Toyota Finance

[Barrabart]

G'day all,

Can anyone tell me if they've compared Toyota Finance to another finance group?
Have put down a deposit on a new car for the wife, little Toyota Yaris......
I'm away at work at present and the wife went for a spin in the latest model, we'd test driven one a year or so ago, but things changed and we put the car purchase on the back burner (bought a house instead, hehe)........anyway the wife was given the quick spiel regarding Toyota Finance.
Though going into it we'd thought we'd most likely just go through our ANZ bank branch though, anyway I emailed the lady at our branch and apparently they don't do car loans as such, the finance will be through Esanda Finance and they don't conduct this in the branch.
Without us having compared, I'm wondering if anyone else has already done so...... it's not a huge loan, so we're not overly concerned that it will take yrs to pay off or anything, just don't want to be ripped off big time setting up loan through a car dealership, though I'm assuming they'd still be competitive, just unsure how competitive.......... any thoughts, suggestions from anyone....??

Basically, I don't feel like going through the whole loans comparison while sitting up here on nightshift in PNG and doing it all by email etc...... just be too drawn out I feel,

Regards,

Barrabart.

[D4D]

Yep, Prado was through Toyota Finance, CHP. Your rate/deal will depend on your current financials. I had no problem with them and when the initial 5 year lease was up they offered me a very cheap rate on financing the balloon which I did. They now have some new program where you effectively rent the car and then hand the keys back at an agreed time. If you're going with their 0% deals, watch the price of the car as they won't discount it. When I enquired it was cheaper to get the discount on the car and pay a normal rate rather than 0%.

[KingBilly]

Are you an RACQ member?  They do car loans.  Maybe worth comparing.

KB

[Swannie]

Yep I'm through Toyota finance very competitive price, haggle with them and they will throw in the extended factory warranty.
Swannie

[Apples69]

There are two parts to the finance. What the dealer obtains the finance for ( this is what is quoted to the buyer) then there is the dealers commission on top and this is what needs to be looked at.
Get them to break the quote up and see what they make out of it. I've been told they make more money out of the finance then the car.
Financing through a dealer is normally very expensive however straight from a Bank is not much better as all they do is a personal loan and usually unsecured so not real cheap.
If you have a broker that you know ask them as they have access to a number of finance companies that most people have never heard off.
Yes I am a broker and never had a problem beating the dealers repayments ( don't look at rates when comparing these types of loans)

[Homer_Jay]

As apples said, compare repayments not rate.
They can quote a cheap rate but add heaps of commission up front OR the can hide some of the commissions by increasing the rate.
Dealers will negotiate on the finance and usually the manufacturer backed is not too bad if you haggle.

The problem with dealer finance is that you usually don't see the paperwork until your there ready to pick up the car. By that stage you just want the keys for your car and the last thing on your mind is reading the paperwork to see what fees they have loaded into the finance.

Get a quote from a finance broker then get Toyota to beat it. Just get it all in writing before turning up to sign anything.

And stay away from going direct to a bank!

Good luck.

[chester ver2.0]

only thing I found with dealer finance is that when my circumstances changed and I wanted to pay off more so I owned the car quicker I was actually being penalised for this

[prado2004]

Totally agree with Apples,

I am a finance broker as well. My business finances home loans, business/commercial loans, equipment finance, car loans, personal loans so I understand it all very well. Feel free to PM me with questions and am happy to help. What I tell my clients is the following, and it usually works.

i provide the finance and give you a sharp rate then you negotiate the car with toyota as if you are paying cash. generally you always end up in front. dealers don't discount cars much when you use their finance. also they always quote rates but with cars you are better comparing repayments not rates. they quote cheap rates and they usually hide a lot of costs.

i.e. nissan and toyota often advertise 0% or 1% finance but when you read the fine print its only for the first 2 years a lot of the time, then it reverts to 7+%

work it out over the term of the loan.

