financial question

I just got a 2010 access cab automatic 4x4 trd OR. Only 42,000 miles. I financed it through toyota financial as I had to travel to get the truck and my bank wouldnt approve a loan over the phone. Toyota gave me the same interest rate (2.99) that a local bank would have, so i didnt get screwed on that end. Heres my question. I would really prefer to have my loan through a local bank. I feel more comfortable knowing I can drive there and talk to someone in person anytime I want, and also I can make my payments anytime in person. I also want to be able to specify if i want extra payments going to principal. Would it be a bad idea to wait for my taxes to come in, make a large payment on the toyota loan to get the principal down, and then refinance with a local bank? That way I have my loan locally, and I will have smaller monthly payments since it will be a smaller loan. what do you all think?

 

If you feel your bank would suit you better and give you the same, or better yet, lower rate, do it. Otherwise, what's wrong with TCS? I've used them without any issues at all.

 

I don't see the need to do that, but it that is what you want to do then go for it.

I've used local banks, and banks all over the country. The only time I ever had an issue was when I was financed through a local bank, and I couldn't make an electronic payment through my banks website. I had to mail in a check, and I was constantly forgetting to mail in a check, as I set all my bills up on autopay through my bank.

 

Can you set up an online account with Toyota financial? If so, I'd just do that.

You can pay as much as you'd like whenever you'd like no matter what. Unless you're going to put your income tax somewhere it is going to earn you more than 3% interest, you'd be smart to apply it to your car loan to pay it down, unless you have other debts at a higher interest rate.

 

I like to put extra on my loans when I can. Is it easy to specify between a normal monthly payment, or an extra payment directly towards principal?

 

If you pay more, or multiple times, per month it goes to the principle. Toyota Financial is really easy to deal with and you got a good rate. Set up your online account, pay your bills, and enjoy your truck.

 

If you want lower interest rates. Check out your local credit union. They usually have special rates around 1.2 to 2.0.

 

so its official that any amount extra over your monthly payment goes to principal with toyota financial?

 

Call them and ask for 'offical'........ don't take it off a forum.

But generally that's how most loans work.

 

In my experience with Toy Financial
they have no built in way online to put extra to principal you have to call them or send them a check specifying.
If you pay extra, it goes towards you next payment ....
been there done that.

 

Used car rate are always higher, what's the big deal with local? Toyota financial can be serviced online... no real reason to ever have to talk to someone face to face.

 

If you choose to refinance, I would put a couple of credit unions on the list. Often will have much better T&C than banks.

Another way to 'pay extra' is to just set up another fund, put your 'extra' in it, and when it builds enough to make a nice swipe (say $1k?) work out how to get them the money.

Paying off in advance is always good, as is saving to pay cash for it's replacement.

 

^^^this. I went online yesterday to make an extra principal payment, and they required sending a separate check to an actual location. this is burdensome compared to simply having it come out of my checking automatically since I've set it up this way. ended up getting the payoff balance and now headed to the c.u. to pay it off
for the op, your plan to deal locally is obviously not needed these days, but for your peace of mind and ease in making extra principal payments, that may not be a bad idea.

 

I have one book of checks that I may have used 2 or 3 out of in the last few years. Online banking is the way to go. I haven't even went in my local bank for a long time. My pay check is direct deposit, I have a debit card and I have my online banking.

 

Understand and do all the same things. Gives a lot of freedom. Can travel and not worry about bills getting paid, yada yada. In fact I use it to make money in a few ways. Discounts, bonuses, etc.

However, every once in a while I ponder getting off the grid. Going old school with cash and as little electronic interaction as possible. There are some benefits to that too, and they could grow (the benefits) in the event of certain catastrophic events. Us crackers would liken it to the aftermath of a big hurricane, where everything collapses for weeks.

 

IMHO going with local Credit Union (rather than bank) is the way to go if you can get the loan for a competitive rate. A vehicle is the 2nd largest purchase most people make and if you want control of the loan a person to person visit to your local CU is the way to go. You never know when you'll need that human to help you rather than a website. While you're at it see what you can get in terms of interest rate to give them your extra payment each month rather than payment on the loan. Most CU's also have the on-line payment available and even will offer lower interest rates if done that way. Anyhow, nothing wrong with using a local CU. Bank?

 

You can make bigger payments through Toyota financial. I paid my truck off in a year on a five year loan. I didn't care as much about the monthly payments as I did about the loan amount knowing I was gonna pay it off early. Also make sure there's no penalty for transferring the loan elsewhere for a year. Dodge did that to me when I bought my challenger. As others have said any extra goes towards next months payment. If you pay extra every month you'll start getting monthly bills for zero,just keep paying extra.