Finance question

M

mryan8517

New member
Ok so I have been lurky on this site for a while now. So long that I infact went out and bought a

2008 black Sport 4X4
Sticker 36,400
out the door 32,200
2.9 for 60 months

So now for my question. Toyota has 0.9 for 60 months on 4runners now. I have only made 1 payment. Will Toyota change my finance rate is I call them and ask?

Mods done already
Tinted windows
sound system
Kenwood DNX 8120 Nav
Focal speakers in doors
Alpine amp
JL Audio stealth box
This system sounds amazing.
 
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Sure they will... UP! but never down. 2.9% is a fantastic rate! Clearly a promotional rate to entice folks in a tightening economy to keep buying, especially cars. Do they offer that rate on all of their cars, or just the ones that are having trouble selling due to the current gas price situation?

Honestly, I don't know how folks can buy new cars these days. They've become so expensive, yet the typical term still remains at 5 years. I finance mine at 6 years, but I also cap the prices around the $20-$22k level and usually buy used to avoid the initial depreciation hit, but lose the new car/my car from day 1 feeling. Some say I am flipped over with terms that long, but I say when you're talking about total purchase prices of that amount, it's not that bad. I'd rather loose 20% of whatever the balance is at the time of selling it, then put 20-30% down up front to get acceptable payments for my budet. 20% of $10k is a lot less than 30% of purchase price. And I've rarely ended up taking hits that large before.

If the 2.9% isn't working for you, then you can try a local credit union for a 6 year term. As an example: assuming 100% financing, the payment on the 2.9% for 5 years = 8.79% for 6 years. They're not that high. USAA has great rates for 6 years too, if you're a member. BUT, you need to be comfortable with having the car for a few years before thinking about replacing it for 6 year terms to work. Usually 3 1/2 years...
 
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nc211 said:
Sure they will... UP! but never down. 2.9% is a fantastic rate! Clearly a promotional rate to entice folks in a tightening economy to keep buying, especially cars. Do they offer that rate on all of their cars, or just the ones that are having trouble selling due to the current gas price situation?

Honestly, I don't know how folks can buy new cars these days. They've become so expensive, yet the typical term still remains at 5 years. I finance mine at 6 years, but I also cap the prices around the $20-$22k level and usually buy used to avoid the initial depreciation hit, but lose the new car/my car from day 1 feeling. Some say I am flipped over with terms that long, but I say when you're talking about total purchase prices of that amount, it's not that bad. I'd rather loose 20% of whatever the balance is at the time of selling it, then put 20-30% down up front to get acceptable payments for my budet. 20% of $10k is a lot less than 30% of purchase price. And I've rarely ended up taking hits that large before.

If the 2.9% isn't working for you, then you can try a local credit union for a 6 year term. As an example: assuming 100% financing, the payment on the 2.9% for 5 years = 8.79% for 6 years. They're not that high. USAA has great rates for 6 years too, if you're a member. BUT, you need to be comfortable with having the car for a few years before thinking about replacing it for 6 year terms to work. Usually 3 1/2 years...
Click to expand...

I AGREE W/ HIM... I BUY USED, BESIDES ITS A TOYOTA!!! THESE THINGS LAST FOREVER!!! AND LASTLY DON'T FINANCE BUY OUT CASH!!! THEN YOU DON'T HAVE TO WORRY ABOUT INTEREST...
 
4runDiZZLe said:
I AGREE W/ HIM... I BUY USED, BESIDES ITS A TOYOTA!!! THESE THINGS LAST FOREVER!!! AND LASTLY DON'T FINANCE BUY OUT CASH!!! THEN YOU DON'T HAVE TO WORRY ABOUT INTEREST...
Click to expand...

i got my 05 sr5 for $13200 and it came out to $14600 OTD...
BLUE BOOK IS $16500 which would be $18000+ OTD... buying cash will make negotiations go by easier...
 
...assuming someone has that much cash to spend at once, or is willing to? I much prefer to use other people's money, and allow my little stock pile to sit in my money market, earning slightly more interest than the interest rate of the loan, and pay as I go, instead of spend it all at once and let it work for someone else. But, that's just my personal preferrence, and both sides have very valid points! But, you've gotta' have the cash to begin with.
 
Let me ask you this. What incentive would they have to give you even better financing than they already have? You signed a contract at 2.9%(same as I did in '06). Giving you a better rate would be even more money out of their pocket.
 
nc211 said:
... allow my little stock pile to sit in my money market, earning slightly more interest than the interest rate of the loan.
Click to expand...

With interest rates so low these days, it would be difficult to make more than a few dollars in interest over the interest on an auto loan, no?
 
Yes...... 2.9% is a killer rate. I got my runner at 3.9% and was ecstatic. My Credit Union couldn't come close to touching that. But the way life works is, "No matter how good you have it.... some one always has it better!!"

I gotta say, I agree with all the leveraging guys. If you can aford to use other peoples money while your's sits around and gets fat, then have at it. I love knowing that I've had my truck from day one. and knowing how long a toyota lasts me and retains value, I will be happier than a pig in poo when its paid off!

I say congrats on the rate, and congrats on the ride!
 
Even Steven said:
With interest rates so low these days, it would be difficult to make more than a few dollars in interest over the interest on an auto loan, no?
Click to expand...

True, however we're getting a really good rate these days through our credit union on the money market account. But, for me, it's not so much about making the money on the spread difference, as it is about the timing of having the cash handy if I would need it. My income can handle the payments just fine, but I'm certainly not swimming in the ole' green backs either. God forbid if an emergency came up that required a few thousand dollars in cash, I know I have it. And with the interest on the loan, matched against the money market rate, I've reduced the effective interest rate on the loan to about .03%, which is good enough for me. The trick however is to keep the savings account at, or above, the original loan amount (preferrably), but certainly at the same outstanding balance.

Down side to it though is that you do spend more for the car on a whole with financing it. It's just the classic Time Value of Money fundamentals. A $1 today, is worth more tomorrow. Or, that's how it's supposed to be anyway, but not looking so these days... :(

But, if I had some serious cash reserves and wouldn't feel the pinch of buying outright, then I'd certainly take that route. But, that ain't gonna happen for several more years. If all plays out like I hope on my career path, it'll take about 10 more years to beable to make those kind of buys....hopefully..
 
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