Also using a broker who owns his own family business you are dealing with a personal finance manager, like the banks use to be. someone who is with you for your finances for life. business, home, equipment etc. it isn't a transaction for our business (I cant talk for everyone). we often tell people when things are a bad idea and most people appreciate genuine service.

good luck and just do your homework.

[Moggy]

I have a simple spreadsheet setup where you enter the cost of purchase, # of repayments & cost of each repayment.  It will then give you the actual % interest rate inclusive of all charges. I could fwd you a copy if you like. I found it good when i bought my last vehicle  & was offered mazda finance. (& yes the nazda finance was Shit)

Sent from my SM-G900I using Tapatalk

[briann532]

Just my 2c worth, but when I bought the playdo I told them I was paying cash and negotiated the best deal I could.
(Bearing in mind, I'm no real estate agent, but I was happy with the deal.)

I then told them I would like to consider finance. (Now that the price was locked in)
They were offering 1% on small cars - Yaris corolla etc, but 9.3% for the playdo.
I argued the point with them and in the end I got 2.9%.
They then asked if I wanted to pay ahead monthly or in arrears.
I opted to pay ahead so I was always ahead and then made my first payment the balloon figure.
This dropped the payout figure as there was no interest charged on the balloon and I was always going to be way ahead.
Considering my mortgage rate is a lot higher than that, I figured I was in front.

I recently sold my house and was considering paying out the playdo and the payout figure varied $216.00 if I paid out early, so I wasn't too upset. Didn't end up doing it anyway, but for other reasons.

I have found other than the original bloke being pi5Sed that I asked for finance after haggling the price for cash Toyota finance have been great to deal with.

Brian

[prodigyrf]

Nah you should be able to get 0% car loans 
https://www.carloans.com.au/guides/0-zero-percent-car-loans-the-truth/

OK so you don't believe in Santa Claus anymore (yes there is a Santa Virginia and he's the dopey beggar paying off the plastic in Jan, Feb, Mar....?) so like we know in business the cheapest dough around is the mortgage money on your PPR so if you can extend that easily and then walk in as a 'cash' buyer then that's your best bet. In biz even when we pay our house mortgage down to zero we never discharge the mortgage but leave it in abeyance to draw upon or renew the principal as it saves setup fees and also looking after the Cert of Title (lose that and it'll cost you near a grand to replace)

[BaseCamp]

Just my 2c worth, but when I bought the playdo I told them I was paying cash and negotiated the best deal I could.
(Bearing in mind, I'm no real estate agent, but I was happy with the deal.)

I then told them I would like to consider finance. (Now that the price was locked in)
They were offering 1% on small cars - Yaris corolla etc, but 9.3% for the playdo.
I argued the point with them and in the end I got 2.9%.
They then asked if I wanted to pay ahead monthly or in arrears.
I opted to pay ahead so I was always ahead and then made my first payment the balloon figure.
This dropped the payout figure as there was no interest charged on the balloon and I was always going to be way ahead.
Considering my mortgage rate is a lot higher than that, I figured I was in front.

I recently sold my house and was considering paying out the playdo and the payout figure varied $216.00 if I paid out early, so I wasn't too upset. Didn't end up doing it anyway, but for other reasons.

I have found other than the original bloke being pi5Sed that I asked for finance after haggling the price for cash Toyota finance have been great to deal with.

Brian

Hi Brian,

Any chance of explaining why you made the balloon payment your first payment. ...  I don't understand?

I am thinking it was because (a) you have to pay it eventually at the end of the loan in any case  (b) they are not charging you any interest on the balloon  (c)   paying the balloon up front reduces the amount of capital that they are calculating and charging you interest on  ... 

(but) what I am not sure of is this .....   I thought HP type loans were a set monthly P&I repayment amount - regardless of how much you "overpaid" in  a particular month..

Advice appreciated. ...

As apples said, compare repayments not rate.
They can quote a cheap rate but add heaps of commission up front OR the can hide some of the commissions by increasing the rate.
Dealers will negotiate on the finance and usually the manufacturer backed is not too bad if you haggle.

