Toyota finance options in Australia

Toyota continues to dominate Australia's automotive market, with 20,541 vehicles sold in March 2025 alone, securing a 19.53% market share. Models like the RAV4, HiLux, and Prado remain top choices for Australian drivers, reflecting the brand's enduring popularity.

Toyota financing options

What types of Toyota finance options are there?

There are several finance options available to help you buy a Toyota:

• Secured loan. Commonly referred to as a car loan, a secured loan is where you borrow money from a lender to purchase a vehicle and then pay it back over a set period. Interest rates can be fixed or variable and the car acts as security for the loan.
• Unsecured loan. An unsecured loan is similar to a car loan but with the key difference that the vehicle is not used as security for the loan. As a result, the lender faces an increased level of risk and you can expect higher interest rates on an unsecured loan compared with a secured loan.
• Novated lease. A novated lease is a salary sacrifice arrangement between you and your employer whereby you lease a car and your employer deducts the lease repayments from your pre-tax income. Once the lease agreement ends, you have the option to purchase the vehicle at an agreed price. This can be a tax-effective way to purchase a Toyota and is also an innovative way for employers to reward their employees.
• Car lease. This commercial finance arrangement sees the financier purchase the vehicle on your behalf, and then lease the vehicle to you in return for monthly lease payments. You then have the option to purchase the vehicle when the term of the lease ends.
• Chattel mortgage. A chattel mortgage is where a financier loans money to you to purchase a car, and you make regular repayments towards the loan amount. While you take ownership of the vehicle straight away, the financier also takes out a mortgage over the vehicle. Once the loan term has been completed and the funds repaid, the mortgage is removed from the vehicle.
• Dealer finance. The final option is to obtain Toyota finance from the car dealer. This is often a convenient option because you can sort everything out at the same time you buy your car. Loan terms are generally three to four years, with a larger balloon payment required at the end of the term.

Features to consider when comparing your finance options

Make sure to keep the following features in mind when weighing up the pros and cons of different finance options:

• Loan term. How long will you have to repay the money you borrow? Terms usually range from one to five years for fixed-rate loans and up to seven years for variable-rate loans.
• Interest rate. The interest rate is a crucial factor that affects your regular repayment amounts and the total cost of financing. Rates can vary substantially depending on the financing option and the lender you select, so shop around for a competitive rate.
• Fees. Be aware of any fees that apply to your finance, including upfront application fees and any ongoing monthly fees. Also make sure you know whether you will be charged a penalty for missing a repayment or repaying your loan ahead of schedule.
• Comparison rate. Don’t just look at the interest rate when comparing car loans. You can get a much better idea of how a loan stacks up by looking at the comparison rate. This figure takes into account the interest rate and all fees that apply to determine the total cost of a loan.
• Loan amount. Check the minimum and maximum loan amounts that apply – do they suit your borrowing requirements?
• Repayment schedule. Make sure that any loan you choose has a repayment schedule that can be tailored to suit your budget. Check that you will comfortably be able to afford to repay the monthly amount and whether you are allowed to make additional repayments at any time.

How do you calculate your costs for Toyota finance?

Before taking out finance to purchase a Toyota it's important to understand how much it will cost and if it will be affordable on your budget. You also need to know which Toyota finance option will cost you more overall and which will be more affordable for you. To work this out, you can use a car loan comparison calculator. Using this calculator, you can work out how much two Toyota finance options will cost you in repayments and which one is the more affordable option for you to pick.

To use the calculator you will need the interest rate and fee information for the loans you want to compare. If you want to see if you can save, change the loan term or loan amount.

Factors to consider before you finance a Toyota

Before taking out a Toyota finance option, weigh up the pros and cons of each loan. Dealer finance, for example, can be convenient and offer low interest rates - but that rate might come with a higher vehicle price or a large balloon payment at the end.

Also check how flexible the loan is. Some loans let you make extra repayments without penalty, which can help you pay it off faster and save on interest. Others charge fees for paying ahead. Always read the terms carefully so you know what you're signing up for.

What you will need to apply for Toyota Finance or a loan

Once you’ve settled on the right finance option, it’s time to prepare an application. Before you apply, however, it’s important to check that you satisfy any loan eligibility criteria, such as:

• You must be at least 18 years of age
• You will need to have a good credit history to qualify for most finance options
• You may need to satisfy minimum income requirements
• You are eligible to live and work in Australia for the duration of the loan

To apply for car finance you will need to provide a range of information and supporting documents, including:

• Proof of ID. A current driver’s licence or passport will do the trick.
• Financial information. You’ll need to provide proof of income (such as pay slips and bank statements) and details of your credit history, including any outstanding debts or liabilities.
• Vehicle information. You’ll also need to provide some details about the car you plan on buying, including its make, model and purchase price.

If you’re planning to purchase a new Toyota, there are plenty of finance options available to help fund your purchase. Just make sure to compare your options and research any terms and conditions attached so that you end up with the right type of loan for your financial situation.

Frequently asked questions

• What factors affect my eligibility for Toyota finance?

  Eligibility factors include your credit score, income, employment status, and financial history. Toyota will assess these to determine your loan approval and terms.

• Can I make extra repayments on my Toyota finance plan?

  Yes, many Toyota finance plans allow for extra repayments without penalties. Check the specific terms of your agreement to understand any restrictions or conditions.

• What is the difference between Toyota's car loan and lease options?

  A car loan allows you to own the vehicle once the loan is paid off, while a lease typically means you return the vehicle at the end of the term without ownership.