Toyota Financing: What To Know Before You Buy
On average, a Toyota can last between 200,000 and 250,000 miles — and a properly cared for Toyota might even make it to 500,000 miles. If you’re looking for a car with staying power, a Toyota could be your best bet.
But how will you pay for your new reliable ride? Before accepting the first loan that comes your way, review your Toyota finance options (you may have several). While you’re here, check if your quoted payments are higher or lower than the average, too.
How do your Toyota payments compare to the average?
Use our auto loan calculator to determine how much car you can afford.
Buying a car can be an all-day affair, but getting a preapproved car loan will likely streamline the process. Even so, it can be hard to know if your offer is competitive. We’ve compiled some data to help.
In the tables below, you’ll see average monthly payments for five of Toyota’s most popular models. First, check your credit score. Then, find the column that aligns with your credit band. From there, you can compare your quoted payment to the estimated average.
It’s important to know that these estimated payments are just that — estimates. Your monthly payment will differ based on annual percentage rate (APR), loan term length, loan amount and other factors. Additionally, these estimates only reflect manufacturer’s suggested retail prices (MSRPs) and not dealer fees or other additional costs.
Also, you might notice that some of our hypothetical high-credit borrowers have a higher monthly payment than lower-credit borrowers. This is because data shows that these borrowers typically choose shorter loan terms. Short loan terms lead to less interest over the life of the loan, but payments are higher since there are fewer months to spread the balance.
Learn more about how we calculated average monthly Toyota payments.
Estimated average monthly payments for new Toyotas
| Model | Starting MSRP | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2024 Toyota Tacoma | $31,500 | $470.12 | $437.82 | $427.52 | $457.84 |
| 2024 Toyota Corolla | $21,900 | $286.61 | $266.92 | $260.64 | $279.12 |
| 2024 Toyota Highlander | $39,120 | $615.78 | $573.48 | $559.99 | $599.70 |
| 2024 Toyota Camry | $26,420 | $373.01 | $347.39 | $339.21 | $363.27 |
| 2024 Toyota RAV4 | $28,475 | $412.29 | $383.97 | $374.94 | $401.53 |
Estimated average monthly payments for used Toyotas
| Model | Fair purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2018 Toyota Tacoma | $18,796 | $355.24 | $307.38 | $275.80 | $275.12 |
| 2018 Toyota Corolla | $12,432 | $201.29 | $174.17 | $156.28 | $155.89 |
| 2018 Toyota Highlander | $20,758 | $402.70 | $348.45 | $312.65 | $311.87 |
| 2018 Toyota Camry | $10,939 | $165.17 | $142.92 | $128.24 | $127.92 |
| 2018 Toyota RAV4 | $17,321 | $319.56 | $276.51 | $248.10 | $247.48 |
Toyota finance options
Getting an auto loan can be intimidating, but it doesn’t have to be. Reviewing several options may get you one step closer to the lowest Toyota finance rates.
Toyota Financial Services
Best if...
You qualify for a promotional APR or prioritize warranties and maintenance programs.
Captive or manufacturer financing is when you get a loan from your car’s manufacturer. By choosing this option, you’ll get a loan from Toyota Financial Services (TFS).
Captive Toyota financing might net you the most favorable loan thanks to promotional APRs and exclusive rebates. These special offers vary based on sales events, your credit score, how much you put down and the model you purchase.
Importantly, special offers also depend on your ZIP code. To find out what Toyota financing deals you might be eligible for, check Toyota’s deals page. You could also talk with a local Toyota dealer.
Toyota is straightforward about what credit score is needed to buy a car with their financing, and you won’t qualify if you have bad credit.
Toyota Financial Services requires you to have a score of at least 610 to qualify for an auto loan. And to nab Toyota’s 0.00% interest deal (if it’s available), you must have a credit score of at least 690.
Promotional APRs
Occasionally, Toyota offers promotional APRs for specific models, or model years. Think of this as an APR sale. These APRs typically apply to a certain period of time during your loan (36 months is common).
Lease cash
Some Toyota leases come with “cash.” Toyota lease cash isn’t a cash back offer that you can pocket. Instead, you must typically put it toward your lease payments.