The problem with dealer finance is that you usually don't see the paperwork until your there ready to pick up the car. By that stage you just want the keys for your car and the last thing on your mind is reading the paperwork to see what fees they have loaded into the finance.

Get a quote from a finance broker then get Toyota to beat it. Just get it all in writing before turning up to sign anything.

And stay away from going direct to a bank!

Good luck.

Sent from my SM-N910G using Tapatalk

[Moggy]

so like we know in business the cheapest dough around is the mortgage money on your PPR so if you can extend that easily and then walk in as a 'cash' buyer then that's your best bet. In biz even when we pay our house mortgage down to zero we never discharge the mortgage but leave it in abeyance to draw upon or renew the principal as it saves setup fees and also looking after the Cert of Title (lose that and it'll cost you near a grand to replace)

I have to agree as this is how i set mine up, plus have a business loan/line of credit which is pre approved for any plant/equipment purchases.
The mortgage is set up as a line of credit, which i can draw down on for any amount at any time. The only downfall to this system is that if your balance is zero i pay for the privileged of having it available so for me its $240 for the mortgage line of credit & $360 for the business equipment pre-approval, & that's every 6 months so in these tough economic times when i'm not spending money, I pay the bank $1k+ per year  just to have access to money.

I will add (to my previous post) that when i bought the BT50 & i could use either of the above listed financing methods & the bank presented a 3rd option which was comparable to the mortgage rate at the time. It was also only about 3% cheaper than what the dealer offered so the days of dealers(finance companies) trying to rip  off buyers with high % rates may be over.

I for one could never understand why car manufacturers wouldn't have a 0% rate for NEW cars, that would stimulate the industry no end (imo) as everybody would drive around in a new car.
I think the have a similar system in Europe somewhere for new (young) drivers to get them into safer cars rather than buying unsafe clunkers & becoming statistics

[Goose]

Some dealer finance will try to staple on repayment insurance at the last minute, to protect you if you loose your job through redundancy. The payments are covered or put on hold.

From what I've heard, those insurances are very hard to claim against and usually don't help most people, so watch out. For instance, they don't apply if you quit or if get fired or are self employed or contracting etc etc. Plus you need heaps of proof from the former employer, which can be hard to get. Additionally, to "help" you out the financier will add the cost of this insurance onto the loan amount, which in turns just drives up the total cost as you pay interest on top of insurance.

As others have said - negotiate with dealer on the best cash price and then try source your cash from somewhere.

In general, i would try to avoid any finance where you are penalised for early repayments (for example if there is an alternative where you can pay it back quicker then go with that).

My other advice when dealing with any finance -  always ask what is the full minimum amount to be repaid over the life of the loan. It really puts thing in perspective when you see a $20K car is going to cost you $35K all up.

[prado2004]

Hey guys, thought I would shed some more light on the comments about getting a loan and then paying bulk repayments off it afterwards.

The way car loans work is very different to home/business loans. I am a broker and run my own business so thought I would pass some knowledge on about the discussions.

Basically with car loans they charge you the interest on the loan size first, then when you pay this off you start paying down the principal.

So if you borrow say $125k (for a sahara) and the interest rate for example is 5%. They charge this 5% interest first, so this is why generally it takes 12 months for your loan to actually start decreasing. If you called them 10 months into it you would find the payout balance would be more then the purchase price, this is how a lot of people get burnt on selling cars for less then the loan payout.

To save you money in interest you would be much better either trading your existing car if upgradingand borrowing the lower amount, or selling it first and using the cash to decrease the loan size on the sahara.

 I know trade in values are probably rubbish but the other option is you borrow the $125k and then pay the money down afterwards from the salem of your old vehicle. The issue is you are being charged interest on 125k as opposed to say 100k if you sold the existing vehicle for 25k in the beginning or did a trade.

Happy to help anyone with specific scenarios via PM and can shed some more detailed info. I have financed quite a few swaggers into vehicles.

