Toyota Insurance and Loans

[Dean Anderson]

Anyone with experience with Toyota Insurance and Loans?

Their loans are below 5% variable at present and below what any of the banks are quoting.

Question 1
Anyone with experience of erratic changes in interest rate &/or are they Bad/Okay/Good/Brilliant etc. experiences appreciated?

.
Toyota insurance is comparable in price to the other majors.

Question 2
Anyone with experience in how they deal with claims/service? Bad/Okay/Good/Brilliant etc. experiences appreciated?

 

[Fabulous]

All I would say is that the rate is not everything. I work in finance and believe the most important thing is the repayments, not the rate, you never know what fees are in the payments.

Just my thoughts

 

[Dean Anderson]

$5 monthly fee.
$350 Establishment fee
$615 Dealer fee

Still looks better than a secondary finance supplier to me.

Will have to look into state gov't salary sacrificing before a decision is made but...excluding novated leases.

 

[bigcol]

I've never had many problems with Toyboata for when the 100 series needed servicing

cost was the major factor in going to my local man for the log book servicing

one thing they never said, if you keep getting it serviced at toyboata (gouged) the new car warrenty stays in effect..............

mine lasted 8 years, before moving to said local man

 

[Crusty181]

Anyone with experience with Toyota Insurance and Loans?

Their loans are below 5% variable at present and below what any of the banks are quoting.

Question 1
Anyone with experience of erratic changes in interest rate &/or are they Bad/Okay/Good/Brilliant etc. experiences appreciated?

.
Toyota insurance is comparable in price to the other majors.

Question 2
Anyone with experience in how they deal with claims/service? Bad/Okay/Good/Brilliant etc. experiences appreciated?

Isnt the interest fixed??. I bought my Navara during a 1% deal, and its fixed over the 30months and there was no monthly or hidden fees that I could find. Added he 1% to the total, divided by 30 and it equals my monthly payment.

They originally added $1000 setup, monthly fees, and some exit fees apparently because it was through my company ..... so outsmarted them and bought in my name and personal ABN and all those costs were removed. Bit sneaky

 

[Fabulous]

Yes, the rate is fixed, but some financiers can do some wonderful things........... I would compare the repayments and if they differ enquirer as to why

 

[Crusty181]

Yes, the rate is fixed, but some financiers can do some wonderful things........... I would compare the repayments and if the differ enquirer as to why

I was probably lucky that with a relatively short loan offer period and relatively round finance amount and round payment figures, it just seemed odd from the outset. Bit like $1000 loan over $10 months, equalling monthly payment of $137 .... huh

 

[TTBRIDGE]

Yes, and Yes.

Our 200 is with Toyota, the finance rate is fixed for the life of loan. if you are under 5% that is awesome. I had to price shop them to get a decent rate. But to their credit they matched it and it was a very easy experience at hand over. My payments have not changed in 2 years.

As for insurance, again they were actually the cheapest when i rang around. I did have to claim, i rang them to lodge, they advised where i could take it (or choose my own) the once they selected were great. Drove in, payed my excess and drove out again. Returned 2 days latter and it was done. The repair was not quite right, so when it went back i was provided a car. Only made 1 phone call and the rest was done for me.

I am still with Toyota insurance, and the finance has been fine, so surprises. If the rate (and the monthly out of pocket) is competitive i would have no concerns with going with either.

Good luck with it all.

 

[TRAKADU]

I can only answer the Finance side of things as I am a Finance Broker myself (The Good one, not the bad guy)

The current interest rates for motor vehicles (from major banks and finance companies) are in the vicinity of 4.2% to 5.0%. So if you are getting below 5% (All Up) then it is a good rate. The trick that the most "Bad Guys" are doing is advising the "base rate" to customers. The base rate which is the rate before any fees and brokerage are added on. Your repayment is NOT based on the base rate. It is calculated on what we called "all up rate" which is obviously higher than the base rate once all of those fees are added. Most people get sucked into the Base Rate thinking that they are getting a great deal but their actual repayments can be as high as the All up Rate. So next time when you are quoted on repayments ask them what is the all up rate or customer rate? (and notice how quickly their face goes red ). Some can charge exorbitant fees as their brokerage or fee for service. Having worked in the industry for over 12 years I know most people don't understand a lot about finance and these guys get away with it very easily...

