Why is financing so different for Taco vs 4Runner?

Was just looking on toyota.ca at the 4runner trail edition
60 month @ 2.9% vs 4.29% for Tacoma?

Close in price 40K for OR 46 for Trail.
So what's the reason for financing to be more on one specific vehicle?

The 4runner is probably a higher demand vehicle here since its perfect for all the mall crawlers and soccer moms with the seating space. Would've thought they would try and make more money off something they are selling a lot more of.

 

They usually run better incentives on the 4runner as opposed to the Tacoma. The last time I looked the 4runner had a $1000 rebate and the Tacoma had a $500 rebate.

 

In my experience, they'll do whatever rate you want, assuming your credit is good. I shopped the local credit unions and found a rate of 1.99 for 48 months. They did 1.99 for 72 months at the Toyota dealership and didn't bat an eye.

 

Here are some rates to show them. You can probably find a local credit union with similar numbers.

https://www.atfcu.org/auto-loans.ht...sLzRALhAWFXW3oeXh8ykHsSjMzTL2wogGlRoCwKrw_wcB

 

when I was talking to a salesman he was telling me same thing. If I try going independent I can probably find a better rate.

 

Where do you find these rebates you speak of?

 

I got better than 2.9 on the Tacoma for 60 months. They initially offered higher and I just verbally said "Nah, I got a better rate from a credit union" and they asked what rate I got, I told them, and they said "Ok, we'll do that rate for you too."

So I went with Toyota.

Edit: My credit score was a little over 800, although I'm in my 20's so I didn't have much to back it up.

 

Find out what your credit score is. Toyota is going to do whatever they can to throw you some keys. They can do a LOT more for you if you have an 800.

 

I got 2% for my taco

 

They don't typically run incentives on either vehicles here (mid Atlantic Toyota region). They did have a nominal "keep it wild" rebate/discount for the 2015MY 4Runners. The incentive you're seeing is probably to move their 2016 models before the 2017 arrive from Japan if they haven't already.

As far as financing is concerned, credit union all the way!

OA

 

no just looking at finance rates
both were on 17s.
The 16 do have a decent discount on right now but ya.

I'll need to check with some credit union before buying see if they can give me a better rate.

 

the tacoma is a commercial vehicle with a much higher risk of ownership

 

^Probability of default should be calculated based on the borrower, not on the type of vehicle. On the flip side, the Tacoma retains its value better over the loan period, so there's less of a loss in case of repo.

Both numbers are discounted, so this is just Toyota discounting more for the 4Runner than for the Tacoma. The 4Runner faces stiff competition from unibody SUVs like the Honda Pilot or Toyota Highlander (soccer moms don't know the difference), so demand actually isn't as high (sales volume is about half of the Tacoma's).

 

I got 2.45% @ 60 months on my Tacoma through Toyota

 

The dealer I used is one of my credit unions "direct dealers" so I was able to do my financing with my credit union directly through the dealer. No markup, though I'm sure the dealer gets a piece of the action. At 1.3% for 48 months I'm not concerned.

 

True, though as you noted later Toyota will do different rate incentives for different vehicles, discounting the base rate.

Classic common instance are the 0% financing offers you'll see.

 

you mean like ford and GM always seeming to have 0% for 84 months? lol

 

The hitch with the 0% deals is that it is really just the dealer paying your points. Usually, you get 0% in lieu of negotiating a better price.

 

Correct, often it's a choice of 0% or some rebate amount.

I've seen it go both ways; sometimes better off with the 0% and sometimes better off with the rebate. Depends on the particulars of the specific offer and amount financed.

You have to run the numbers for a deal and see which is the better choice.

 

With interest rates at historic lows, the 0% is not very compelling.