How to Finance a Toyota
After a house, a car is likely the largest financial commitment you will make. Since it is such a large purchase, you want to get it right. If you do not have the money needed to purchase the car outright, financing allows you to borrow money from a financial institution and to pay it back in monthly installments. Financial institutions charge interest for the use of their money, and the interest rate varies with the amount borrowed based upon your credit rating and whether you are financing a new or used car.
- Personal financial documents
Request and review copies of your credit reports from the three major credit bureaus. Correct any erroneous information and be prepared to explain negative information.
Select the Toyota you want to finance and determine how much you want to finance. A car payment, as a rule of thumb, should not exceed 20 percent of your net monthly income.
Gather personal financial documents -- bank statements, pay stubs, tax returns -- and use the information to complete an auto loan application with a bank, credit union or Toyota dealer's finance manager. Also apply online with Toyota Financial Services.
Wait for your loan to be approved. Take a check for the purchase amount to the seller if you financed with a bank or credit union. Sign any final documents and get your keys if you financed at the dealership.