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Toyota Finance Review

Our comprehensive review covers how Toyota Finance works, its costs, pros and cons, dealership-specific offers, alternatives, and answers to frequently asked questions.
Updated 1 January 2025

Summary
  • Toyota Finance is pivotal in making Toyota vehicles accessible to thousands of New Zealanders annually. As a part of Toyota Financial Services, one of the world's biggest lenders, Toyota Finance provides car finance similar to that offered by banks and specialist lenders.
  • Whether you're buying a new Toyota or a used Toyota, Toyota Finance works with its dealers to offer fixed-term loans.
  • Toyota Finance is connected to Toyota dealerships nationwide, simplifying the process of securing finance directly at the point of sale. While this offers convenience, given that customers can arrange financing and vehicle purchases in one seamless transaction, the interest rates and fees may not be the best available. For this reason, we suggest getting quotes from leading car lenders before visiting a Toyota dealership so you have something to compare and limit the risk of overpaying.
  • If you're buying a Toyota and plan to finance it, you do not have to use Toyota Finance. This review explains what Toyota Finance offers, but it's only one of many options - our car loan comparison guide has alternatives.
  • Important: Toyota Finance also offers vehicle lease options, which may suit some buyers depending on their needs. For the purposes of this review, we focus specifically on new and used Toyota car loans. For more details about leasing, visit our comprehensive guide to vehicle leasing and Toyota Finance's official website. 

To help explain Toyota Finance in detail, our review covers:
Know This First: Finance Deals Differ Between Toyota Dealerships
While Toyota Finance is a centralised offering backed by Toyota Financial Services, the specific promotions and terms can vary significantly between dealerships. For example:
  • One dealership might offer 1% finance on pre-owned Toyotas under $30,000, as shown in the example from Ilam Toyota in a historical promotion.
  • Another dealership might advertise 4% finance on Toyota Certified vehicles, paired with additional benefits like extended warranties, AA roadside assistance, and free Warrant of Fitness (WOF) checks for four years, as seen in the example from Miles Toyota in a historical promotion.
  • These variations arise because each dealership has autonomy in structuring promotions to attract local customers. Factors such as dealership location, inventory levels and customer demand influence the deals they offer. Furthermore, promotions are often limited to specific vehicles or stock, so confirm whether the deal applies to the car you're interested in.
  • Given the differences in car finance offers even with Toyota Finance, it's important to shop around and compare car finance offers - a Toyota dealership's advertised rate may seem appealing at first. Still, the fine print reveals the total cost, and this is the cost that matters the most.
  • If a dealer insists that you use Toyota Finance and is reluctant to entertain another lender, this is often because they receive incentives for promoting it. However, the interest rates offered may not always be the most competitive. This is why comparing car finance is essential to get the best deal.

How Toyota Finance Works, What it Costs and What Makes It Unique​

Toyota Finance provides car loans for new and used Toyota vehicles purchased through Toyota dealerships, as well as boats and marine (which we don't focus on for the purposes of this review).

For New Toyota Vehicles: Toyota Finance allows customers buying a new Toyota to secure a loan directly through the dealership, simplifying the financing process as Toyota Finance is integrated into the car-buying experience. However, this means no alternatives are offered, which means there is a risk the interest rate won't be market-leading.

Generally, Toyota Finance offers:
  • Fixed-Rate Loans: The interest rate is locked for the life of the loan, ensuring your repayments stay consistent throughout the term.
  • Flexible Terms: Loan terms range from 12 to 60 months, allowing you to make repayments to suit your cash flow.
  • Interest-Free and Low Deposit Options: Depending on the promotion, which will vary between dealers, deposits may be negotiable, or you may benefit from low-interest or even interest-free financing offers.
  • More details can be found on the Toyota Finance website.

For Used Toyota Vehicles: Toyota Finance also supports customers purchasing pre-owned Toyotas, whether certified through the Toyota Certified Used Vehicle program or standard used cars from the dealership's stock. Financing for used vehicles works like new vehicles, with fixed-rate loans and repayment plans. However, the interest rates can vary slightly compared to new vehicle loans due to vehicle age, mileage, and condition.

Toyota Certified Used Vehicles usually have added benefits like warranties, AA roadside assistance, and free WOF checks, regardless of whether Toyota Finance is involved. This means you can finance the car from another lender and still get the vehicle protection benefits.

Know This: Some dealerships offer special finance rates for used vehicles, such as 1% or 4% finance deals, making financing a pre-owned Toyota more attractive. However, the rates are not always for the life of the loan, and there are limits to what cars (if any) the discounted interest rates apply to. More details can be found on the Toyota Finance website.

