Extra Payment to Toyota Financial

[fishbag]

I recently made my first payment on my Yaris and added $100 to be applied directly to principal. I wrote on the payment stub to apply to principal, but when I checked my account, they had applied the extra to next months payment.

Turns out you have to send principal only payments to a completely different address. Ridiculous!!

Nevertheless, I am 95% happy with my new Yaris. 09 hb carmine red metallic. I would be 100% if it had a rear window wiper...

[thebarber]

ya, i thought about doing the same thing to pay it off quicker, but ya, you cant just increase your payments

they basically rely on people being lazy (like me) and not sending in cheques to pay off the loan quicker

welcome to yarisworld

[otterhere]

I recently made my first payment on my Yaris and added $100 to be applied directly to principal. I wrote on the payment stub to apply to principal, but when I checked my account, they had applied the extra to next months payment.

Turns out you have to send principal only payments to a completely different address. Ridiculous!!

Nevertheless, I am 95% happy with my new Yaris. 09 hb carmine red metallic. I would be 100% if it had a rear window wiper...

Now, that's kind of weird... Of course I guess you should've checked first, but I paid my house off early this way (adding extra to the monthly payment to apply toward the principal to reduce interest charges over the life of the loan) and would be really ticked if I couldn't do likewise with a car; what if you get some kind of financial windfall and can pay it all off in cash? Would you still be charged all the interest you otherwise would've had to pay???

Ugh, Toyota; you've been corrupted by the USA!!!

As for the rear wiper, that's one of the many 'extras' I hate about this car; you can have mine... Just one more thing to go wrong/part to buy (blade).

[33OH]

Welcome to YarisWorld!

And I love my rear wiper, especially with all of this salt/snow going all over the back window.

And I refinanced mine through the local bank because I didn't like how Toyota Financial handled the extra money as well. (and for a lower interest rate of course.) They have even sent me a check back saying 'Overpayment'. Well no duh, I was trying to pay more than the minimum, as any smart person does.

Oh well. Again, welcome to the forums!

[TinyGiant]

i just recieved a refund on my extended warranty of 1690 and they applied that to the loan in payments too.. i dont need to make a payment until 06/09 now.. but i will.. i guess i'll have to call them about making my next 6months of payments apply to the principal

[1NZYaris1]

I am not quite sure how things work in the US,
But here in New Zealand we do the same , if someone puts extra money on a months repayment it is carrried forward to the next month.
Once your payments have finished , and it turns out you payed it off early
by say 4 months then a refund is sent to you on the interest paid.
But most people ring up before the final payment and ask for a settlement figure.
They do it this way , because if they took the extra of the princable each month means
the would have too rewrite your finance contract every month.
Just an insight for you.

[FunctionSpec]

You guys are in the dinosaur age. Still writing checks? lol. Be Green, save paper and sign up with Toyota Financial Services online and make payments by electronic transfer.

Toyota loans are simple interest loans so that extra payment that you make goes toward reducing the principle. I've done it online and have not had any problems. Only thing is that the due date keeps changing to a future date and it makes it look like you are making payments for future months. The due date will be all off but if you remember what day of the month your payment is due it should be okay. Also keeps track of all the other past payments you made to keep you organized.