Toyota financing?

You guys are like my google. Anyone have any knowledge of auto loans? Picking up my Taco today and the stealer just called and said my rate is 5.89!! I was shocked. I told them I was preapproved for 3.5% and they told me to take their loan so I can get the 1k, and refinance with my credit union/bank after I receive the loan. Any thoughts? Otherwise, I'll lose the 1k rebate.

 

they offered to match my rate I got elsewhere, so bring them the pre approval letter and tell them to match it or the deal is off. Easy.

 

Definitely take the 1k rebate. Have a loan from a bank of your choosing at a lower rate. I think this is fairly common. Never ever turn down the rebate from Toyota.

 

Sounds a little shady.

If it was me, I would tell them the deal is off, and hang up the phone- they might call back with a better
deal.

Good luck.

 

If you can swing it, take their rate and then refinance on your own.

 

I walked in with a pre-approved loan from my bank for like 2%. The dealership was quick to beat it.

 

Dealers can usually match or beat what you bring into them. But they have many banks they can go through.

Problem is maybe the rebate is only if you finance through toyota itself. If that’s the case take their loan and rebate the refinance through your place at a lower rate. Just make sure your place will do that for ya

 

Are they no longer doing the 1.9%

 

Refi rate may not be as low as a purchase rate. Doubt its much difference though. 5.89% on a new car definitely has some good points in it for the dealer though. I would make sure the bank is good with buying from the dealer with the 1k rebate and refinancing with them before I made the deal.

 

Some of those offers are regional. I think in my area, its 1.9% 60 month and 2.9% 72 month for 2018 clearance event. That may be national though.

 

I would never buy a car and then try to refinance it 1k is not hard to beat if you take the 3.5 what is the term of the 3.5 and the 5.89 48, 60, 72 months ? just do the math but if it were me I would take the 3.5%

 

They tried tricking me into a higher rate, 3.8%, in order to get their cash incentive program. It was only $500. Quick math told me to give up their rebate for the lower rate.

 

The thousands borrowed are the biggest driver of the payment. Typically, 1k at 0% on 60 month is $17.00 per month on your payment. So multiply thousands borrowed by $17.00. Higher interest rate makes that number go up. At 5.89% its $19.00 per month per 1k borrowed. 3.5% makes it $18.00. If you are borrowing like $35,000, its $630 at 3.5%, and with 1k rebate and 5.89% its $646.

 

Dealer F&I will act like they got you a great rate which really isn't a great rate if you compare it to other lenders on your own. Reason being, some people are dumb enough to hear a rate and say "OK" without doing due diligence. Then they have you sign the paperwork at the high rate and the bank gives the dealership a kickback because they would've taken the deal at a lesser rate.

I had a dealer do this to me once. I called BS on their "Great rate" and they quickly dropped 3 whole percentage points when I told them what I was pre-approved for with another lender. But that is because they called in a favor with a lender. BS. My credit score was well over 800. They just deal with uninformed people all the time and try to take advantage.

 

If your not doing a big down payment, or dont have a credit union immediatly lined up, I would do the lower rate

 

Calculate your loan origination fees (for the Toyota loan and your refi), to determine how much the 1k rebate is actual money saved.

 

No down got 4.3% still high for me

 

Rates also depend on your credit as well.

 

I make the mistake of assuming the best. Been awhile since my credit was not as good.

 

My spouse and I are both > 800 credit scores. Toyota wanted me to finance at ~6% (this was 2.5 years ago) with them. I got a ~1% rate thru my bank. Rather have the cash in the bank at that low of an interest rate.