Toyota Finance's Interest Rates Explained

  • Toyota's finance calculator overviews the range of offers with specific cars. In contrast, the Toyota personalised finance offer calculator gives a suggested interest rate (but this is not an offer and is subject to change as lending criteria are established).
  • We understand the interest rates are between 11.30% p.a. and 12.50% p.a. for strong borrowers. An establishment fee of $400.00 and a PPSR fee of $9.20 applies to any successful loan approval and drawdown.
  • Our car loan comparison shows how Toyota Finance's interest rate and fees compare to the rest of the market.​
  • More details about Toyota's latest finance offers can be found on the Toyota Finance website.

Toyota Finance Pros and Cons

If you're considering financing your Toyota with Toyota Finance, we list the pros and cons to be aware of.

Pros
  • A Convenient and Seamless Process: Financing is arranged directly through the dealership, allowing you to choose and finance your Toyota in a single transaction without dealing with multiple lenders. However, as outlined below, convenience can come at a long-term cost.
  • Exclusive Promotions and Offers: Toyota Finance frequently collaborates with dealerships to offer unique promotions, such as low-interest rates, interest-free periods, or low-deposit options. This is a strong selling point and attractive to Toyota buyers when the deal is cost-effective and competitive.
  • Fixed Interest Rates and Flexible Loan Terms: As is standard with car lending, the interest rate is fixed, and the loan term ranges from 12 to 60 months to suit their financial situation.

Cons
  • Interest Rates May Not Be Competitive: While convenient, Toyota Finance rates are not guaranteed to be market-leading. Given the risk and the costs involved, comparing the market before committing to any Toyota Finance offer is essential.
  • Limited to Toyota Vehicles: Toyota Finance can only be used for vehicles purchased through Toyota dealerships.
  • Dealership-Specific Promotions May Have Restrictions: Special rates, such as 0%, 1% or 4% finance (or any other offer), may only apply to specific vehicles, stock, or terms and are often unavailable for the entire loan term.
  • No Alternative Options Offered: Financing through Toyota Finance means you're tied to their terms and rates, as dealerships generally don't provide quotes from alternative lenders.
  • Higher Rates for Used Vehicles: Interest rates for pre-owned vehicles are typically higher than those for new vehicles, reflecting factors such as vehicle age, mileage, and condition.
  • Promotions May Be Limited: Advertised low rates may only apply under very specific conditions, increasing the overall cost of financing if you don't qualify. For this reason, it's essential to read any Toyota Finance offer in detail.

What to Be Aware Of Before Signing Up

Before signing any agreement with Toyota Finance (or any other car lender), you must understand what you're agreeing to. Our outline below is published to help you avoid expensive car debt.

Step 1 - Read the Fine Print on Promotions
Toyota Finance promotions, such as 0%, 1% or 4% interest rates, can be appealing but often come with specific conditions. These might include:
  • Limited terms (e.g., the low rate may only apply for 12 months).
  • Restrictions on vehicle eligibility (e.g., limited to certain models or stock).
  • Requirements for large deposits or balloon payments.

Our Tip: Always confirm the total cost of the loan, including any fees and conditions, before signing. Don't assume the headline rate applies to every vehicle or the full loan term.

Step 2 - Compare Rates and Total Costs
Toyota Finance interest rates may not always be the most competitive on the market. While they offer convenience, this often comes at a premium compared to third-party lenders. Additionally, fees such as establishment costs and ongoing account fees can add to the overall cost of the loan.

Our Tip: Our Car Loan comparison guide lists many trusted lenders who operate all over New Zealand. A slightly lower interest rate, for example, 2% or 3% p.a., can save you thousands over the life of the loan.

Step 3 - Understand Your Loan Terms
Loan terms with Toyota Finance typically range from 12 to 60 months; the shorter the term, the higher the monthly repayments. Conversely, longer terms can reduce monthly repayments but increase the total cost of the loan due to accumulated interest.

Our Tip: Please be careful and ensure you can afford what you'll owe every week, fortnight or month on the repayment schedule. Do not agree to a car loan if you are easily financially stretched.

Step 4 - Beware of Balloon Payments
Some Toyota Finance loans may include balloon payments (a lump sum due at the end of the loan term), which can reduce monthly repayments but leave you with a significant amount to pay later.

Our Tip: If a balloon payment is part of the deal, ensure you understand how much it will be and plan for it well in advance - finding $10,000 (or more) at short notice may be impossible.

Step 5 - Understand and Consider the Additional Fees
While not as expensive as interest on a car loan, application fees and early repayment penalties add up, affecting the total cost of your loan.

