Toyota's 1.9% Financing?

I'm thinking about going this route when my new truck comes in but was wondering if there's anything I should know before sign away the next 4 years haha. It seems like too good of a rate to pass on so I was planning on putting about half down and financing the rest. This is my first time buying a new car and my first time financing through a dealership so I'm just trying to get all the information I can to make sure I don't do something stupid.

Thanks!

 

A first time car buyer and you locked in a 1.9 APR in the current market!?

Jump all over that deal. That's fantastic.

*Just verify that it really is 1.9 at signing, and that you didn't buy points. Which begs the question, I wonder if you can buy points on a car loan?

 

My bad. I should've said that Toyota is offering 1.9% financing for "well qualified" buyers and was curious what it entailed, and if I might be able to take advantage of it.

From Toyota's website:
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.

 

Yeah, you can. By paying your bills on time and increasing your credit score

 

2 months ago it was 1.75% for 48 months, I missed that and got 1.9%, the difference in total interest is like less than $200. I'd say go for it, there's probably not going to be cheaper loans elsewhere anytime soon.

Also, qualifying for this is pretty easy, as long as FICO 8 score is 700+, it should be an automated approval. I recommend putting 0 down so you can leverage this low interest rate. Down payment has no effect on whether you qualify or not because they ran your credit before you make the decision of how much to put down.

 

Thank you. Yeah, 1.9% is way better than the local credit unions.

 

Well yeah. My credit is top tier, now. When I bought my first car however, let's just say my first loan bent me over sideways.

(15%). It was worse than my first credit card.

 

You're not doing something stupid. Those factory sponsored financing programs are usually only available through the dealer. With 50% down as long as you meet their credit score requirement to qualify for that deal you should be fine. They usually limit the term though, so make sure you ask. And read everything they throw in front of you to sign in the F&I office.

 

I have excellent credit, but didn't get offered this rate because I took the customer cash. The dealership gave me $1k off my truck. It worked out to be a better deal though, because my local bank gave me 2.17%

 

The challenge with using in house financing is that they make the 'loss' in the price of the truck. They don't have a magic bucket 'o cash to draw from for these low rates.

If you can wrangle a suitable price on the presumption that you already have outside financing arranged or are a cash buyer, then ask about the 1.9 as an option.

It's like a trade in. If the dealer didn't make money 99.89% of the time they wouldn't be doing it. Which BTW, if you have something to trade, don't offer that up until you have your 'cash and carry' price worked out. Then you'll be closer to knowing the real trade allowance.

It's all shells and peas.....

 

Makes sense. As far as I know I'm paying MSRP.

 

Definitely take customer cash if you plan on selling the truck relatively soon, you end up owing less money. Low rate is good if you are making only scheduled payments and stretch the loan to its original mature date

 

If you have to ask what "well qualified buyer" means, you probably aren't one.

 

I don't plan on selling it, well, ever... But I'm almost done paying it off. At the rate I'm going I will have it fully paid off in 18 months. I only have a few thousand left on the loan. The amount of money that I pay towards interest will be about $500

Edit: The loan amount was low, because I had a big down payment. I've been making extra payments towards "principle only" for over a year.

 

In May 2021, Toyota could not go lower than 3%.

I had an 830 credit score at the time (I got the loan without the wife's income) from USAA at 1.8%.

My wife let the cat-out-of-the-bag when the financial guy asked about our bank's interest rate.

Definitely read the small print and confirm it is a fixed rate.

 

I was sitting pretty knowing I could get 3% or so (it's been 10 years so I forget) from my credit union when looking at my 3 year old truck. The sales guy started talking about financing and I figured let him run his mouth before I drop that on him. Just as I thought I was gonna reel him right up he said "you're approved for the 0.9%". I kept my mouth shut.

 

Wow!

That's literally HALF of my INT Rate!

Toyota was gonna give me $1K rebate but the catch was, I had to finance through them.

Once I told them I had my own financing, they only offered me $500 rebate...of course they tried to get me to pay the other half.

This, after the contract was signed and before financing.

When I spoke to the Dealership Manager about this situation, they added the $500 to my trade-in to make the deal work.

 

Is that for real? $1,000 car note? Man I cringe paying $320 for mine. I hate that $320 going out the door so much I'm probably gonna just
pay off the $9,500 in the next few months and be done with it. I remember my first car payment was $148 a month back in the day.

 

Agreed, if you have to pay $1k a month for a car note, you probably should buy a cheaper car or save up to buy a car later