Question
Toyota Auto Finance Rate Loan APR?
hi, i'm looking to purchase an '07 Yaris Hatchback, but the rate I was offered by Toyota Finance is 14%. is this a reasonable rate for a credit score of 630? i know that i could try capital one, etc. but i dont want to mark my credit down even more by applying to all these loans. fyi, the last time i bought a car from Toyota they gave me 4.9% financing, but they said that was because of their special Low APR incentive. If anyone has similar credit and got good APR on their auto loans, I would appreciate any feedback. Also, if you have purchased a Yaris recently, what was your APR and credit score? Thank you in advance!
2 years ago - 6 answers
Best Answer
Chosen by Asker
Auto finance is what I do for a living and there are several things that could be in play in your scenario. If you are trading in your first car and still own a balance, you are most likely upside down (you owe more than it's worth) since negative equity can not be shown on most contracts, the amount that you owe over what the trade is worth is added to the sales price of the new vehicle raising your LTV (loan to value) this effects your rate. The other thing that might have happened is there may have been late payments on your first account. I only say this because a 630 score for someone that has paid as agreed on their car loan is not a good score. Also you may be borrowing the money for a longer term, this also effects rate. Add all of this to the fact that the manufacturers are not offering any where near the rates they were a few years ago and there you have it. You might try another dealer, as one of the other posters said dealers mark up rates to make whats called reserve profit.
Source(s)
Finance Manager for over 7-years.
by spifiman1
2 years ago
Asker's Rating: 
Other Answers
For a 630 that sounds OK. Check with your local bank. Talk to the manager, tell them your credit score and see if they can give you a ballpark rate for a new car purchase. Tell the dealer you are interested but need 12% rate and see if they have some room to lower the rate. Dealers mark up the rate from a base rate to collect a commision. Go to another Toyota dealer, see if they can pull up your application off the system. Again maybe they quote you the base rate.
by Gatsby216- 2 years ago
try a credit union ( like wescoom as you do not have to belong to any special group to join ) they can easily beat Toyota's rate that sounds like a tier 3 to tier 4 rate if I am correct I got my 06 tundra access cab finance via a credit union as i did not like the rate from Toyota despite me putting 10k down payment on the truck
by dragonfire- 2 years ago
dear frnd for any bank loan details i hope dis ill helps u.
by rajesh t- 2 years ago