If you own a home it is quite easy sometimes to tack it onto the home loan (an no the term doesn't have to be 30 years like a home loan). The other benefit of doing this is currently rates are sub 4% with some banks so chances are you will save a bucket load on your home loan also. Or get a viridian line of credit like others have discussed. Or go for a car loan. the options do differ dependant on whether people are PAYG or self employed and if your business is registered for GST and you are a home owner or if you are not registered for GST and not a home owner. Some scenarios you don't need financials & some you do. Also it is dependant on the purchase price of the vehicle and the size of the balloon you would like or no balloon.

Hope that helps someone, enjoy the weekend.

[Darcy7]

another option, if its available to you, is to salary sacrifice a new car.

We've done it twice now and I wish I knew about this years ago.  Could have saved a fortune.

The biggest advantages I find are I never have to pay a cent for anything, even fuel.  Its all included in the fortnightly payment.  No surprise big rego or insurance bills.  Also, the manufacturers offer fleet discounts to the leasing companies or they supply on tender.  The savings off RRP are unbelievable.  Our Cruiser VX came in at $10k below the best price I could get at a dealer and at least $20k less than list price.....!!  Stunning.  In fact everyting is cheaper.  The insurance was less than anything I could get, Fuel is 5% off at certain fuel outlets, all the maintenance is factored in as well as any tyre changes and busted windscreens.   

Yes I have a balloon payment at the end of the lease but I'm putting that away as savings because I want to keep this car and not upgrade.  Finally if I have any probelms with Toyota (lets face it their after sales service is not exactly stellar) I call the lease company and they sort it out for me.

I don't think I would by a new car any other way ever again.

[WilSurf]

I have had a new car on a salary sacrifice (novated lease) and I don't think it is really worth it.

[Swannie]

I have had a new car on a salary sacrifice (novated lease) and I don't think it is really worth it.

X2, I think you pay the top $$ as they work it on the worst case regarding expense. I have found purchasing and then claiming everything at tax time the most effective and financially favorable for me
Swannie

[Goose]

Basically with car loans they charge you the interest on the loan size first, then when you pay this off you start paying down the principal.

Why is it with car loans you pay the interest first then the principal? With mortgages you may off the interest and principal together so i'd be curious to know why.

[prodigyrf]

Why is it with car loans you pay the interest first then the principal? With mortgages you may off the interest and principal together so i'd be curious to know why.

People who don't pay their house mortgage are rare, they tend to look after it and the house isn't going anywhere. Now what about people who don't pay their car loan and the car's condition and value when the repo man finally gets hold of it? 

[Apples69]

Goose
On car loans you do pay principal and interest but as always the interest is higher at the start due to the higher debt. Only small payments goes towards the principal.
These are fixed rates and where most people get caught out is selling early and getting hit with break costs ( the formulas they use will do your head in and each bank has a different way of doing it)
Line of credits are fine for structured people however if I know one iOS a bit loose with their coin its best to place on p&i over a set period ( up to five years is usually a good period for new cars.

[Darcy7]

X2, I think you pay the top $$ as they work it on the worst case regarding expense. I have found purchasing and then claiming everything at tax time the most effective and financially favorable for me
Swannie

That's interesting.  I don't know how others have worked but ours, the expenses are calculated on an average but the full amount goes into a kitty which can be used for anything.  At the end of the lease we get the unused balance back.

[Goose]

That's a novated lease - the finance is against you and you recieve any surplus budget at the end of the lease.

The other kind is an operating lease where the finance and budget is against your employer but you still pay for the vehicle. You tend not to get refunds for unused amounts on these. Not sure if they are still common.

[Bill]

That's interesting.  I don't know how others have worked but ours, the expenses are calculated on an average but the full amount goes into a kitty which can be used for anything.  At the end of the lease we get the unused balance back.

Mine is the same.
Plus I can op out of the fuel, maintenance, insurance, rego and tyres.
Mind you insurance through them is cheaper than anyone else for the same policy so I kept that, and it's nice not getting hit with rego every 6 months so I kept that as well.
Bill