Toyota's 1.9% Financing?

You must have put a good chunk down for a payment that low. My SR was slightly higher for 60 mo.

 

The finance managers hate these manufacturer captive financing deals because TFS pays them peanuts for these kind of loan origination.

They would love to mark up 1 or 2% from other banks to earn a few hundred to thousands of profit

 

Just looked at in my region this deal isn’t offered I don’t think. That would be an amazing rate in this environment.

 

Yes, here is the interest break down

I put down $1k from the deposit I made in order to secure the allocation. But everything else is financed including tax title licensing.

It really depends on the market condition.
Currently I can put my cash towards these CDs earning more money than that 1.9% interest charged.
Not too much difference but still a positive number.

 

Yes!

It would be.

We refinanced our mortgage in Mar/Apr 2021...2.87% for 15 years prior to me buying my Sport.

Did the big expenditure first then bought my truck.

EDIT: Refi/Cash-out allowed us to get a new kitchen & wood floors.

 

Subtract income tax from that interest you earn off the CD (~22-24%) and now you are negative, and it’s locked up for a few years, so not only would that cash be locked up but you still have to pay your monthly amount.

I mean, to each his own, but from a financial sense, this is how people get into debt that they can’t get out of. It just takes a job loss, unexpected medical bills, or becoming disabled, and you’re screwed.

 

YIKES!

Those number scare me! lol

 

You should never, ever ever ever ever....finance TTL! You're paying interest on taxes. They're sticking it to you twice.

 

Make sure that is the interest rate on the paperwork when you sign the papers. I had a finance guy put a different rate on the paperwork I was about to sign after the salesperson said I had been approved for the low rate. But Toyota Financial is good to work with. If you can, you might try to put a little more down payment to lower your payments. But that is a good rate. If used to be a decision to take the cash incentives vs. the low interest rate, but the cash incentives are gone. So, jump on that rate. I don't think any banks or credit unions will match that rate.

 

That's why it's good to have a trade-in & cash down.

Of course, these are just our opinions:

- Never finance TTL
- Pay towards total cost of vehicle

My goal was to finance the lowest balance...which for a $38,803, 2021 TRD Sport, that amount was $35K @ 1.8%.

Total finance charges are roughly $1750 on top of the $35K borrowed.

It was a financial decision I made and I'm OK with it.

This, after refinancing our mortgage and having money for new kitchen/wood floors.

 

True after paying income tax, it might just be in negative or 0 sum at best

 

Granted this was 10 years ago and a used vs new. 2010 single cab 2WD with 6557 miles. Base price was 17K and I had a 6500 trade in as well, 201 for 60..my second job takes care of that so I was in no hurry to pay off sooner

 

I know the common wisdom for not financing TTL is because in normal market condition, new car loses value immediately, financing car + TTL will make the loan upside down from the beginning.

But, what do you mean sticking it twice?
I think I either have to pay TTL out right with cash, or finance the exact amount of TTL + interest of course. That doesn't change the amount of TTL I'm paying, so other than interest, I'm not paying any extra TTL. Am I missing something here?

 

Okay, say the truck costs you $45k, plus TT&L. TT&L is $3k (This isnt the true amount, just a number I threw out for the sake of this lesson). So, $3k is what you pay based off the final price of the truck. If you pay it right away, it's just $3k.

If you choose to roll it into the loan, you're now financing $48k @ whatever interest rate you got. Now that $3k will inflate to $3200 or more, depending on the length of the loan and your interest rate. That is how they stick it to you twice. You're paying interest on taxes.

Regardless of the market, you shouldn't do this.

 

Same. 2.5% for 15, no cash out. I might actually pay off the house within my lifetime.

 

I see, Toyota sometimes will offer 0% interest rate on Tacomas, earlier this year they offered 0% 48months on 2WD Tacoma models.
If you got the loan for 0%, you would finance TTL right? In the example, $3k TTL after financing is still just $3k with 0% interest.

 

If it's 0.00% interest? Hell yes! I would finance it all. The $3k for TTL would stay $3k. Also, the $45k price of the truck would remain $45k. But Toyota rarely does that because they know they don't have to. That's something the Kia or GM does, so people will buy their shit box vehicles.

 

We bought our home in 2006 and I did an 80/20 split mortgage for 30 years...which the 80/20 is not done any more.

We refinanced a second time...can't remember when...but got rid of the 80/20 split and had one payment.

We had paid down the original loan for 15 years and the appraisal we got allowed us to take advantage of the equity.

That appraisal really helped because the bank gave us 80% of the the appraised value.

The payoff of the mortgage + the appraisal gave us that cash out we needed so my wife could get her new kitchen and get rid of the contractor grade beige carpet throughout the house.

Get this...we refinanced for 15 years which would be the original time scheduled from the first loan to pay-off.

I also decided to not have escrow and pay the property taxes to the state of Delaware ourselves. We can save for that on annual basis so it's not a problem.

Our home would be valued even higher now with new kitchen/wood floors.

Our home is an investment...and we wanna keep it for a long time.

 

Heard the same story from parts guys when I come to pick my deeply discounted items

 

Totally get it. I bought my first on an 80/20 in 2007. That was a brilliant loan for a first timer.

On my second house now, bought in 2016. It's a cute little shack, but hopefully it's not the retirement house. Haven't decided where the next purchase will be, but I hope to have a monster amount of equity built up in the meantime.