Toyota's 1.9% Financing?

good point, I'll have them sign something on paper for such scenario

 

Do you know if there are any penalties for paying off the loan early?

 

usually not but you’d have to check with the dealer when you get to signing a contract

 

TFS has no pre-payment penalty.

Wife and I picked up a new Corrolla HB last year. We financed through TFS at 1.9%. There's was a little fight about that. We had the cash to buy the car outright. She did not want to pay interest. I wanted to put nothing down and use that cash to make more cash.

We ended up compromising. Half was put down and we financed the other half. At 1.9% the total interest on the $11K we financed over 4 years is $468.

I took what was left of that money and invested it. As long as I can beat 1.9% over 4 years I win. So far, just over 13 months out from date of purchase, my returns are over 17%.

Financing isn't good or bad. It's a tool. Used correctly is can set you further ahead in the game of life. Used incorrectly it can sink your ship.

 

100% agreed, I don't want to sink a lot of capital into a truck when I can finance at such a low rate and use that other cash to invest elsewhere. I just wanted to make sure that I wouldn't be put in a corner and couldn't pay it off early.

 

For sure man. Pre-payment penalty was the first thing I checked before agreeing to the terms of the loan.

Another thing that came up after the fact was insurance. Since it's a shiny new car my insurance bill reflected that. One way to decrease that monthly burden was to increase the deductible. My wife and I live in a small town so I felt comfortable that our chances of an accident where worth that trade-off. We also have money in the bank to cover a higher deductible.

I hopped on Gieco's website and moved the deductible from $500 to $3K. I also moved the deductible up on our 4Runner that we own outright. Doing that saved about $1500 a year. When I went to approve the changes I was hit with a warning about "finance company may require a lower deductible".

I called TFS and was on the phone with a native english speaking CSR in about 2 minutes. I asked about the deductible and they have no max deductible policy. Another plus.

 

There is not. But always clarify before signing the papers. I did.

 

I work at a Toyota dealership. No speical APR or dealer cash on tacomas currently.

 

https://www.toyota.com/central/deals-incentives/?vehicles=tacoma

 

Sorry, should have clarified. No incentives for Southeast Toyota dealers. NC/SC/GA/AL/FL

 

Depends on region homie. SET always is trash for Tacoma offers.

 

These TFS incentives are subsidized by the manufacturer, the dealer won’t take a hit on their bottom line relatively speaking. They would rather you use TFS in house , vs your own financing.

 

I should look into this when our new Sequoia arrives.

 

You should check your states insurance laws, depending on the state, in a lawsuit the owner of the vehicle is ultimately responsible....there is a high profile case in Michigan right now involving just this. Owner of vehicle drops car off at car dealership, tech that cannot drive manual transmissions injures another badly, dealership caps out on liability, they went after the owner of the vehicle.

Your are probably more exposed than you might think, but I would look at the small print on your states insurance laws etc. There is a very real chance that in a serious accident involving major litigation that you are exposed.

When you rent the car from hertz you sign that responsibility from hertz away with the rental agreement.

 

Very wise choice, to be sure.

As an aside, the Michigan case you mentioned..not sure if I heard about it prior or not but that's just absolutely insane that the owner of the vehicle is getting dragged in. What little I know of those laws (though not MI particularly) is that a bailment to the dealer from the owner is created when vehicle is dropped off.

 

You guys get great rates in USA.

Finance rate from Toyota Canada is 5.29% for 48 months.

 

Should have taken their offer and refinanced it through your bank when you walked out the door and score on both ends.

 

Yeah but you guys get Access Cab Manual TRD Off Roads.

 

We paid off all credit cards in Jan 2021 and wife paid off her car loan with local Credit Union at the same time.

Started calling banks to get the best rate for Refinance.

Used the local Credit Union we had been members with since getting to Delaware...so we had loan history/payoff with them.

Started in March and by April completed everything...including resubmitting our monthly paystubs because a month had gone by during the review.

Did walk-through with the Appraiser and pointed out all the recently new systems including:

Crawlspace Encapsulation
All-New Main HVAC System
New Water Heater
New 2-car double insulation garage door
Stand-alone HVAC unit for bonus room to include all-around insulation (floor/roof wall/attic)

The Loan Officer also had an estimated value of our home which I showed the appraiser. She must have taken that into consideration because the value she gave was almost spot on to the estimate.

Once the dust settled and we had our first scheduled mortgage payment in July, it was "Tacoma Time!"

My wife did not like that I called my future purchase: "Tacoma Time". lol (That's what I decided to use as my username+my age at the time)

Somehow, my credit score stayed above 800+ and I was able to get. the 1.8% rate from USAA.

Good Luck!!!

 

I was happy with them adding the $500 to my trade-in...they were breaking the contract by having me come up with the difference.

I should have asked for OEM LED Headlights and a TRD Lift...but that's water under the bridge now.