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Ultimate guide to financing a Toyota

Toyota-on-the-beach

Options for Toyota finance 

So you’ve decided to buy a Toyota. Oh what a feeling! 

For years after the first Land Cruiser arrived in Australia in 1958, Toyota has been a popular choice for many drivers. From a reliable Yaris, to a hybrid Prius, to a heavy duty Hilux, there are plenty of options out there. 

But what choice do you have when it comes to financing your new vehicle? Read on and find out…

options for Toyota finance graphic
  • Car loan: A type of secured loan that is used specifically for the purchase of a vehicle, where you pay back what you borrowed plus interest. There is the option to choose between a fixed or variable rate, plus rates are generally lower as the Toyota you buy is put up as collateral against the loan.  
  • Unsecured personal loan: This loan can be used to buy a vehicle without having to put it up as security. In fact, these loans don’t require you to give up any of your assets as security at all. Just keep in mind, you’ll often receive a higher interest rate than a secured loan.  
  • Dealer finance: A form of financing that is offered to you at the car dealership. It is the faster option as you can apply, be approved and drive away all on the same day. There are often low rates attached (1% or less) but be mindful, you might have to sign up for a lump sum balloon payment at the end of the loan. 
  • Chattel mortgage: This is essentially a car loan for businesses that need to purchase a vehicle. With a chattel mortgage a business can buy a car upfront, then from the income the car generates, the loan is paid down gradually (over 2 to 5 years). However, if a business cannot pay down the loan, the loan provider can repossess the vehicle. 
  • Novated lease: A way to lease a car by making a salary sacrifice arranged by your employer. It is where you make repayments on a vehicle with your pre-tax salary, meaning you actually reduce your taxable income. Plus, repayments don’t always only cover the cost of the car itself, they can also contribute to the running costs too like fuel, maintenance or insurance. 
  • Car lease: This is where you don’t own the car but instead make payments in order to use it. In some cases, monthly lease repayments tend to be cheaper than car loan repayments and come with maintenance packages to cover the upkeep of the car. However, the restriction is that because you don’t own the car, you may face restrictions (like a limited amount of kms over time) and it may end up being more costly over time. 

Want to start comparing car loans now? Take a look at these killer options below! 

Compare Car Loans - last updated 27 May 2024

Search promoted car loans below or do a full Mozo database search. Advertiser disclosure
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $75,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Car Loan

    Up to 7 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    6.84% p.a.based on $30,000
    over 5 years

    Purchase or refinance a new or used car, caravan or motorbike, up to 7 years old. Fixed rate with terms from 1 to 7 years. Make additional payments and free redraw. No early payout penalties. No monthly fees. Quick start application in less than 5 minutes online.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,460.64 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.

    Compare
    Details
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

    Compare
    Details
  • Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    8.99% p.a.
    9.68% p.a.based on $10,000
    over 3 years

    Repayment terms from 1 year to 6 years. Representative example: a 3 year $10,000 loan at 8.99% would cost $11,546.23 including fees.

    Compare
    Details

Toyota finance features to look for 

Whether you opt to borrow from a bank, credit union, online lender or from a Toyota dealership, there are a few products to choose from. And each of those products have a bunch of features you should familiarise yourself with. 

Here’s a breakdown of what’s on offer:

Interest rates This is the headline rate that is attached to the loan and what you pay your lender in return for borrowing the money from them.
Comparison rate Unlike the headline rate, this rate encompasses the fees as well to give customers a rounded view of how much the loan could cost. When weighing up different loan options it is important to refer to the comparison rate.
Fees Anywhere from annual fees and monthly service fees to exit, early repayment or late charges, you’re likely to face additional costs on your Toyota finance. Aim to secure a loan option that has as minimal fees as possible.
Loan term Ranging from 1 up to 7 or 10 years, it all depends on how much you want to borrow and how long you think you need to pay it back. Remember, the longer the loan term the more interest you pay.
Repayment schedule Generally the choice between weekly, fortnightly or monthly repayments, choose a repayment schedule that aligns with when your salary comes in.
Flexible repayments This includes features like free extra repayments and a redraw facility. These allow you to make additional contributions on top of your regular repayments plus access that money later if you need to. Just bear in mind, some loans charge an early repayment penalty if you pay off your loan in full ahead of time.

How much Toyota finance will cost 

With Toyota there are plenty of vehicle options. So, depending on whether you go top or bottom of the line, this will determine the overall cost of your Toyota finance (along with things like interest rates and fees).

how to calculate the cost of Toyota finance graphic

Figuring out how much your regular repayment can be tricky ahead of time, especially if you’re not a maths whiz. But we’ve got you covered, check out the Mozo Car Loan Repayment Calculator.

What you need to finance a Toyota 

Once you’ve found the right Toyota finance option for you, your job is almost done! There are just a few things you need to remember when applying. 

While each loan will have its own set of requirements, here are some things that you could come across. 

To qualify for Toyota finance: 

  • 18 years or older 
  • Good credit history 
  • Meet certain income requirements 
  • Australian permanent resident or citizen. 

To apply for Toyota finance: 

  • Personal Identification: driver’s licence, passport, medicare etc.  
  • Financial info: bank statement, credit history  
  • Vehicle info: make, model, year etc.  

Want to take a look at some car loan options to finance your new Toyota? Jump over to our low interest car loan comparison page.

Polly Fleeting
Polly Fleeting
Money writer

Polly Fleeting is a personal finance writer here at Mozo, specialising in loans and credit cards. Her work is aimed at helping people find ways to make smart product choices, reduce debt and get more for their hard-earned dollars. Polly has a degree in Journalism from the University of Technology, Sydney. She is also ASIC RG146 (Tier 2) certified for general advice.

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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