Captive car financing programs are great options for when you want to save money on new car loan rates. 0% financing with Toyota, for example, provides 0% interest financing on new Toyota vehicles. There are stipulations, however, with services such as Toyota financing. Your credit score must fall at or above a certain score in order to qualify for a Toyota loan. With this being said, you may be wondering exactly what these scores are and how you can qualify for a Toyota loan. Thus, to help you understand eligibility for Toyota financing, we at Toyota Direct have compiled a useful list below.
- What Is Toyota 0 Financing
As you probably know, most new car loan rates can be astronomical. 0% financing with Toyota, however, looks to mitigate this by providing 0% APR financing for qualifying buyers. These low rates also set Toyota’s financial services apart from competitor financial services, saving you quite a bit of money.
- Application Requirements
All car financing, including financing with Toyota, has application requirements. Fortunately, the requirements for 0% financing with Toyota are relatively simple. After selecting a Toyota vehicle, all you will need to do is provide a down payment that is equal to 10% of that vehicle’s value. Your credit score will also be checked, and this will be the primary factor in determining your eligibility.
- Prime Credit Tier
As mentioned above, credit scores are the primary factor used to determine financing eligibility with Toyota. In order to qualify for Toyota 0% financing, you must be at or above the prime credit tier. The prime credit tier is a set range of credit scores, from 661 to 780. Hence, if you have a credit score within this range, you will qualify for 0% financing.
- Superprime Credit Tier
The best new car loan rates are provided to buyers in the superprime credit tier. The superprime tier consists of scores between 781 and 850. If your credit score falls within this tier, you will typically be approved for the best loan terms no matter what financial services you use. Additionally, 56% of people that get auto loans are in the prime or subprime credit tier. Therefore, you should always strive to maintain your score within these tiers.
- Improving Your Credit Score
Suppose you just fall short of the prime credit tier to qualify for the 0% APR Toyota finance deal. If this is the case, you probably want to improve your credit score. Luckily, there are a few simple steps you can take to improve your credit score to ensure that you qualify for great financing rates. The most common actions you can take to improve your credit can be seen listed below:
- Paying past-due or delinquent accounts
- Reducing revolving debt
- Timely payment of bills
- Ensure an accurate credit score by checking your credit report
- Keeping old accounts open
- Limit credit card and loan requests
- Toyota Financial Services Minimum Credit Score
Whether you are shopping at Toyota Direct’s Toyota dealership near Columbus, Ohio, or any other Toyota dealership, Toyota has a financing program besides the 0% financing that still provides incredible benefits. These benefits include a trade-in program, in which you can trade your Toyota vehicle in for a new one after a set amount of time. The minimum qualifying score needed for Toyota’s general financing is 610. However, you should note that your credit score will determine the terms and interest rates for a loan. The higher your score, the more benefits you will receive when financing a car. If you fall short of this minimum score, you can take a look above at the tips for increasing your score.
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