Interest rates are generally fixed throughout the term of the loan and they do not vary like your home loans. Motor vehicle loans are divided into two major categories:-

1. Commercial Loans (Chattel Mortgage, Hire Purchase, Lease. Chattel Mortgage being the most popular type of loan)

2. Consumer Loans (These loans for vehicles that are predominantly used for personal use (49% or less)

It is always worth your while to shop around before you commit as you will be amazed with the variance in rates and repayments by different providers. The Brokers' rates are very competitive as they receive volume discounts on rates from Banks and generally can be cheaper than the bank's rate itself.


Hope this helps.

 

[Fabulous]

I can only answer the Finance side of things as I am a Finance Broker myself (The Good one, not the bad guy)

The current interest rates for motor vehicles (from major banks and finance companies) are in the vicinity of 4.2% to 5.0%. So if you are getting below 5% (All Up) then it is a good rate. The trick that the most "Bad Guys" are doing is advising the "base rate" to customers. The base rate which is the rate before any fees and brokerage are added on. Your repayment is NOT based on the base rate. It is calculated on what we called "all up rate" which is obviously higher than the base rate once all of those fees are added. Most people get sucked into the Base Rate thinking that they are getting a great deal but their actual repayments can be as high as the All up Rate. So next time when you are quoted on repayments ask them what is the all up rate or customer rate? (and notice how quickly their face goes red ). Some can charge exorbitant fees as their brokerage or fee for service. Having worked in the industry for over 12 years I know most people don't understand a lot about finance and these guys get away with it very easily...

Interest rates are generally fixed throughout the term of the loan and they do not vary like your home loans. Motor vehicle loans are divided into two major categories:-

1. Commercial Loans (Chattel Mortgage, Hire Purchase, Lease. Chattel Mortgage being the most popular type of loan)

2. Consumer Loans (These loans for vehicles that are predominantly used for personal use (49% or less)

It is always worth your while to shop around before you commit as you will be amazed with the variance in rates and repayments by different providers. The Brokers' rates are very competitive as they receive volume discounts on rates from Banks and generally can be cheaper than the bank's rate itself.


Hope this helps.

well said

 

[Mick]

Just my thought if you could do it through your house loan depending on your home loan rate, this would also depend on what rate the dealer actually offers you.
Your home lone redraw could be a better choice?
This would also depend on if you have a home loan and be able to redraw.

 

[Dean Anderson]

Bit of other research and things get a little simpler. Can't salary package a vehicle in my situation if the payload is over 1000kg cause it's classified as commercial then......B.S. but those be the rules.

After my incident with the Ranger we want to ensure we keep things legal. Big difference between a 50k and 90k car if it's written off, and I now know how much insurance companies don't like writing things off.

I fixed the home loan a couple years back so things get difficult there. It's easier to do the car loan separate.

Tis only money...............

Have recently had a friend have a brain tumour removed and it makes you realise that life can end or be drastically shortened at any time. My priority is enjoying my travels with my family now; and a good car is part of that.

My old man (at 85) will of course have other things to say about saving for retirement............But that doesn't help me if for some reason I don't get to retire..........

Live life and enjoy as much as you can while you can.

 

[Crusty181]

Bit of other research and things get a little simpler. Can't salary package a vehicle in my situation if the payload is over 1000kg cause it's classified as commercial then......B.S. but those be the rules.

After my incident with the Ranger we want to ensure we keep things legal. Big difference between a 50k and 90k car if it's written off, and I now know how much insurance companies don't like writing things off.

I fixed the home loan a couple years back so things get difficult there. It's easier to do the car loan separate.

Tis only money...............

Have recently had a friend have a brain tumour removed and it makes you realise that life can end or be drastically shortened at any time. My priority is enjoying my travels with my family now; and a good car is part of that.

My old man (at 85) will of course have other things to say about saving for retirement............But that doesn't help me if for some reason I don't get to retire..........

Live life and enjoy as much as you can while you can.

Carpe Diem .... although when I was 18yo Im kinda glad I didn't decide then to just bugger it, and seize the day. Things would have been slightly more depressing at this juncture in my life if I did. Im lucky to this point that I managed to play some good hands and bumble my way through life to now be blessed enough to be able to smell the roses. As you say @Dean Anderson, some good folk get done over by life and miss the glory days

 

[TRAKADU]

Just my thought if you could do it through your house loan depending on your home loan rate, this would also depend on what rate the dealer actually offers you.
Your home lone redraw could be a better choice?
This would also depend on if you have a home loan and be able to redraw.

