I was looking at a 4Runner and saw the monthly payment would be around $950. That’s way too high considering other options in the market. That also means Sequoia would be $1200 I guess. I could never justify Toyota with such high payments because, yes, they’re reliable but that’s about it. Extremely old tech and design. Am I missing something? I honestly would love a Land Cruiser but know it’ll be above $1k.
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Thinking about the cost of something in terms of monthly payments is not a very good way to think about it. Framing it in those terms is often used to take advantage of consumers. The monthly cost is a function of the three things, all of which are what you really need to understand to compare to other options and understand the true cost:
- The total cost
- The down payment
- The interest rate
Join us at /r/personalfinance
I mean, interest rates are 7%, and you’re talking about buying a new $50k vehicle. For a 60 month loan, that’s entirely accurate. The answer is, buy gently used.
Interest is 7%, but Toyota was advertising 5.49 and 5.99 during toyotathon. Tried charging me 9.48 with tier 1 credit. I got up and walked out. Dude nearly pissed himself when the salesman told him they had already detailed and gassed the car, and put temp plates on it.
I laughed, said I’ll go where they stand by what they advertise. Ended up getting a loaded se for 27k with a much lower rate they were so desperate to make the same.
The problem is that interest rates on used cars are typically even worse, resulting in higher payments. Typically used car rates at my credit union right now are 11%. A new car is around 6%. A $50,000 car at 6% for 60 months is going to be a lower payment than a $30,000 car at 11% for 36 months which is typically the longest that they will let a used car loan term be now. This is even worse if you’re even considering the current used car market prices. To get a gently used car, you are paying almost new prices on it.
Why are you comparing different loan terms? 60 month is standard. My rate for a used vehicle is 5.25%, I assume OP’s credit isn’t abominable so 11% isn’t real. Match the rates and terms, the payment is lower. Plus…. You can put the same money down on either purchase, lowering payments further. They are not the same monthly payments whatsoever.
Need a lot more info. What’s the price of the car? What’s the interest rate? How much are you putting down or on trade in?
Average interest rate for auto loans is like 7%. Toyota Financial gave me 5.49%. I’m not complaining
5.25% here from local credit union.
For the 2023? 2024 we’re at 9%
2023, but I bought it in August, so it’s really the tail end of the model year. Idk if that makes a difference
Yea I went with the 2023 too
For the 2023? 2024 we’re at 9%
Directly from Toyota Finacial, my wife was seeing 9.47% for “Excellent 720+” credit for 4 years for a 2024 Corolla in early November. She ended up going with our credit union (PenFed) for 6.39%.
Actually, https://www.toyota.com/payment-estimator/ is STILL showing 9.47% “Excellent 720+” credit for up to 5 years for both Corolla and 4Runner.
Sheesh!! Toyota after our wallets!
Am I missing something?
Yea, an adequate down payment and talking about a car’s price in monthly payments. It’s not isolated to Toyota or a 4Runner
A 4Runner that costs $50k is going to cost the same monthly as a $50k BMW X3 with the same loan terms.
I have a 2022 Toyota Highlander Platinum AWD, a $55k vehicle and my payment is only $278/month because debt is expensive to take on these days so I take on minimal
Simple math problem.
50k, 0 down, 0% interest, 60-month financing, before taxes and fees will cost you $833/month. With the rates at 7%, the payments become $990/month.
https://www.toyota.com/deals-incentives/apr/
Because you have to buy one of the vehicles that have a financing deal currently.
Am I missing something?
Yes, you’re missing that your monthly payment is based on your credit score, which determines your interest rate. Interest rates are also much higher now than they were even just a couple years ago, even for buyers with great credit.
This is useless without the actual rate and your credit score
Right but I’m just keeping it black and white and going based off the calculator on the Toyota dealer’s website. But regardless, I can get a bmw x3 for 750 fully loaded when a 4Runner would be 850-900
what is the duration of those loans? How many months? What is the amount financed?
Why are you focused on the monthly payment? Focus on the price out the door. Before you say “oh but…” the answer is you cant afford it and not thinking about the long term if you are focusing on the monthly payment.
Too many people just focus on the monthly payment
I feel you. The lending game sucks right now. I ended up adjusting my purchase date so I could save more and put 16k down with a 800+ credit score on a ‘24 woodland edition. My rate was 8%. Toyota finance was literally dollars difference from local lending institutions. It sucks, but it is what it is right now. Motivation to pay that off ASAP I guess. I took the 66 month payment with the intent of paying off early while being in a comfortable payment zone if I have to just ride it out. The money game sucks. My wife’s ‘21 Rav is 2% for reference. Done thru Toyota.
Toyota has no reason to discount the rate on cars that are selling like hot cakes.
Interest rates are up and that’s just something people need to deal with
This isn’t a Toyota question. You sound like you have no idea how car buying even works. Research way more.
OP doesn’t understand that interest rates have been rising for the past couple years. Must have been living under a rock