Toyota Finance 1% with Toyota Access - thoughts?

[xb74 Lurker Find all posts View Profile Close xb74]

Currently looking at the latest deal with Toyota Finance which is the 1% over 4 years on GX and GXL and was wondering if anyone else already has experience with Toyota Finance and their Guaranteed Future Value (GFV).

I see some similarities with a leasing arrangement ie. the balloon payment and I can see some benefits if you are going to just upgrade the car after every finance term and utilise the GFV. I am guessing the GFV is one part Toyota building brand loyalty and perhaps two parts getting a good trade in for their used car division.

Any opinions and help is very much appreciated.

[Beach Advanced Member Find all posts View Profile Close Beach]

Read the fine print and ask questions.

How exactly does it all work?

The GFV is a way of getting your business next time, getting the vehicle back cheap and re-selling it at a profit. I dare say its also a way of locking you into an expensive service contract. Under what circumstances can they not honour the GFV? I bet there are a lot of get out clauses.

As soon as sales people try to sell you things like this (extended warranties are another example), I'm suspicious straight away.

What sort of deal is the 1% finance? Loan? Lease? Are you locked into payments for a minimum time? Can you make extra payments and get out of it early?

Its been a while since I had anything to do with vehicle leasing, but I seem to recall that you can't modify the vehicle or fit non-genuine accessories. I will bet there are a lot of terms and conditions.

I've never found a dealer offered finance deal that was cheaper than something I could find myself elsewhere.

[D4D Addicted PP Member Find all posts View Profile Close D4D]

I have Toyota Finance on my Prado, 5 years for the main lease and now 18 months for the balloon. They offered me a stupid low % to refinance the balloon. It was cheaper to refinance and leave the balloon $ in the mortgage. I have found them very good to deal with. I have no experience with the future value offer. You may find with the cheap finance offers going around the dealer won't discount the vehicle as much as a market rate finance deal. They have to make money some how, so I would ask for quotes on both.

[Beach Advanced Member Find all posts View Profile Close Beach]

I have Toyota Finance on my Prado, 5 years for the main lease and now 18 months for the balloon. They offered me a stupid low % to refinance the balloon. It was cheaper to refinance and leave the balloon $ in the mortgage. I have found them very good to deal with. I have no experience with the future value offer. You may find with the cheap finance offers going around the dealer won't discount the vehicle as much as a market rate finance deal. They have to make money some how, so I would ask for quotes on both.

Can you fit after market accessories under the terms of the lease?

[D4D Addicted PP Member Find all posts View Profile Close D4D]

Can you fit after market accessories under the terms of the lease?

Of course

[xb74 Lurker Find all posts View Profile Close xb74]

Yeah the salesperson offered genuine accessories to me or mentioned a nearby Opposite Lock store they are friendly with if i preferred that direction.

The driveaway price of an auto diesel GXL is about 70k under this finance scheme and they are last years model. I am sure I saw 2014 GXLs for about 62K a couple months back. So there's that consideration also.

[fortunato Lurker Find all posts View Profile Close fortunato]

I've just bought a new GXL Prado on Toyota access with 1% finance. At a total of $200 interest over 4 years I found it hard not to take the offer.
I was looking at a 2nd hand 150 but at mid 50s purchase price, a new one for less per monthly repayments was better way to go.

Hard to beat a finance offer that good.

[Quigs Lurker Find all posts View Profile Close Quigs]

The problem is they charge you about $5000 more for the car. I negotiated a good price on the gxl and then said I might like to take up the 1% finance offer! they said that's fine but they would need to increase the price of the car by $5000. Needless to say I will pay the lower price and pay cash. If something seems too good to be true it probably is.

Quigs

[outbackswine Junior Member Find all posts View Profile Close outbackswine]

The problem is they charge you about $5000 more for the car. I negotiated a good price on the gxl and then said I might like to take up the 1% finance offer! they said that's fine but they would need to increase the price of the car by $5000. Needless to say I will pay the lower price and pay cash. If something seems too good to be true it probably is.

Quigs

If you can pay cash, put your cash in a high interest account, it will earn more than the 1% interest charge, and help pay some of the principal.
After 4 years, you will have offset the $4k they inflate the price by, and earned another $5k on top of that, making the total cost about $5k cheaper than paying cash.
That's what I'm doing....

I know many have had quotes using the 1% offer of upwards of $65k and that's on 13 builds, I got a Feb14 build (metallic) drive away @ $63200. Best I could get for a metallic 14 build with cash after hard haggling with about 30 dealers was $59250.