Toyota's 1.9% Financing?

Fortunately for me, I was active duty and newly promoted to E7 when I got to Dover AFB, DE in 2006.

The mortgage was paid with my BAQ (Basic Allowance for Quarters) at E7 rate with family.

80/20 was a good loan design for our first-time home purchase.

It also helped that the seller found out we were military through our Real Estate Agent and settled on a lower price for us to get our first home.

What a way to say, "Thank You for your service."

 

$24k down.

 

Note the key phrases:
Qualified customers who finance a new 2022 Tacoma can receive 1.9% APR for 48 months with 48 monthly payments of $21.65 for every $1,000 financed. Terms available on approved credit through Toyota Financial Services (TFS) at participating Toyota dealers. For only very well qualified customers. If you do not qualify for the offer, the amount and percentage of any down payment vary with your credit qualifications. Dealer contribution may vary and could affect price. Individual dealer prices, other terms and offers may vary. Must take retail delivery from dealer's stock and terms subject to vehicle availability. Cannot be combined with Customer Cash, Lease, Lease Subvention Cash. Excludes (7597) 4WD D CAB TRD PRO V6 6MT, (7598) 4WD D CAB TRD PRO V6 6AT. See your participating Toyota dealer for details. Dealer sets final price. Offer available in AK, ID, MT, OR, WA regardless of buyer's residency; void where prohibited. Expires 09-06-2022. Toyota Financial Services is a service mark used by Toyota Motor Credit Corporation (TMCC). Retail installment accounts may be owned by TMCC or its securitization affiliates and lease accounts may be owned by Toyota Lease Trust (TLT) or its securitization affiliates. TMCC is the servicer for accounts owned by TMCC, TLT, and their securitization affiliates.

 

Yup, the "soft second" mortgage..was going to do that in 2004 when we bought but ended up getting my wife's twin sister's house so they gave us a "gift of equity" of the 20% instead. We refinanced twice..cashed out equity to do vinyl siding the first time as well, both times we got a much lower rate. We have been paying at least one extra payment per year even in the early years when it was tight, in more recent years we are doing 5-6 extra per year. Especially important at our age.

Our kitchen..we used to joke that one of our parents would have to leave us some money, which ended up happening when her dad passed in 2013. We wound up with a whole new kitchen (save appliances and windows which we had done recently).

 

That soft second 20% was at 8% interest as opposed to the 3%+ on the 80%.

Fortunately, I was active duty and getting BAQ (Basic Allowance Quarters) to cover both loans.

That changed when I retired from active duty after 25 years in 2011...so it would be about the time we did a refinance to combine the balances into one loan.

We had $75K+ in equity for our home this time around. Since 2013, we had paid off a Crawlspace Encapsulation, All-new HVAC, Water Heater, Garage Door and lastly, insulated the Bonus Room over the garage to include a stand-alone HVAC and more insulation in the attic.

Everything was explained to the Appraiser who I think did an excellent job of reviewing our home.

Buying my first New Toyota Truck was a Bonus for me since my wife got her first new car EVER back in 2017...so, it was my turn.

EDIT: I'm still wanting a new roof and vinyl siding too!

 

Very smart all around. My house needed a total rehab..old wooden windows that rattled like hell, no insulation, 40-50 year old electrical..ugh. Didn't do any additions per se, house is so old it might be more cost effective to relocate.

Re the roof, I didn't want one but had to get one 2 years ago. Went with metal because the rear is prone to ice dams. Cost me about 11K but well worth it, 40 years or so estimated longevity I still come out ahead financially versus shingles even if not for the other issue. Buy once cry once.

 

If you can swing 48 months......

 

The Toyota financing is fine. I have used it. It's a standard simple interest loan. They have an app to manage it from your phone if you're so inclined.
The 1.9% rate is cheap money. May as well use it unless you can find cheaper money.

 

Yeah seriously lol. 48/mo is tough for nearly anyone. I was able to get 72/mo at 1.99 through USAA last year. Much easier payments, the little extra interest total is worth more piece of mind in case of job loss or hardship

 

Thanks for the compliment!

Our home was built in 1999 so the roof is OK but the sand granules are slowly starting to come down the drains...and that's worrisome. It's not a lot but I worry about stuff like that.

When we had out sliding door installed as part of the kitchen remodel, the installers noticed when they removed the vinyl siding, the builders didn't add the lining that is in between the wood and the vinyl...so another worrisome issue that's on my mind.

Our home is a great investment...and I am happy to have retired here in Delaware.

Who would of thought a guy from Los Angeles would join the USAF, marry a Scottish lass, start a family & settle down on the opposite coast in the 1st State.

On a side note...I am a firm believer of the "Buy Once Cry Once", philosophy.

 

It is cheap, even 2.9 for 60 months is a great rate via TFS. Both of us are A+ rated, but only can find 3.89/60.

 

I got 1.8% for 60 months...no penalty for early payoff.

I can't imagine having $1K monthly car payment.

I ALSO can't imagine paying $5K for rent like they do in NYC. That's insane!

 

That's what I'm thinking as well. The loan is through Toyota and not a bank/credit union, correct? I've got pretty good credit but have never had a car loan so I'm not sure if I'll get approved haha.

 

This is good deal. I am on the same 1.9% APR with $1K off MSRP discount thru TFS.

I'm waiting for some old dude who hasn't buy a new car in 30 years to tell you to offer cash to get a better deal...

 

Haha for real. If you don't mind me asking, what was the process like and how difficult/picky are they on approving people at that rate?

 

I did the Toyota 1.9% at 48mos but with such a short term I knew the size of the payment would annoy me so I put a lot of cash down.

With borrowed money so cheap right now I see a lot of arguments for financing as much of a truck as you can based on putting your cash to work elswhere in the markets etc. but I just personally can’t stand having a car payment that rivals a mortgage payment, no logic involved on my part just a personal preference.

 

For me they ran my credit and asked for a copy of my 1099 (self-employed) from last year, and then while it was processing asked me to dig up 3 months of most recent bank statements but I got approved before I could even produce any… I do have above average credit score which may have helped.


Also as someone mentioned before the amount you are going to put down and/or value of a trade-in is not factored in during your finance application.

 

It was quite simple for me (Minneapolis Suburb area).
I brought my in December 2020, sales guy look up my credit score. Just give me the key for test drive, he didn't even come with me.
My credit is good, plus my wife's Sienna was brought from the same dealer.
After test drive, I have to talk to the up-sale people on extended warranty and more dealer installed accessories.
There is no negotiation, price is firm, no "let me talk to my manager" bull$hit, I was able to talk them to gave me more on trade-in.
Just be thick skin and say "No" to extended warranty and under-coating stuff....
The loan was approved within 30 min.
At the time, it was take the TFS deal plus $1K off or paid full MSRP. They don't care if you pay cash.

 

Interesting. Thank you for the information. I've got pretty good credit but have never had a loan...just credit cards, so I'm worried I might not have the "history". I'm currently a student working part-time so I'm not sure if that has an affect either.

 

Nice! Thank you for the info. Yeah, when talking with the salesman a while back he basically said you're going to be paying MSRP. I've got pretty good credit but haven't had a loan I'm worried that might be a flag.