Rebates
New or upcoming college graduates could earn a rebate on their finance or lease. The same goes for eligible military members and their household family members (as well as Gold Star families).
Encore program
Repeat customers can unlock special incentives through Toyota’s Encore program. These may be dealer specific, so you’ll have to ask your dealer for more details.
ToyotaCare
Brand-new Toyota vehicles come with a complimentary maintenance plan called ToyotaCare. For the first two years or 25,000 miles, oil changes, tire rotations and other regular maintenance services are free. You’ll also get roadside assistance for the first two years of ownership.
Certified pre-owned vehicles
Every certified pre-owned Toyota must pass a 160-point inspection. It must also be less than six model years old and have 85,000 miles or less on its odometer. Once certified, these vehicles come with new-car financing rates, a free Carfax report, warranties, roadside assistance and more.
Bank and credit union auto loans
Best if...
Your current financial institution offers a relationship discount or has a car-buying service.
If you can’t get a loan from Toyota Financial Services, check your bank or credit union. Many offer an APR discount if you both bank and borrow. For instance, you can get 0.25% off of your PNC Bank auto loan if you set up autopay through your PNC checking account.
And for those who are credit union members, see if your institution provides a car-buying service. If so, it may also provide discounted auto loans if you use the service to buy your new car. PenFed is an example here.
Banks and credit unions rarely disclose their minimum credit score requirements. You’ll probably need to apply for a preapproved loan or contact a representative to check your eligibility.
Online auto loans
Best for...
Comparing auto loans or if you have less-than-perfect credit.
One of the most effective ways to ensure you get the auto loan with the lowest rate is to compare multiple offers. Rather than applying for lenders one by one, you can compare up to five at once using LendingTree’s auto loan marketplace. It’s safe, easy and free.
Also, online auto lenders cater to borrowers at all ends of the credit spectrum. Carvana, for example, has no minimum credit score requirement. However, APRs for online auto loans are usually higher than those from banks or Toyota Financial Services.
In-house financing
Best if...
You don’t qualify for other types of financing and are buying an older Toyota.
You might know in-house financing as buy here, pay here. Both mean the same thing: The dealership funds your loan rather than a bank or lender. Although treating your dealer as a one-stop shop can be convenient, it can also be pricey. In-house financing has some of the highest APRs.
Also, vehicles at buy here, pay here lots tend to be much older than those at traditional dealerships. These two factors combined can be a recipe for an upside-down car loan.
However, in-house financing is more accessible to bad-credit buyers. If you have no choice, in-house might get you out of a bind. Just be sure to exhaust all avenues before taking this option.
How we calculated average monthly Toyota payments
To calculate average monthly Toyota payments, we found estimated starting MSRPs and fair market prices for some of Toyota’s most popular models.
Then, we subtracted an average down payment from each. According to Edmunds, the average down payment on a new vehicle was $6,907 in Q3 2023. For used vehicles, it was $4,111. The resulting figure represents the total amount our hypothetical borrowers financed.
From there, we used our auto loan calculator to figure out average monthly Toyota payments, using average APRs and loan terms as reported by Experian’s State of the Automotive Finance Market Q3 2023. You’ll find this data in the tables below. Please note that loan terms were rounded to the nearest whole number during our calculations.
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 11.86% | 9.29% | 6.88% | 5.61% |
| Average loan term | 73.87 months | 74.13 months | 70.26 months | 62.23 months |
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 18.39% | 13.53% | 9.33% | 7.43% |
| Average loan term | 66.28 months | 68.59 months | 68.56 months | 65 months |
Frequently asked questions
Sometimes. It depends on your credit, location and the dealership you buy through. Also, Toyota Financial Services might not offer 0% financing when inflation is high. If Toyota is promoting 0.00% financing, you’ll generally need a credit score of at least 690 to qualify.
Perhaps. Toyota may approve you if you have a credit score of at least 610. But that technically counts as fair credit, not poor. To improve your chances of getting a Toyota loan with bad credit, you could add a co-borrower to your application.
There are a few times a year you may want to keep your eye out for Toyota finance deals. The end of summer is a popular time for cars to go on sale to make way for next year’s models. December is also a good time to shop. The dealership may be trying to meet a year-end sales quota, motivating them to get their current inventory off the lot.