Toyota Financial Question

Andrew H · Oct 4, 2010

whippersnapper02 said: ↑

I asked Toyota Financial about this a while back and this is the answer I got:

Thank you for contacting Toyota Financial Services. Interest is
calculated on your loan using the simple interest method. This means that
any funds received in excess of the amount scheduled are automatically
applied to the principal loan balance. As you make payments and reduce
the outstanding balance, the amount of the daily finance charge is reduced
as well.

If you consistently make your payment before the scheduled due date each
month or make overpayments toward the principal balance, you will reduce
the amount of finance charges you will pay. If you consistently make
payments after the scheduled due date each month, you will pay more
finance charges than were estimated on your contract.

Any payment in excess of the standard monthly payment, given that there
are no late or miscellaneous charges on your account, is applied to the
principal balance of your loan. As a result of our billing method, the
subsequent billing statement will show that your account is paid ahead.
The net result with your type of loan is that extra funds are applied to
principal.

There is no prepayment penalty if you want to pay off your account prior
to the scheduled maturity date.

We recommend you to send your monthly payment, or additional payments,
each month even if your account is paid in advance. You are not required
to send two separate checks, as referenced in your email.

We value your business and look forward to servicing your needs in the
future. Thank you for visiting us at www.ToyotaFinancial.com. __________________
Click to expand...

Alright.

I just got off the phone with them and they pretty much told me the same thing. They said that any money sent that is above the minimum payment goes towards your principal amount.

The Shape · Oct 4, 2010

Hmmm now I am confused. So T.F.S told you that anything above regular monthly payment does indeed go towards principal? That's cool then

SCFirefighter · Oct 4, 2010

Jup, that's what I have too. Simple interest loan (daily calculations) with a retail bank that had a better rate than TFS. I've rounded my payments up to $450 per month. I think I'm paying about $38 more per month and my bank's website shows me, per payment, what goes to interest and what goes to principal.

Andrew H · Oct 4, 2010

The Shape[OP] said: ↑

Hmmm now I am confused. So T.F.S told you that anything above regular monthly payment does indeed go towards principal?
Click to expand...

Yes. Anything above the minimum payment goes towards the principal. He also said something about having to continue making those payments though. I didn't question it because I am automatically paying an additional hundred each month.

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Andrew H What is this "search" you speak of?

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SCFirefighter on idiot patrol ;)

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Andrew H What is this "search" you speak of?

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Toyota Financial Question

#21 Andrew H What is this "search" you speak of?

#22 The Shape [OP] Well-Known Member

#23 SCFirefighter on idiot patrol ;)

#24 Andrew H What is this "search" you speak of?

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Andrew H What is this "search" you speak of?

#22
The Shape [OP] Well-Known Member

#23
SCFirefighter on idiot patrol ;)

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Andrew H What is this "search" you speak of?

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