Can I get car finance on a Toyota?

Are you considering financing a Toyota? Whether you're looking to get a new or used Toyota, we're here to help you understand the financing options available.

Can I get car finance on a Toyota?

Yes, you can get car finance on a Toyota. Toyota dealerships offer their own finance solutions, but we offer competitive car finance deals for both new and used Toyota vehicles. Chances are, we can find you a better deal than if you go direct! 

There are a few finance options available to you, like hire purchase (HP), personal contract purchase (PCP), and personal loans. The most suitable car finance option for you will be determined by factors such as your financial position, credit rating, and the particular model you're interested in. 

If you’re not sure which is the best option, your dedicated account manager will help you make a decision that works best for you.

How does Toyota finance work?

To finance a Toyota, you have a few different options to choose from. Here’s a closer look at how these options work:

1. Hire purchase (HP): This is one of the most common car finance options. With HP, you pay an initial deposit followed by fixed monthly payments over a set period. Once all payments are made, the ownership of the car transfers to you. This option is straightforward and allows you to own the car outright at the end of the agreement.

2. Personal contract purchase (PCP): PCP is similar to HP but with lower monthly payments. At the end of the term, you have the option to pay a balloon payment to keep the car, return it, or trade it in for a new model. This flexibility makes PCP a popular choice for those who like to change their car every few years.

3. Personal loans: You can take out a personal loan from a bank or other financial institution to purchase your Toyota. This option provides you with the cash to buy the car outright, which means you’ll own the car from day one. Repayments are then made directly to the loan provider.

Is it hard to get finance for a Toyota?

Getting finance for a Toyota isn't tough in principle. But it depends on several factors, including your credit history, income, and financial situation. Here are some considerations:

1. Credit score: A good credit score significantly improves your chances of securing car finance. It indicates to lenders that you are a low-risk borrower who is likely to make payments on time. Typically, a score above 700 is considered good, but even those with lower scores can find financing options.

2. Income and employment: Stable employment and a steady income are crucial. Lenders will assess your ability to make monthly payments based on your income and job stability. Providing proof of employment and income, such as payslips or bank statements, can support your application.

3. Debt-to-income ratio: Lenders consider your existing debt relative to your income. A lower debt-to-income ratio suggests that you have sufficient income to cover new loan payments. It’s beneficial to pay down existing debts to improve this ratio.

4. Deposit: A larger deposit reduces the amount you need to borrow and can improve your chances of approval. It also shows the lender that you are financially responsible and committed to the purchase.

Can I get Toyota finance with bad credit?

Yes, it is possible to get Toyota finance with bad credit, although the terms may not be as favourable as for those with good credit. At Car Finance 247, we work with lenders who specialise in bad credit car finance. These lenders understand that not everyone has a perfect credit record and everyone's circumstances are different.

But the best thing you can do before you apply is try and improve your credit score where possible. Improving your credit score, although it may take time, can open up more favourable finance options. Paying off debts will help improve your credit rating. So will making timely payments and avoiding new credit applications before you apply for car finance.

Have you been declined for Toyota finance?

Being declined for Toyota finance can be frustrating, but it doesn’t mean you won’t be able to get finance elsewhere. If you’ve been refused car finance elsewhere, consider the following steps:

1. Check your credit report: get a copy of your credit report from major credit agencies such as Experian, Equifax, or TransUnion. Look for any inaccuracies or negative marks that may have contributed to the decline. Correcting errors and addressing negative items can improve your credit score.

2. Improve your credit score: Work on improving your credit score by paying off existing debts on time, and avoiding new credit applications. Consistent, responsible credit behaviour over time can lead to big improvements in your score.

3. Consider alternative lenders: Some lenders specialise in providing car finance to individuals with poor credit histories. These lenders may offer higher interest rates, but they provide an opportunity to finance a car when traditional lenders decline.

4. Increase your deposit: A larger deposit reduces the risk you pose and can make your application more attractive. Saving up for a larger deposit can help offset a lower credit score and shows financial responsibility.

5. Guarantor loans: If you have a friend or family member with a strong credit history who is willing to act as a guarantor, this can improve your chances of securing finance. The guarantor agrees to make payments if you are unable to, providing additional security for the lender.

Can I get used Toyota car finance?

Yes, you can finance a used Toyota. Financing options for used cars are similar to those for new cars, and many lenders offer competitive rates for pre-owned vehicles. 

Just bear in mind that interest rates might be a bit higher for used cars, and you might have a shorter loan term, due to car depreciation.

What credit score do you need for Toyota car finance?

There isn't a fixed credit score required for Toyota car finance, as it varies by lender. However, a good credit score (typically 700 or above) will generally secure better interest rates and terms. Lenders also consider other factors, such as your income, employment status, and financial history.

Scores between 600 and 699 are considered fair. While you may still qualify for finance, the interest rates may be higher, and the terms less favourable. 

If your score is below 600, you might find it more challenging to secure finance, and if approved, you may face higher interest rates and stricter terms. However, our specialised lenders and alternative financing options can still provide opportunities.

What is the lowest credit score to get a Toyota on finance?

While there is no specific lowest credit score, applicants with scores below 600 may find it more challenging to secure finance. 

If you have a low credit score, don’t worry. Some of our trusted lenders specialise in bad credit car finance and could still offer you a deal that works for you. 

You might also have better luck being approved if you consider options like a guarantor loan, where a third party agrees to pay the loan should you be unable to. This helps you look like less of a risk to lenders and could mean they're more willing to lend to you.

Can I pay off my Toyota finance early?

Yes, you can usually pay off your Toyota finance early. This process is known as early settlement.

Paying off your finance deal early can reduce the total interest paid and free you from monthly payments, so it could save you money in the long run. Just be sure to contact your lender to check if there are any early repayment fees for settling the finance before the end of the term.

Ready to get your Toyota? Apply for a quote now to get started! Or, if you have any further questions or need personalised advice, give us a call.