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: Toyota Financial Services - Loan Underwriting Standards?

04-12-2012, 09:17 PM
Anyone know what it takes (besides a good credit score) to land one of those low interest rate, low down payment loans offered by Toyota Financial Services?
The TFS website provides zero information. Toyota dealers won't tell me specific information in advance of applying for a loan.*

Info I am talking about is debt to income ratios, length of employment, income documentation, length of credit history and so forth. Thanks.

04-12-2012, 09:25 PM
Maybe some finance guys will chime in, but I think they focus on your score....700 or better and you should be OK.

04-12-2012, 09:46 PM
Well, I traded in my van towards my '11 Tundra last year.
Owed $5k and they gave me $6700 for it.
So, that's basically a $1700 down payment. Relatively low.
My credit score was about a 624 at the time.
Had been at my job for about 6 yrs and I don't exactly make 6 figures. (not even close).
They gave me 1.9%.
Not like my stats were anything special.
Maybe it was my charm :noidea:

04-12-2012, 09:54 PM
Credit score mostly will determine eligibility which is based on how long you had credit history, making on-time payments and such. They will want to verify your current employment history and income so they'll be able to determine if you can afford the payments.

I always use it as one of my leverages when negotiating with the dealer. I do my research to know the MSRP and invoice price of the particular model I'm looking for then I shop around at least with 2-3 different Toyota dealers. Whoever can do the best deal with the lowest price (as closest to the invoice price and not MSRP), interest rate (zero interest) and no down payment makes the sale.

04-13-2012, 12:58 AM
I qualified for 2.9 percent last week, and I was grateful to qualify for anything after a short sale on my condo last year (under water, owed 150% of market value). I was rejected by two banks for auto loans. My credit score is solid though (over 700, after the short sale!), never missed a single payment, so Toyota approved me. Apparently it's 100% credit score for them. Never had to submit proof of employment either, would have been happy to if they'd asked.

Good choice on their part, the banks were stupid to reject me considering the housing market.

04-13-2012, 02:54 AM
I picked up my old keys & started to leave a deal one time & the rate came down.

04-13-2012, 07:29 AM
Go in with over 800 and they dont care what I do or what I want the deal is done. :)

04-13-2012, 08:19 AM
Your credit score matters the most because it already includes your debt ratios and other reporting items (good or bad). Normally banks will pull all three credit reports where as some only pull one of the main three. Keep in mind most lenders only report to one credit bureau and when you go apply for a loan, they may not know about any hiccups in your report because they only pulled one report.

If your loan is not through TFS and is through a bank or other third party there is always wiggle room. Some dealers hold onto .25% to 1.5%. If you get a quote for 6% loan on a new car and they say your credit is bad, they still have room to come down. Its money in their pocket to get you at the highest possible.

Just and FYI, if you have recently graduated (most companies it’s within 1-2 years of graduation) you can also get special financing without having a 700+ credit score.

Remember, everything can be haggled at a dealership.

No, I am not a finance guy (I'm an accountant) but all info is from personal experience when buying/shopping for a new car for myself/family/friends.

04-13-2012, 09:07 PM
Remember, everything can be haggled at a dealership.
But I thought TFS is independent of dealerships? In other words, if TFS rejects an applicant who is seeking to get a low APR loan that requires him/her to meet "top tier" credit standards, then the dealer can't do anything to help that buyer because the buyer did not meet the top tier credit standards of TFS.

What I am wanting to know is what are these specific credit standards (besides a very high credit score)? I havn't bought a new car in 17 years so the financing game has really changed and it's really hard nowadays to get loan institutions to disclose their underwriting standards in ADVANCE of applying for a loan.

04-14-2012, 10:55 AM

TFS is basically independent but is only available to the Toyota family of vehicles and they do not haggle. The haggling comes with the other bank lenders because they say they will offer 4%-4.5% for XXX Credit Score.

I hope this can clarify your questions/concerns:

In regards to the tier system, most lenders first look at credit score followed by Debt-to-income ratio and credit history. I spoke to a friend who works at a bank. He said normally to get the top tier you will need at a min. 720 credit score. The debt-to-income ratio his bank uses is 50%. Some lenders will go as high as 65%. When getting a car loan he said they will also take into consideration if you had a previous car loan and if payments were made timely. He also said that they normally do not require proof of income.

