[RylisPro]

Is there any benefit to using Toyota Financial Services? What are the negatives to using TFS?

The last time I walked into a Toyota dealership to buy my then brand new Corolla was back in 2015. Admittedly I was hungry at the time & wasn't think straight haha, but was able to get the offer & paperwork from the finance officer which I took to my bank & got my own auto loan with a lower APR, for the car & proceeded to pay off within 2 years. Looking back if I remember correctly, I think the dealer tacked on fees as I was basically paying in cash, but I didn't really care because all I needed at the time was a daily driver, a cheeseburger, fries & a milkshake...

Fast forward to now, I'm wondering if there is any positives to using TFS when purchasing the GR86 vs. going to my Wife's credit union which has even lower auto loan rates than my own personal bank? Anyone on here used TFS before? Any feedback or things to look out for?

Thanks,

 

[HK416TX]

First thing to check: Toyota Deals & Incentives | New Toyota Special Offers

Here in TX, it's $500 off the total price if you finance your vehicle through TFS.
'Cash is King' doesn't apply to vehicle dealerships unfortunately. You'll always get the best deal/biggest discount/more freebies or thrown in accessories if you finance through the dealership, because that is where the vehicle dealerships make their real $ nowadays, not on the actual sale of the vehicle itself.

Now obviously Covid has altered the above slightly in that new vehicles are rare and you don't see as much in the way of discounts and freebies and all that, but nevertheless, financing through the dealership is their #1 goal and will get you the best 'off the lot' deal.

Then... once you have your vehicle for the best possible price... go ReFi it through your preferred lender for a better interest rate the following month, or pay off the note if you have the cash to do so!

 

[DoD]

First thing to check: Toyota Deals & Incentives | New Toyota Special Offers

Here in TX, it's $500 off the total price if you finance your vehicle through TFS.
'Cash is King' doesn't apply to vehicle dealerships unfortunately. You'll always get the best deal/biggest discount/more freebies or thrown in accessories if you finance through the dealership, because that is where the vehicle dealerships make their real $ nowadays, not on the actual sale of the vehicle itself.

Now obviously Covid has altered the above slightly in that new vehicles are rare and you don't see as much in the way of discounts and freebies and all that, but nevertheless, financing through the dealership is their #1 goal and will get you the best 'off the lot' deal.

Then... once you have your vehicle for the best possible price... go ReFi it through your preferred lender for a better interest rate the following month, or pay off the note if you have the cash to do so!

if I finance initially to get a good deal, then can I pay it off immediately(say in the following month) without penalty?

 

[HK416TX]

if I finance initially to get a good deal, then can I pay it off immediately(say in the following month) without penalty?

It'd be the same deal as a mortgage, or most other cases - check the small print to ensure there is no 'pre-payment penalty', and if not you should be good, but do your homework on it mate, I'm just a dude on the internet lol

 

[DannyGR]

First thing to check: Toyota Deals & Incentives | New Toyota Special Offers

Here in TX, it's $500 off the total price if you finance your vehicle through TFS.

Can confirm the above, I was approved over the phone today through TFS and am getting the 500$ rebate out in Oregon.

 

[ScoobtotheNoog]

if I finance initially to get a good deal, then can I pay it off immediately(say in the following month) without penalty?

Yes as it is a simple interest loan. The finance guy will probably try and give you some BS along the lines of "you have to wait x amount of time to pay it off or there will be a fee, or they will charge the rebate back". Those statements are a lie. That's them trying to maintain their kick back they get from the lender. You can pay it off ass soon as you get an account number. I've been doing doing it this way for years to maximize my deals.

 

[ScoobtotheNoog]

Can confirm the above, I was approved over the phone today through TFS and am getting the 500$ rebate out in Oregon.

What kind of rates are they offering?

 

[Stephenm]

I’ve read that dealerships make a profit when you
use their in-house financing. If possible, you
should try to find outside financing. You may get
a better rate.

 

[DannyGR]

I’ve read that dealerships make a profit when you
use their in-house financing. If possible, you
should try to find outside financing. You may get
a better rate.

I tried to use my credit union but was unable to since I’m buying out of state and was told only way for me to get the car was to finance through TFS

 

[DannyGR]

What kind of rates are they offering?

If you are asking about “special” rates there was non offered to me. I don’t want to throw numbers out there as I think it will vary on an individuals credit and amount of down payment given.

 

[HK416TX]

The APR % rate offered by TFS will in most cases be higher than you could yet at your bank/credit union etc...... there's a higher chance you'll be approved through them because they'll do anything to take your business, because they're in the business to make money and financing through a dealer is their way to make real money like I previously mentioned.

Usually you can't combine offers, so you won't get offered the 1.9% for 72 months (if offered like on their SUV's) AND the $500 credit. One or the other. And so if you take the $500 credit, it's fairly safe to say the interest will be higher. The payment estimator on their website is spitting out 4.5% APR for excellent credit so that's probably a good ballpark for what to expect.

 

[DannyGR]

@HK416TX if they’d offer me 1.9 or 500 rebate I’d take the 1.9 in a heart beat lol. Plan is to refi with my credit union after a month or two, either way I’m happy to get the car at msrp w/rebate.

 

[RylisPro]

if they’d offer me 1.9 or 500 rebate I’d take the 1.9 in a heart beat lol

Wouldn't it be better to take the $500 TFS APR cash if you were going to refinance anyways?
The $500 TFS APR Cash had expired 1/3/2022 at the time I wrote this post but it popped right back up today until 1/31/2022!

I doubt that I would get the 1.9% APR from TFS, probably 4% more likely. So I'm thinking as long as there is no pre-payment penalty with TFS, it wouldn't matter as I'm going to refi with whichever bank/ credit union that has the lowest APR, & no initial refinance fee. Pay it all off within 18 months so then I can get my track wheels & sticky tires haha!

 

[DannyGR]

@RylisPro at 1.9% there would be no need to refi for me.

 

[slowv6]

just a simple math problem, if your dealership finance manager is doing your any good, Bank of America is offering 2.3%apr with Top tier credit.

If you are at Top tier credit and your finance amount is over $10k. You better off hand extra $500 to your dealership and take that lower rate than TFS. (TFS is showing 3.99% apr)

BTW, something is wrong with toyota web est. payment.

Work with your salesperson and their finance manager. Have a loan payment calculator on your phone and punch in numbers.

 

[Shankmeyster]

Do all numbers before you even walk in the door. Agree to a price you are willing to pay before you even show up at the dealer or have that price in mind before you talk about purchase with a salesperson. I've learned this through bitter experience and do NOT go in with a payment number. Only a final price. There are plenty of calculators that you can use to figure out the payment yourself and research to tell you what you should be asking for for a total price. As to financing, go with whoever has the lowest rate that you have at least some affiliation with.