Toyota Financing - Canada

Anyone have any insight into how Toyota Financial Services (Canada) determines their interest rates for financing?

Obviously they have been going up recently but they seem to offer different rates on different vehicles.

I can finance a corolla for almost 1% less than the Tundra I have ordered?

Maybe someone from a dealership can give me some insight?

 

It's really just profit, non Canadian made cars always carry higher interest rate to cover the exchange rates, and more in demand cars carry higher interest rate.

Scotia Bank offers way better rates.

 

Before I bought my truck, I called various banks and credit unions. Every single one of them said to finance through the dealership. They couldn't even touch the 5.89% I was quoted from Toyota. Average rate was 9% with Scotia coming in at 7.5%. I was told banks in Canada don't do auto specific loans like in the States. They set up an unsecured line of credit instead.

I have credit in the mid 800's and was putting over 50% down as well.

 

This was very similar to my experience as well. The only way I would get a rate close to what the dealer offered was on a home line of credit.

 

The more popular the vehicle the higher the rate is: in the fall of 2016 I got my tundra 1.49%, January 2020 we bought a new 2019 highlander for .9% because the 2020 highlander was out.

At that same time the 2020 highlander was 5.49%.