The results are in, Aussies love Toyotas! What are your finance options when buying one?

It’s official, Aussie drivers are hitting the road Toyota style! 

Last week, market research company Roy Morgan announced that Toyota was Australia’s most popular car brand by volume of sales in 2020. 

“Australia’s largest car manufacturer Toyota has triumphed in the Major Car Manufacturer of the Year Award after winning 12 straight months during 2020,” Roy Morgan chief executive officer, Michele Levine said. 

“Toyota had an average customer satisfaction rating of 94% during 2020.” 

On top of that, car insurance provider Budget Direct painted a similar story for the beginning of this year. In fact, according to its latest Australian car sale statistics, Toyota maintained the lead in new car sales with 16,819 vehicles sold over January 2021. This is almost double the amount of the next most popular car brand Mazda, which recorded 8,508 new car sales for the month.  

Of the Toyota fleet, Budget Direct recorded that the Toyota Hilux was the most popular model with 45,176 new car sales over 2020. This is followed by the Toyota RAV4 (38,357), Toyota Corolla (25,882) and Toyota Prado (18,034). 

Plus, with the second hand car market currently booming, a bunch of second hand Toyotas have been sold around the country - which are not factored into the above statistics. 

So I want to buy a Toyota, what are my options? 

There are plenty of options when it comes to financing a Toyota. 

On the one hand, you may have built up a savings stash over time and can afford to pay for the car out of pocket. However, this isn’t the case for everyone - that’s why there are a bunch of ways to borrow money to cover the cost of your purchase. 

Here are a few options: 

• Car loan: This is a type of secured personal loan that is designed purely for the purchase of a car, such as a Toyota. In this instance, the car you are buying is used as collateral against the loan, often in return for a lower rate. These products come with either a fixed or variable rate, can be used for new or used vehicles and can be paid back for anywhere between 1 to 10 years. Car loans can be taken out from a more traditional bank or an online lender (who often offer competitive interest rates).
  

• Unsecured personal loan: Unlike a car loan, an unsecured option means you don’t have to put up your new Toyota as security (or any other asset for that matter). This can come at a cost though, as fixed and variable interest rates are often higher on unsecured loans. 
  

• Dealer finance: If you are purchasing a Toyota from a dealership, there is the option to apply for finance on the spot. This means you can be approved and buy your car on the same day. Just keep in mind, that while dealerships often offer low rates they may require you to pay a lump sum balloon payment at the end of the loan term. 
  

Some Toyota customers also opt for a chattel mortgage (for businesses), a novated lease (through salary sacrifice) or car lease instead. 

Looking to weigh up car loans to fund your Toyota? Take a look at these deals below!

Is it a good time to buy a Toyota? 

It all depends on you and your current financial situation. 

As mentioned above, there are a bunch of different options when it comes to financing a Toyota purchase. So to determine whether or not now is a good time, you need to consider whether you are willing to commit to a payment method and to paying it back. 

Time of year can also have an impact on the price you get on a vehicle such as a Toyota. Right now as we head towards the End of Financial Year (EOFY) a bunch of car dealerships have some red hot EOFY car deals up for grabs. This means if you are already in the market for a shiny new Toyota, you could end up shedding thousands of dollars off the sales price by opting to buy now. 

But also remember, if you aren’t sure you can afford a car at the moment, don’t stretch yourself just because you like the idea of a sale. It may end up leaving you with unmanageable debt. 

Alternatively, used car prices have skyrocketed over recent months, which includes used Toyotas. So if you are looking around for a pre-loved, ensure you don’t end up buying a lemon for a hefty price tag. If you don’t find yourself a good car for a good price, hold off on making a purchase if you can. Waiting it out could be financially savvier in the long run. 

Speaking of the long run, it’s also important to weigh up the additional costs that come with owning a car, as there are many ongoing expenses you will face for as long as you hold the keys. 

Here are some major costs to consider before buying a Toyota: 

• Weigh up your Toyota car insurance options: From Compulsory Third Party (CTP) to Comprehensive car insurance, this can come with a hefty price tag. Make sure to compare car insurance policies before signing the dotted line to find the best policy option for you. 
  

• Factor in regular costs like fuel, rego or getting a service: The minute you drive away in your Toyota, it will start costing you money. From more frequent expenses like filling up your petrol tank, to monthly, bi-annual or annual bills such as rego or getting a service. These costs can really add up but are essential to keeping a car on the road. 
  

• Take into consideration any other mechanic bills: There is no guarantee that your car will always remain in tip top shape, because the truth is accidents happen. So whether you have car insurance or not, these costs can leave your pocket feeling a lot emptier so it’s crucial to have the money ready in case you need to front up a mechanic bill. 
  

Want to find out more about car funding options? Head over to our car loan comparison hub for the info you need. Looking for a deal on your car loan? Compare the top low interest car loans.