Something to think about when you purchase a car through your home loan or use your redraw funds - You would be paying interest over let's say 15 to 20 years on the mortgage as opposed to your normal 5 year car loan term. As a result, you would be paying a lot more in interest for your car over 20 years. For example, a $50,000 ute, you would end up paying over $25,000 in interest (over 20 years assuming that's how long it takes for you to payout the mortgage) in comparison to a car loan over five years which would be approx. $5,000 in interest... sorry if I confused you guys with this... but this is a fact...

Thanks Trakadu

 

[Crusty181]

Something to think about when you purchase a car through your home loan or use your redraw funds - You would be paying interest over let's say 15 to 20 years on the mortgage as opposed to your normal 5 year car loan term. As a result, you would be paying a lot more in interest for your car over 20 years. For example, a $50,000 ute, you would end up paying over $25,000 in interest (over 20 years assuming that's how long it takes for you to payout the mortgage) in comparison to a car loan over five years which would be approx. $5,000 in interest... sorry if I confused you guys with this... but this is a fact...

Thanks Trakadu

Good advice @TRAKADU. I suppose its important if you tap into your mortgage to treat that additional car component as a separate short term loan and make extra mortgage payments based on that to reduce the extra funds in a 5 or so year period. That way you'll get the benefit of low cost, cheap rate without the 25 year penalty.

 

[TRAKADU]

Good advice @TRAKADU. I suppose its important if you tap into your mortgage to treat that additional car component as a separate short term loan and make extra mortgage payments based on that to reduce the extra funds in a 5 or so year period. That way you'll get the benefit of low cost, cheap rate without the 25 year penalty.

Spot on Crusty. If you have the discipline and self control when it comes to money then tapping into the mortgage can be a good idea. (But you have to work the maths out and pay the loan off in set time). The issue is, the minute we are paying less than what we are supposed to be our wishlist gets bigger and bigger..

 

[Mick]

Yes as I said a lot of factors play into if you redraw against you home
As i said it was just a thought as another option not necessarily the best as Trakadu said as long as you used it as a short term loan it probably wouldn't be so bad.

 

[bigcol]

Something to think about when you purchase a car through your home loan or use your redraw funds - You would be paying interest over let's say 15 to 20 years on the mortgage as opposed to your normal 5 year car loan term. As a result, you would be paying a lot more in interest for your car over 20 years. For example, a $50,000 ute, you would end up paying over $25,000 in interest (over 20 years assuming that's how long it takes for you to payout the mortgage) in comparison to a car loan over five years which would be approx. $5,000 in interest... sorry if I confused you guys with this... but this is a fact...

Thanks Trakadu

excuse my ignorance (one of the reasons I am poor)
but
to me, said $50,000 ute, at 5.5% interest over 20 years,
would be a hell of a lot cheaper than
$50,000 ute at 14% (or what ever it is - I pay cash for cars no HP for me) interest over 5 years

you would be paying an extra $20 per month (dunno exact figures) V's $500 per month for HP........................


maybe I'm just not smart enough

 

[Dean Anderson]

We have found that no one gives a rats about the equity in the home loan (rental; at the moment). The old days where you had to have a guarantor or equity to do anything has disappeared...Most lenders are quiet happy with the last three pay slips if your income is Okay, and you have been with the same employer for a few years. ( maybe I think this cause I'm not a financial risk to them anymore and they have records???).

I didn't even realise who my car loan was with. I thought it was with Suncorp, but they said it wasn't theirs and directed me to ANZ who said it wasn't theirs, who directed me to Esanda finance............As if I cared originally...........It's the bottom $$$ rate that matters.

Anyway.........we are still to decide if we go Novated Lease (Gov't) or just buy the vehicle with a loan. If we lease we have 45k funds available for investment and have to worry about $27k residual in 5 years time.

What we do in the meantime is all about the market....

Life was so simple when I was broke and the only worry was what two $6 bottles of red I was going to drink on a Friday night.

Have I really improved my standard of living???? Or have I just improved my Income???

 

[bigcol]

Have I really improved my standard of living???? Or have I just improved my Income???

good question that............