For financing on a Toyota, you can get a loan through a dealership with Toyota Financial Services, or opt for a traditional auto loan through a bank or credit union. Getting a car loan from the dealership is convenient, but you may get better terms or customer service from a bank or credit union.
From sturdy pickups and SUVs to sensible sedans, Toyota’s name is synonymous with reliability. When it comes to finding a car loan, you want the same trustworthy common sense in your loan terms.
Today, auto financing options are almost endless—but what’s the best car loan for a Toyota? Car insurance broker and loan expert Jerry is here to help you break down all your options.
How to get a Toyota car loan
Whether you’ve got your eye on a brand-new Tacoma or a used Camry, getting a car loan for a Toyota is relatively simple. Start by checking your credit, then compare rates and terms from at least three different lenders, and try to get preapproved for a loan if you can.
Check your credit
Check your credit score before you start looking for a loan, since it’s an important factor in determining your loan terms, including the interest rate. In general, anything over 660 is considered a good credit score for a car loan.
If your credit score is below 660, you may still qualify for a Toyota car loan if you’re buying your car at a dealership. Toyota Financial Services accepts applicants who can prove they’re able to make payments with personal reference, proof of income, or a co-applicant.
Take a look at the table below to see the average APR and monthly payment for different Toyota vehicles based on your credit score:
Now that you’ve got an idea of the kind of loan you might qualify for, it’s time to choose a lender. You can get a loan through your bank, through a credit union, or through the dealership, if you’re buying your car from a dealer that participates in Toyota Financial Services.
Compare offers from at least three lenders before you decide on a loan. Look for a:
Short loan term: 60 months or less
Low APR: 4.93 percent or lower
Manageable monthly payment: No more than 10 to 15% of your monthly income
But don’t just crunch numbers—customer service is also important! Even a lender with great approval odds and low payments may not be the best choice if they’re hard to get in contact with or if other customers report a bad experience working with the company.
Getting preapproved for your car loan allows you to negotiate a better loan when you actually sign the loan agreement. Toyota Financial Services allows buyers to apply online for preapproval.
To get preapproved, you’ll need to fill out a loan application and provide your lender with the following information:
Social Security number
Driver’s license or other photo ID
Income documents (paystubs, etc.)
Key Takeaway To get a Toyota car loan, start by checking your credit rating. Then compare lenders and try to get preapproved so that you can negotiate a better loan.
Average loan term for a Toyota car loan
Picking your loan term is an important step in auto financing. The most common car loan term in the United States is currently 72 months, or six years. However, that doesn’t mean that it’s the best loan term.
If you can, try to get a repayment term of 60 months or less. If you can find a lender who will give you a shorter loan term, you may be able to pay off your loan faster and pay less interest. Although your monthly payments will be higher, a short loan term makes your loan more affordable in the long run.
If you’re getting a loan through the dealership, Toyota Financial Services offers loan terms from 24 to 72 months. One major benefit of a Toyota car loan is that you won’t have a prepayment penalty, meaning that you can pay the loan off early without any extra fees.
For an idea of what your monthly payment and interest rate might look like depending on your loan term, see the table below.
Like most car-related expenses, auto loan payments and interest rates vary from state to state. Look for a lender that understands the financial situation in your area and can offer you the lowest possible APR based on your credit score.
To see what you could pay for a Toyota car loan in your state, check out the table below.
You can get a car loan for a new or used Toyota, but your offers will look different depending on the age of your car. For instance, Toyota Financial Services will only approve loans for new and certified pre-owned Toyota vehicles that are five model years old or newer.
If you’re looking for a car loan for an older Toyota, you’re better off going through your bank or a credit union. You’re still likely to see a higher APR for used cars, but the overall loan amount will probably be smaller, making a high interest rate more manageable.
Want to see how your car’s age will affect your loan? Here’s how your monthly payment and APR could break down based on your Toyota’s model year.
No matter what kind of Toyota you’re financing, your monthly payment and APR will depend on your credit rating, loan term, loan amount, and location. Use Jerry’s car loan calculator to see what you could pay with a Toyota car loan!
Average Annual Interest Rate
Average Monthly Payment
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