Should I finance with Toyota?

PenFed is offering 1.5% on new auto..I opened an account when I was hunting for a C7 at GM supplier prices. (PenFed membership gets anyone GM Supplier pricing which is around 10% off MSRP). GM dealers don't HAVE to accept it but high Volume Vette dealers accepted and local dealers will accept it on most trucks and cars. IF I were going to buy a Canyon I would use GMSP and find a dealer that will accept it..

I may take advantage of that rate for the amount over my trade. 1.5% on $8000 is cheap money. I will go in pre approved or pay off the truck then refinance it if I find cheaper money than 1.5%. I don't think the Toyota dealership can beat that as Southeast Toyota is usually a rip. The Moran Family owns everything, Financing, Extended Service Contracts, none of it is Toyota sourced.

https://www.penfed.org/logoff/?reas=to&bridge=650

 

If you were that sketchy, then you were an ass and one of the reasons the majority of people hate dealerships. I believe that practice is also illegal now.

 

That is the rate my wife and I got on our new Subaru also from PenFed.

 

.9% with my local credit union

 

Not only would they bump the rate but they had something called the "penny roll" where they would round up the payment and "keep the change" One has to READ and UNDERSTAND every line item in the buyers cContract. I caught "extra profits" all over the place starting with the Doc Fee which I subtract when negotiating as I know they will add it as contact line item because they have to make it the same for everyone but they can deduct it from cap cost when negotiating. My Toyota dealer is not too bad at $349 The Ford/Mazda/Volvo dealership is $500 though,

 

Local rates are higher...because the avg Credit rating in SC is in the high sixes. Mine is over 800 but I cannot finance locally and get a deal.

 

Doesn't pay to use up cash at that rate, WOW...

 

Toyota originally offered me 5.2% and I told them to have a nice day. They called back offering 3.2% which I accepted because the price discounts I was getting mandated Toyota financing, and those discounts made up the difference in interest between USAA and Toyota and then some. Then after I signed the paperwork I got a letter from Toyota saying that I had been further dropped to 2.9%

Ford is offering 0% right now, so you can use that as leverage.

 

Dealerships make a flat on each loan they send to third party banks. Kind of like a referral fee. But they have the same rates you would if you walked into those banks off the street.

 

....I have belonged to a credit-union for 17 years.....and certainly intend to chat with them when the time comes, as well as my bank...which has helped me try to re-establish credit....

...But this is where it starts to get really ugly!...I have worked in digital visual-effects for the past 33 years...but that field is vanishing as work is going overseas to cheap labor...

....and I am basically a free-lancer.....so can often go for 6 months to a year between jobs...and all I have coming in on a steady basis is social-security....( told ya I was totally-screwed! )...

...I will have a fair amount of money soon...but at a great personal cost....my Dad is nearing 97-years old...and is in failing health...so every day for him is a gift at this point....

...But obviously, that is short-term...When he passes, I have his house to sell, and that will provide me with more than enuff money to buy a truck outright and save the hosing on monthly payment interest...

...( I don't mean that to sound flippant or cold....but he has had a very good, full life....and he has been deteriorating for the past 5-years...so we have come to expect it to end almost every day....)....
...But just paying it in full would not help to re-establish my credit.....so it is a damned-if-ya-do---damned-if-ya-don't situation.....( See?...dontcha feel better about your own finances now? )....

...Unlike a lot of you guys...my purpose for a taco 4x4 is more for business than pleasure....as I am also a Nature-photographer...and intend on developing ( no pun intended! )...this into an alternate business.....

...I plan to use the Taco-OR to get to lesser-seen scenic places to setup my equipment for more dramatic and visually-appealing videos.....

...To see some examples of one type of the stuff I have been doing, you can see some here, if ya have any interest?

https://www.youtube.com/channel/UCGcTpiRFBs0fpCN_ILohDEA/videos?view_as=public

 

Because you're only steady income is a small portion of what I'm sure you take home annually, what you could do to help reestablish is put a large down payment on the truck, so the amount leftover will be small enough to not screw up your net to debt, and the large down payment will decrease risk to the ban. Then just keep the loan for at least six months and then pay off early

Sorry to read about your father

 

Welcome!

 

...Thanks, DoubleRGirl......the problem with take-home is it has Never been consistent from one year to the next...but I had considered the big down payment...and also paying it off early...just need to talk with my bank or credit-union to see how long to keep it to help bump up credit numbers?....

..Appreciate your thoughts about my Dad.....but like I said....he has little to regret, as he had a great life, and was married for 60 years, etc....Until 5-years ago...he was pretty damn active, but like so many, he feel and broke his hip...and that started the decline....but that took two full surgeries to fix right...and since then..he has bounced back thru completely blocked main artery, heart-attack, stroke(s), pace-maker, bladder-cancer, cataract-surgery, multiple serious urinary-tract infections, several more falls, disintegrating bone-mass, etc, etc...The guy is amazing!...and was Still driving at 95!...

....Hell!...my brother and I often suspect Dad may outlive us both?!....( then I guess I would have nuthin to worry about here!.)...LOL!....

 

Here is my plan....
I am about to close on a home equity line of credit. The rate is prime minus a half point.

Willing to take out a loan with Toyota as a way to negotiate with the finance mgr but will then pay it off in full as soon as I get home.

 

yeah and I was thinking a few other things but deleted what I wrote because I am pretty sure that the salesman checks this forum.

 

I doubt it, most Salesmen don't have a clue about most of the products they are selling.
Walk into a Toyota dealership today and I will bet you know more about the 3rd generation Tacoma then they do.

 

I don't know how sales guys would not know all about their product portfolio. I am in sales and for me it is extremely important to know exactly WTF I am talking about.

 

...Thanks, Joe!....that sounds like a good possible plan...and will certainly keep it in mind....as my options are somewhat limited....but your condolences, tho appreciated...are a bit premature as my Dad keeps surprising us by bouncing back from the brink like he was made outta super-ball rubber?!...He has good days--and really bad days....but then....don't we ALL?!....At least he has the good excuse of being almost 97 years old!....

...I considered Not mentioning my Dad here at all...and to just say that I would be coming into a small inheritance soon....but that just didn't feel right to me....almost disrespectful?...

...I didn't intend to make this about me...( or my Dad )......but my financial circumstances are sadly a bit unique...and leaving out details would have only encouraged lots of questions I would have needed to answer anyway........

 

Lightstream is the best one that I've used so far. If you have excellent credit, they just give you an unsecured loan. Money in your bank account the next day and you can just pay cash for the truck. Of course then, you'll just get the Title of the truck from the DMV after a couple of weeks.

 

I have an 830 fico score but it's only from 2 credit cards so there is no history. My wife is going to cosign so we will get the best rate or we will go to a credit union or penfed for 1.49 that they have right now. We have penfed credit cards that earn high rewards so we have history there.

I will be putting about 20k down on the vehicle and financing the rest. I will make minimum payments for 2 years and then pay it off in the 25th month. Housing lenders want to see minimum payments for at least 2 years so that's what I'll give them to look at when we go to buy our first house. My wife's score will greatly increase when student loans are paid off in the next year and she already has a long history. That's how we are building credit. I'm 27