Toyota Financial Services...

[Mister]

Originally Posted by strat61caster

Huh, I'll be damned, I went through my records and I think that once you go to make the last payment (ahead of schedule) your final payoff information will reflect the fact that you're ahead of schedule, you won't pay the full maturity value.

My bank values aren't adding up, I need to dig up statements to double check but I believe that at any point because I was paying more than the minimum if I added up all my payments plus the final payoff amount that TFS puts on their site I was paying less than if I made the minimum monthly payments all the way through.

Basically once they have enough in advance to payoff the principle they will, otherwise they hold the money like you described. At least that was my understanding.

I think you are correct that once you get there you do not have to pay the fully matured value. However up to that point, you are not getting any break on interest for paying down faster. My current balance on their site reads at ~15500, however I am a few thousand ahead on payments.

Since they hold over that amount, I am pretty sure I am getting charged the interest on the full balance, and not the balance less what I am ahead (more like 12500). I will have to double check my math on that when I get home from work tonight...

I saw someone else mention you can specify that a payment is to go only towards the principle, if you could kindly point me to where that is on the TFS website I'd love to see it.

[WilOTheWisp]

Sounds like the rant of someone who never received the loan terms wanted... I have had Toyota Financial on at least 7 Toyotas and Scions over the years and I have never had an issue. I find their online website easy to use. I have never had any issues once in 20 years...

Wil-O

[alderaan34]

Edit

[Full_Throttle_86]

I recently bought my FRS and I am using TFS making my second payment this week actually but I am curious now too. The first payment I made was more then the monthly and I planned on doing this the length of the loan until paid off, so I too am curious if there is an option to pay directly to the principal.

[FRStock]

No I understand the principal thing, In fact I'm 3.75 months ahead on my payments.

I had someone extremely rude on the phone, basically lie to me. I went in and spoke with my financial person and he gave me the right answer.

[Cliu91]

Originally Posted by FRStock

No I understand the principal thing, In fact I'm 3.75 months ahead on my payments.

I had someone extremely rude on the phone, basically lie to me. I went in and spoke with my financial person and he gave me the right answer.

Zero detail whatsoever regarding your situation.
This thread is useless and offers no value at all to any readers. You have a problem, but you just state a one liner not explaining what exactly happened.

What did they lie to you about?

[Panda Mao]

when I signed for the tfs loan terms they told me that the set amount monthly payments per agreement we fixed for 60 months for me at least but they also told me that I can pay extra past the agreed monthly amounts and it will all go towards the principal

[strat61caster]

Originally Posted by Panda Mao

when I signed for the tfs loan terms they told me that the set amount monthly payments per agreement we fixed for 60 months for me at least but they also told me that I can pay extra past the agreed monthly amounts and it will all go towards the principal

Check the second page of the statements, it explicitly states that extra payments go towards future payments and not the principle.

[Slartibartfast]

Originally Posted by Mister

My one issue with TFS is my own damn fault, I did not read the fine print.
I tend to make extra payments every month, separate from the normal monthly payment. They will not apply it towards the principle, only towards the next months payment. As a result I can never get ahead on interest, and I have the next 3 months of payments already paid.

I am refinancing through my own bank in the next couple of months and paying off about 30% of the balance at the same time to drop the monthly payment, and allow me to actually make principle payments. I want to pay my car off in 2 years, but signed up for the 6 year loan for some flexibility. I really do not want to pay 6 years of interest when paying it off in 2...

But like I said I cannot bitch about TFS here, I should have read the fine print and realized that this is what I was signing up for.

Hmmmm... It's not like that in Canada. Any over payment you make to TFS goes towards your remaining principle. Your regular payments are not effected, your loan is shortened, and interest is reduced.






Still waiting for more details on the OP's problem. One rude person is enough to condemn a company that employs thousands? Damn, how rude was he/she?

[Tuan]

Sounds like the OP is a little flustered from a single customer service flop

[terrypm]

Originally Posted by Slartibartfast

Hmmmm... It's not like that in Canada. Any over payment you make to TFS goes towards your remaining principle. Your regular payments are not effected, your loan is shortened, and interest is reduced.

I am in the US and this is similar to how my TFS loan was handled. My monthly statement did tell me that no payment was due until some way off date because I made some extra payments though. I just disregarded it and kept making my usual payment plus a little extra each month.


After reading some of the comments I called TFS and got a clearer understanding. TFS stated they use a average daily loan balance and your loan interest rate and update your financial information every month when they send out their monthly statements. I was told there is no need to request the extra payment be applied to the loan principle.
The TFS representative stated for example if you had a 60 month loan and paid it off in 30 months, the interest charges would be close to half what was spelled out in the original contract that was signed and agreed upon at the dealers finance office.