He said the best thing to do, is to go to a dealership, not call, and ask the finance manager what is the min credit score needed to get into the top tier. He said that this info is not a trade secret and they should be willing to give it to you. Tell them you are looking to buy a new car and want to know what the top tier credit score requirement is for TFS. If they are not willing to work with you, or tell you they have to run your credit first, I would find a new dealer. Just ask them, "Do they want your business or not?"

One suggestion is to contact the dealers who are supporting vendors on this site and ask them directly.

04-14-2012, 11:08 AM
i put down $1500, my credit was only 630 or so and i was able to get 2.9%. the bank wouldn't even approve me on a loan.

04-14-2012, 11:15 AM
My friend is a Honda car sales man and says there are 2 types of credit. Regular credit(credit cards,home loans,unsecured,etc.) He said if you have a good history of making car payments on time, they will approve usually approve you.

Sent from my Autoguide iPhone app

04-14-2012, 01:43 PM
I have excellent credit....that being said TFS wouldn't approve me for 0% because my wife had a huge ass Belk credit run up.

04-14-2012, 05:36 PM
I just bought my truck today $0 down and 0% 5 year financing. My sales guy said that a 680 (Beacon) is usually good enough (he didn't mention if it's required for both applicants or not). He claimed they pull Equifax first and if they don't get a high enough score they'll pull another bureau. I actually work for one of the big three bureau's and that wouldn't surprise me in the least (seen other business do it, after all they WANT to sell you something). With all that said I am not privy to TFS particular rules and underwriting standards.


04-18-2012, 12:09 PM
Regardless of credit score, they will always try to throw a higher rate at you. In my case, I had a settlement from previous car being totaled. I was planning to add some $ to that and pay basically 50% down on my new Tundra, and finance 50%. So it made sense to take the cash back rebate, and not the 0% financing. The official line is that if you take the rebate, you cannot get 0% financing, but I've been told by some friends that they were able to pull off getting both. I didn't push too hard for the 0%. The first rate they offered me was almost 4% (I have an 800 credit score and 0 other debt). I expected this beforehand and had gotten a prequal from a credit union for 1.99%. Told the dealer I'd go with theirs if they match the 1.99% and they did. I'm sure I could've got them to go even lower if I had tried but I plan to pay off the loan rather quick anyways so I wasn't too concerned about getting it much lower.

04-18-2012, 04:58 PM
When i goat my 0% financing, my credit score was such that the MGR asked me if i wanted to buy the dealership and he would work for me. Imagine that.

04-18-2012, 08:43 PM
When i goat my 0% financing, my credit score was such that the MGR asked me if i wanted to buy the dealership and he would work for me. Imagine that.

So, how did you actually GOAT the financing? :becky: j/k

04-19-2012, 07:57 AM
So, how did you actually GOAT the financing? :becky: j/k

My credit score is 786. My credit is such that i can buy just about anything i want. Toyota was giving 0% to qulified buyers. My point to the post was, i guess they don't see to many people with that high of score

04-19-2012, 09:28 AM

TFS is basically independent but is only available to the Toyota family of vehicles and they do not haggle.

Unless it recently changed, i financed a Chrysler vehicle through TFS about 4 years ago.

04-19-2012, 08:20 PM
Anything above 800 is rare. Mid to to high 700's is the bulk of people who remember to pay their bills every month.

The best solution is cash save up and you won't be a glorified car renter, pet peeve of mine are people who make payments on their car or home yet say they are owners. Unless the title has your name on it, you are just a glorified renter:eek:

04-20-2012, 06:54 AM
pet peeve of mine are people who make payments on their car or home yet say they are owners. Unless the title has your name on it, you are just a glorified renter

What about the perpetual smarta$$ (like me)?
When people ask, "how much did you pay for your truck?"......
I either say, I didn't pay for it yet, or, it's not "my" truck, it's the bank's.
I always get the sideways look, like, "no duh, capt obvious".
I think it's automatically assumed, when discussing a new vehicle, that it's financed.

04-20-2012, 07:36 AM
i have a score of about 750, but the finance rep when i got my 2011 tundra they told me they use a specifically weighted score. they told me the way it was weighted my score was a 667. my wife had a 720 on the regular score and when it was weighted for TFS it came out to a 730 or so. We got 2.25%, but also took the rebate and had a hell of a good deal on the truck so I was not unhappy.