting one dealer against another.

 

I think you're confusing yourself with this, it appears you're describing two different incentives, in which you can only choose one. This is fairly common and similar to what Toyota ran.
Your Ford Example:
Option 1: Take a $4,100 rebate so the price is $20,900
Option 2: Take the 0% for 72 months

Toyota:
Option 1: Take a $1,750 rebate
Option 2: Take the 0% for 60 months

With either, the cash rebate would be off the MSRP/negotiated price of the vehicle. This doesn't mean that's the final price, it's just an additional rebate off the final negotiated price. Basically what it appears as if you're saying is that no Ford dealership would budge off the MSRP of $25,000. Therefore the rebate would be the only option if you didn't want to pay full sticker price. This doesn't mean the 0% financing incentive is causing this.
There are times when you may not be able to negotiate the MSRP because a vehicle is a limited run, in short supply or maybe the dealer is just greedy. That doesn't mean it's the 0% financing that is causing the dealership to not budge on price. Overall the blanket statement that to get 0% financing you pay more for the vehicle is false. There are plenty of Tacoma buyers who purchased in late April/May and got well below MSRP and 0%.

 

My Taco was also a CPO and I got 1.9% for up to 72 months, my credit hovers in the 780s, I got antsy about it and paid it off before the first payment though

But FWIW the finance manager said they were ending a lot of the promotions soon at least in the Austin area since supply was so limited.

 

The MSRP is a figure created out of thin air...no need to lower it as its padded more than 30%. All sales gimmicks are factored into that figure. Just like US currency a form of private credit backed by labor when you sign your pay check every week you are effectively endorsing private credit and bonding the money supply so when the value of the dollar goes down the cost of goods go up but your pay stays the same. In other words the consumer of the product doesn’t matter what it is always pays for it.

 

For your reading pleasure. Here is an article from Jalopnik that explains further on 0%.
https://jalopnik.com/once-again-dave-ramsey-is-wrong-about-financing-a-car-1844328020/amp

Sure the MSRP is padded, that’s how a brand makes money. You obviously need to sell something for more than it costs to make and sell it. It’s definitely not out of thin air though, you couldn’t survive as long as Toyoda/Toyota has if you just made up MSRPs.
I feel like I’m responding to that idiot Dave Ramsey himself.

 

Not exactly. The sticker MSRP on the base model Ecoboost Mustang for the vehicles they had on their lots was around $29,900-31,000 depending on some minor options.
Ford was offering factory to buyer incentives of ~$5000 bringing the price down to about $24-25,000. The dealer was offering their own "discount" to bring the final price to ~$20,900.
So, like your example for Toyota, you loose the $5000 rebates and are looking at negotiating off of a sticker of ~$30K, which the dealer already stated in their ad would drop the price to ~$24-25K.
Then you would pay either cash at that price or get the 0% financing.
If you wanted all the rebates, then you couldn't have 0% and paid interest.
So in the long run you still pay the same with interest.

 

Eh not really. The price is negotiated and the loan is not included in the price. You can negotiate a price then pay cash, it’s the same price as the 0%

Certain cars get better rates so they can move them. That’s why some cars are 0% and others 2.9 and so on.

 

Damn thats a deal! We just bought a 2017 and got 3% for 72 months, and i thought we did good. Our credit scores are well above 750 as well.

 

6 years, finance, 1.99%, 799 credit score, Canada, 2020 Trd off road

 

pre-owned and new aren't the same when financing. You'll never get 0 percent on a used car

 

I know preowned and new aren't same. I was simply stating that at the dealership I bought from they were offering the same interest rate right now on certified preowned Tacoma and Corolla models that was being offered on new.

 

My mom purchased a CPO Rav4 a week or two ago. She got 0% I'm sure her credit score is around 750-800.

 

Price...terms...supply...demand. It's a balance of those facets thereof.

Ed