Our Tip: Ask for a full breakdown of fees upfront. Ensure you're clear on what you'll pay over the loan term.

Step 6 - Assess Dealer-Specific Offers Carefully
Different Toyota dealerships set their own promotions; this makes it important to approach offers cautiously and ensure the deal is right for you.

Our Tip: Shop around, and don't be afraid to negotiate or walk away if the terms aren't right.​

Alternatives to Toyota Finance

​Our extensive consumer guide to car loans compares banks, credit unions, specialist motor lenders, car loan brokers and personal lenders.

Before signing up to any car loan, whether or not it's with Toyota Finance or another lender, we suggest reading the following must-know tips and facts: 
  1. Get car financing agreed in principle before you starting looking for a car – you’ll save the most on fees and interest costs and know exactly what your budget is. You can also negotiate the price you pay like a cash buyer - it makes everything easier.  
  2. Without question, the worst place to get financing is at a car dealership just after you’ve decided on a car. You have no bargaining power, nor will you be familiar with other options in the market.
  3. The cheapest interest rate deals will be on secured loans – this means the lender has a right to sell your car if you can’t make the repayments (exactly like a bank can sell a house if the mortgage isn’t repaid). 
  4. To pay the least amount in car financing, you’ll need the lowest interest rate, lowest application fees and the shortest term with the most frequent repayments (i.e. weekly vs monthly). i.e. If your loan is $10,000 and your interest rate is 15%, you’ll pay $4,000+ in interest if you pay it back over 5 years, but only $1,600 if you pay it back in 2 years.
  5. Most car finance terms are up to 5 years in length. Early repayment will slash the interest costs, but check the lender’s fees and charges to know how much that will cost.
  6. Avoid adding a car loan to your mortgage if you can help it – you’ll pay interest on the amount for a lot longer which costs you more in the long run. For example, a $10,000 loan at 7.50% over 25 years is much more costly than a $10,000 at 12.95% over three years.
  7. Missing repayments gets costly – lenders charge $25+ for each missed payment, so prioritise your repayments.  
  8. See our cheapest car finance and loan tables to pick from the best deals currently available - and visit our personal loans guide to compare

Frequently Asked Questions

Can I negotiate the interest rate or terms with Toyota Finance?

It depends - while Toyota Finance promotions are typically non-negotiable, the dealership may offer incentives such as reduced fees or adjustments to loan terms to secure your business. However, you'll still want to compare rates elsewhere to ensure the offer is competitive.

Do I need to take Toyota Finance to buy a Toyota vehicle?

No, you're not obligated to use Toyota Finance when purchasing a Toyota vehicle. While dealerships often promote Toyota Finance, you can finance your car through other lenders if they offer better terms or rates.

Are the promotional interest rates (e.g., 1% or 4%) available for all vehicles and loan terms?

No, promotional rates often come with conditions. These rates may only apply to specific vehicles, limited stock, or short low-interest periods (e.g., 12 months, not the full loan term). Always read the fine print and confirm the total cost of the loan (e.g. the cost of what you're borrowing, the interest costs and fees all added together) before proceeding.

Can I refinance a Toyota Finance loan with another lender?

You can refinance your Toyota Finance loan with another lender if you find a better rate or more favourable terms. Refinancing can reduce your total borrowing cost, but it's important to account for any fees or penalties from Toyota Finance. Our car refinance guide has more details.

What is a balloon payment, and should I consider it?

A balloon payment is a lump sum due at the end of the loan term. It can lower your monthly repayments but leaves you with a significant amount to pay at the end. If you're considering a loan with a balloon payment, ensure you have a clear plan to cover it when the time comes.

Are there additional fees with Toyota Finance loans?

Yes, Toyota Finance loans typically include an establishment fee (e.g., $400) and a PPSR fee ($9.20). Other fees may apply, such as account servicing charges or early repayment penalties. Request a full fee breakdown before signing up.

How does Toyota Finance determine my interest rate?

Interest rates with Toyota Finance depend on various factors, including your credit profile, deposit size, loan term, and the specific vehicle being purchased. Using Toyota's personalised finance offer calculator can provide an estimate, but the actual rate will depend on the final loan approval.

Can I combine Toyota Finance with a trade-in?

Yes, Toyota dealerships allow trade-ins, and the trade-in value can reduce the amount you need to borrow through Toyota Finance. Confirm the trade-in value with the dealership before finalising your loan.

Are there any tax benefits to using Toyota Finance for business vehicles?

If the vehicle is used for business purposes, the interest on a Toyota Finance loan may be tax-deductible. You will need to discuss this with a tax adviser - MoneyHub does not cover such matters.
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