How to finance a Toyota

If you've got your eye on a new or used Toyota, there are several finance options available.

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Toyota is one of the world’s largest car manufacturers with a huge presence across the UK.

Its large range of finance options certainly contributes to its popularity. The Japanese manufacturer offers several finance packages, making it easy for motorists to pay back their loan in a way that suits their desires and financial circumstances. There are several third-party options worth considering as well.

Below, we explore all of the financing options available, so you can decide which is most suitable for you.

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Warning: late repayments can cause you serious money problems. See our debt help guides.

How can I finance a Toyota?

You can either arrange a finance deal directly through Toyota or take out a loan from a bank, credit union or online lender.

When considering the best option for your needs, ask yourself whether speed or low interest is your biggest priority. A third-party loan may be cheaper than the deals offered by Toyota, but arranging these can be more time consuming. After all, you’ll need to compare lenders, then research to find out what rates and terms you may be eligible for.

What options does Toyota offer?

If you’re looking for the fastest way to get on the road in your new car, financing through an authorised Toyota dealer might be your best bet. This can be especially useful if you already know what model and accessories you want, as you’ll then be able to negotiate your car price and loan interest rate at the same time.

Toyota offers four financing options, so there’s plenty of flexibility to arrange the best deal for your needs. For each, the term of your deal could last between 12 and 60 months depending on your circumstances.

The Hire Purchase package allows you to keep the car at the end of the agreement. There are several leasing deals which have you return the vehicle. Meanwhile, the Access Toyota package lets you choose between owning or returning the car as your agreement is ending.

Read on to discover how each package works.

  • Hire purchase. With this deal, you choose the size of your deposit, then cover the rest of the loan using fixed monthly repayments. Once your term ends, you own the car. There is no large final payment.
  • Toyota Contract Hire. This is a simple package to hire a Toyota for an extended period. Choose the term and the maximum annual mileage, and Toyota will set your initial and monthly rental fees. The larger your initial payment, the lower your monthly charge. You’ll return the vehicle at the end of your agreement, and there’ll be no extra charges presuming you meet your mileage and wear-and-tear requirements.
  • Toyota Leasing. There are two flexible leasing packages available. With a Full Payout Lease, you must sell the car to a third party at the end of your agreement. You’ll have 95% of the proceeds returned to you as a refund of rentals. With a Balloon Lease, you’ll make a large “balloon payment” at the start of the agreement. When you sell the car to a third party at the end of the agreement, the proceeds are used to repay the balloon amount. If the proceeds are in excess of the balloon amount you’ll receive 95% of the excess, minus VAT. If the sale of the car doesn’t cover the balloon amount, you’ll have to repay the shortfall.
  • Access Toyota. This is similar to a hire purchase albeit with more flexibility and lower monthly repayments, as a portion of the car’s value is deferred until the end of your agreement. When your term ends, you have the option to pay this larger final payment and own the car, part-exchange it, or return it with no extra payments. At the start of your deal, you’ll be set a Guaranteed Future Value for your car, guaranteeing how much it will be worth with Toyota Financial Services at the end of your agreement. This protects you against falling trade-in values. You may also be given the option to refinance your final payment.

What third-party options are there to finance a Toyota?

  • Car finance companies. There’s a host of third-party lenders that will offer an auto loan for your Toyota. With these loans, you’ll usually use the vehicle as collateral, meaning your car will be repossessed if you fall behind on repayments. Unsecured loans may be available with some lenders, but these tend to come with higher interest rates and less competitive terms.
  • Toyota dealership finance. Toyota dealerships may offer different finance deals to those explained above. Dealership staff will be able to explain the differences for you.
  • Personal loans. A personal loan could be the most cost-effective product to fund your purchase of a Toyota vehicle. You could secure the best rate by using the car as collateral or adding a guarantor. Unsecured personal loans are unlikely to be as competitively priced as an auto loan which uses your vehicle as collateral.

Does a new Toyota come with a warranty?

Every new Toyota sold in the UK comes with a mechanical warranty for 5 years or 100,000 miles, whichever comes first. This warranty covers any mechanical fault caused by a manufacturing defect, and there are no mileage limitations for the first year.

You’ll also get a 12-year anti-corrosion and perforation warranty, plus a 3-year paintwork and surface rust warranty. Extended warranties are available. Terms apply.

Approved Used Toyota vehicles come with a 12-month comprehensive warranty, including Toyota Roadside Assistance.

Average insurance costs for driving a Toyota

Frequently asked questions

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