Toyota Financing - Pay whole balance first month?

I just wrote the dealership a check. Didn’t want to deal with the title issues and such.

 

I agree 100% with this. I did the same with my truck, and that $$$ from Investing the money I would have paid for the truck more that made up for the interest over the life of the loan.

Housing math gets a bit weird, simply due to the length of the loan, and the amortization schedules. Ex. It was actually financially better for me to do a 15 year loan on my house vs a 30 year due to the extra years of Interest. Of course, that 15 year loan is also then financially better than paying off my mortgage today. I still can't believe current mortgage interest rates...

 

Absolutely correct. The only minor point I would make is that FICO and Vantage Score are owned by two separate companies and have nothing to do with each other - FICO is Fair, Isaac & Co (thus FICO) and the Vantage Score model is a joint venture of the 3 credit bureaus and is administered by Vantage Solutions LLC. FICO and Vantage scores can be hugely different at times, as the models put different weights on different factors.

 

Toyota offers vary constantly and due to the current supply/demand issues there might not be any right now.
When I bought my 2019 Tacoma, they had a factory offer of $750 instant rebate or 2.9% financing for qualifying individuals.

 

When I got the 2019 Prius LE for my wife SE Toyota Finance was offering 0% for 72 months. Whenever someone lets me use their money for no interest I will take it every time. The cash back they were offering in place of the financing wasn't even close to the value of the no interest financing for 72 months.

 

Pay off everything in cash if you can. Even "0% loans and homes if possible) Now I know one has to have a sizable chunk in the ball to pay cash for large purchases but its possible

We paid off everything years ago and pay "cash" for everything except where we can use our single Credit Card (last year Bof A paid us $968 in Rewards just to use their card) We always pay the balance on my phone as used. I do lease our vehicles because...well I can and love new vehicles every three years. We consider that a perk of retirement. More income than we need so why not?

I will say though before I retired (at 55) I NEVER owned a new vehicle. Only bought what we could pay cash for. (That alone saved us thousands and thousands over the years and the savings eventually led to newer and newer vehicles ) These new 72 and 84 month loans only indicate people are buying over their heads....

 

Thank you for all your thoughtful replies. I ended up traveling to the dealership, agreeing on price, then coming back with a cashier's check for the full amount the next day. Nice to keep it simple.

 

Why take the credit ding? If you have the cash, pay it up front or get a lower financing rate than a CD and make a little from it first with the CD and then pay the truck off after the CD matures.

edit: good, you used my idea, no credit dings!
I know, my post was late…

 

Do what I did, pay down a chunk leave X amount of payments remaining til the next major financial purchase.

I strongly recommend considering the next financial purchase you will make and when you will make it.

if you plan on financing something in for example 6 months pay down the balance to have 6 payments remaining.

this way you get the best of both worlds, pay down a sizable chunk of the debt and also utilize the payments to your benefit for credit reasons and have an idea when it will be wrapped up.

 

So I bought the old lady a Camry today. They claim they gave me $1000 incentive for using toyota financing, but the discount of $3800 was not broke down anywhere showing a finance incentive. The contract only shows sales price and no discount of the vehicle meaning the sale price just shows a price of $3800 lower than msrp. I read all the fine print and this is all I see in section D of the pic. Which if I finance with navy federal at 1.25% less, I should only get charged $75 bucks at the most, right? Or am I missing something? I dont want to repay the 1k back if there truly was a hidden rebate given.

 

Why send them a cashier's check, much quicker, more efficient and safer to just pay the full amount on line through Toyota Financial / Toyota Motor Credit through your bank.