Toyota Financial Services: Guidelines for Getting Approved

Toyota Financial Services (TFS) is a solid option for financing a new or pre-owned Toyota. TFS provides Toyota customers with financing options at reasonable rates and convenient payment schedules. However, how does one go about being accepted for a TFS lease or loan? 

Here are some tips to improve your chances of securing the best offer:

1. Check your credit score and report. 

TFS will look at your credit report as one of the main criteria in making their decision. A lower interest rate and a greater likelihood of acceptance result from a higher credit score.

Each of the three major credit agencies (Equifax, Experian, and TransUnion) will provide you with a free copy of your credit report upon request. Before disputing anything, make sure you check your report for any mistakes or negative items that could affect your score.

2. Save up for a down payment.

When purchasing a vehicle, the initial payment is known as the down payment. Your monthly payments and total loan amount will be reduced in proportion to the amount you put down.

A greater down payment also demonstrates to TFS that you are financially responsible and dedicated to purchasing a car. Depending on your credit history, TFS may require a minimum down payment, but you can always pay more of a down payment to lower your loan amount and interest rates.

3. Choose a car that fits your budget and needs.

When calculating how much you can afford to spend on a car, it’s important to factor in not just the purchase price, but also ongoing expenses like repairs, insurance, gas, and taxes.

New and pre-owned Toyota car models are both eligible for financing through TFS, as are Toyota-certified pre-owned vehicles. Your neighbourhood Toyota dealer has a wide selection of vehicles, so you can shop online or stop by to test drive a few and see which one best matches your needs.

5. Negotiate the terms and finalize the deal.

You should expect an offer from TFS detailing the loan or lease amount, interest rate, term, monthly payment, and any fees or charges associated with the loan or lease if your application is approved for financing. 

You can either take the offer as-is or make an effort to haggle for more favourable terms. A good credit history and a sizable down payment might help you negotiate favourable loan terms, such as a lower interest rate, a shorter repayment period, and a lower monthly payment. You can sign the contract and take your new automobile home as soon as you’re happy with the terms.

credit: T&I Credit Union

What do you need to get approved?

In most cases, you’ll need to provide documentation of your identity and residency, as well as your income, before a lender will consider giving you a loan. In addition to your credit history and score, TFS may also look at things like how long you’ve been at your current job and how much of your salary goes toward paying off debt. To move the approval process forward quickly, you should be prepared with the following paperwork:

Proofable Canadian income
You must meet some general requirements to qualify for financing, such as being employed at your present job for at least three months. Although having a monthly salary of $1,800 or more is preferable, everyone’s life is different, and you may still be able to get a loan if you don’t exactly match these requirements.

Down payment
It’s not always necessary to put money down, but it certainly helps. Making a down payment reduces the total amount that must be financed. This can make you a more appealing borrower to financial institutions, increasing the likelihood that you will be granted a car loan.

Driver’s license
A current and valid driver’s license is required. A learner’s permit may suffice in some cases.

Current address
Your monthly rent or mortgage payment, together with your current address, is required to finalize your loan documentation.

Bank account
Your loan repayment must be automated each month so that the TFS can deduct the necessary funds immediately from your checking account. Bring a pre-authorized payment form or a void check.

credit: CNBC

How to get Toyota Canada to lower your interest rate?

With higher interest rates being offered when buying a vehicle, it would certainly be nice to get the lowest rate possible to help you save some money. The dealership may not necessarily promote these options to you, so it’s good to know your options in advance.  Unfortunately, there isn’t very many options available; here are a few that you can look into:

Offer to include a Multiple Security Deposit

Multiple security deposits are a viable option for reducing the interest rate when leasing a Toyota vehicle. If you pay the full amount permitted, the interest rate will decrease by 1.5%. For example, if the term you select requires a 5.99% interest rate, supplying the maximum amount of Multiple Security Deposit reduces the rate to 4.49%. 

The good news is that this is just a deposit, and you’ll get it all back at the end of your lease, plus you’ll save a ton of money thanks to the reduced interest rate. Smaller cars like the Corolla and the RAV4 typically fall inside the $3,000–$5,500 range. Vehicles like the Tundra and Highlander Hybrid can cost upwards of $10,000. 

Qualify for Toyota Loyalty Rate

You may get a slightly better interest rate on nearly every new Toyota if you qualify for their loyalty program. You should check with the dealer to see if any discounts are currently being offered, but in general, most cars will give you 5% off.  Be aware, though, that you can only get the loyalty rate if you’re currently leasing or financing a Toyota.

Get Certified rates by buying a Certified Used Toyota

Few people are aware that if they buy a certified pre-owned Toyota from a Toyota dealership, they may be qualified for Toyota’s special financing rate. Because the dealership might not tell you about it, this is an area where knowing more about the vehicle beforehand is helpful. 

Buying a pre-owned vehicle with a certification stamp of approval comes with a variety of additional advantages. Your credit application will determine whether or not you meet the requirements to qualify.

Does Toyota Finance People With Bad Credit?

If your credit is less than perfect, you should still be able to secure a car loan via Toyota because their lowest credit category starts at 520. Providing a significant down payment along with your application increases your chances of being approved. Note, however, that interest rates and other terms may be more stringent if your credit is less than stellar.

So, while you can get a car loan through Toyota’s captive lender, you won’t be able to take advantage of their lowest interest rates. A rate in the teens is typical for those with poor credit.

Can I lease a Toyota if I have poor credit?


Toyota Financial Services also serves as a lessor for people with weak credit who want to lease a car. Rates here are likewise likely to be steep, though. Leasing a car has historically been tough for borrowers with poor credit.

Leasing may be an option for people with low credit scores and high money-factor rates because the monthly payments are lower than buying. This is because you only pay the car’s value for the first two or three years, not its full price. Poor credit means you won’t get the best lease deals. Most interest rate incentives are for well-qualified lessees with top-tier credit.

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