Final Payment Question

[PAISLEY1903]

My app tells me my next payment is due 25th May and I have 10 payments left which will take me me up to 25th Feb.

Anyone cleared it once pcp ends and know when lump sum is due after this... had a look in my terms paperwork but can't find concrete answer. 

Is the "final payment" which is outstanding due come on 25th Feb and this payment includes the monthly final payment or is it after it and if so how long after it.

I put a bonus from work away into a fixed bond and just checked its maturity which is start March and thought oh......  have another option but before I explore it I wondered if anyone knew. 

 

[AndrueC]

All the monthly payments must be made. Then the lump sum will be taken the same way a month later. They will write to you beforehand (think I got my letter two months before the end) offering you various options.

[PAISLEY1903]

13 minutes ago, AndrueC said:

All the monthly payments must be made. Then the lump sum will be taken the same way a month later. They will write to you beforehand (think I got my letter two months before the end) offering you various options.

Brilliant.  That's perfect for me that re timings. 

What options were you given out of interest... I'm guessing give it back, get a new car or pay us.

Sitting with an expected miles of 29000 and final payment of 14715 on my rav4 excel.  Will probably keep it as wifes car is going on 14 years old and might swap my monthly payment for one for her or just refinance it and use the lump sum towards something toyota approved used for her.

[Flatcoat]

Following a disastrous 2023 with redundancy, 4 months unemployment and double cancer diagnosis all at the same time, and now I am working again but with a third drop in income, my saving plan to do similar was totally kyboshed. Will have no choice but to refinance, just hope loan rates come down between now and next summer! 

[Nick72]

26 minutes ago, Flatcoat said:

Following a disastrous 2023 with redundancy, 4 months unemployment and double cancer diagnosis all at the same time, and now I am working again but with a third drop in income, my saving plan to do similar was totally kyboshed. Will have no choice but to refinance, just hope loan rates come down between now and next summer! 

Holy **** mate. Best of wishes to you. 🤞🙏

Going through serious health issues but not in the same league as your good self. Luckily still in the same job though but if that goes so does the car (company car).

 

[PAISLEY1903]

2 hours ago, Flatcoat said:

Following a disastrous 2023 with redundancy, 4 months unemployment and double cancer diagnosis all at the same time, and now I am working again but with a third drop in income, my saving plan to do similar was totally kyboshed. Will have no choice but to refinance, just hope loan rates come down between now and next summer! 

Rates will come down but not as fast as initially thought which forced some lenders to increase their rates last week as forecasted wrong.

Something I tracked as part of my job (secured borrowing swaps over base rate not unsecured but similar)

Down they will come but it wont be even remotely close to the rate my PCP rate is on at moment !!! 

 

 

[Mike2222]

4 hours ago, PAISLEY1903 said:

My app tells me my next payment is due 25th May and I have 10 payments left which will take me me up to 25th Feb.

Anyone cleared it once pcp ends and know when lump sum is due after this... had a look in my terms paperwork but can't find concrete answer. 

Is the "final payment" which is outstanding due come on 25th Feb and this payment includes the monthly final payment or is it after it and if so how long after it.

I put a bonus from work away into a fixed bond and just checked its maturity which is start March and thought oh......  have another option but before I explore it I wondered if anyone knew. 

 

Just to clarify, because the earlier response is a little bit open to interpretation/misinterpretation - we recently paid off our car to own at the end of a 2yr pcp deal, but in Toyota-speak, the "final payment" will be the balance of what is owed, if you're similarly planning to pay off the car. And it is simply taken via direct debit from the same account you have been paying the monthly installments with, so there isnt a subsequent invoice to pay after the "final payment", but rather you will need enough balance in that account to meet the final payment amount. 

 

So, in our example, was car was "purchased"(/"PCPed") in March 2022 with a deposit, there were 23x monthly payments, then in March 2024 it was purchased (outright to own) with the "final payment" being taken by direct debit. 

 

Make sense? 

[PAISLEY1903]

8 minutes ago, Mike2222 said:

Just to clarify, because the earlier response is a little bit open to interpretation/misinterpretation - we recently paid off our car to own at the end of a 2yr pcp deal, but in Toyota-speak, the "final payment" will be the balance of what is owed, if you're similarly planning to pay off the car. And it is simply taken via direct debit from the same account you have been paying the monthly installments with, so there isnt a subsequent invoice to pay after the "final payment", but rather you will need enough balance in that account to meet the final payment amount. 

 

So, in our example, was car was "purchased"(/"PCPed") in March 2022 with a deposit, there were 23x monthly payments, then in March 2024 it was purchased (outright to own) with the "final payment" being taken by direct debit. 

 

Make sense? 

Ah OK so that's completely different.

So based on mine how would this work.

My app says I have 10 payments to make with the next payment 25th May. My monthly payment is £337.

10 payments from there is 25th February.

My final payment is £14750.

does this mean

A on 25th February I will pay 337 then 14750 later.

B on 25th February I will pay 14750

C on 25th February I will pay 14750+337

[philip42h]

6 minutes ago, Mike2222 said:

Just to clarify, because the earlier response is a little bit open to interpretation ...

Make sense? 

Yes, and that's exactly what I did, but it's not the whole truth ... 😉

Towards the end of the agreement we get notified of options to:

• Upgrade
• Keep
• Refinance
• Return

If we wish to Keep the vehicle we simply need to make the final payment by the due date by any means that we choose. For many of us the simplest option is to ensure that there are adequate funds in the appropriate account and allow Toyota Finance to collect the payment via direct debit - but that is by no means the only option.

[PAISLEY1903]

3 minutes ago, PAISLEY1903 said:

Ah OK so that's completely different.

So based on mine how would this work.

My app says I have 10 payments to make with the next payment 25th May. My monthly payment is £337.

10 payments from there is 25th February.

My final payment is £14750.

does this mean

A on 25th February I will pay 337 then 14750 later.

B on 25th February I will pay 14750

C on 25th February I will pay 14750+337

I've worked it out !!!

It says 10 payments remaining.

If I take 9 payments and deduct this total from my current balance it comes to exactly my finance lump sum so the answer is 

Whatever your remaining term is. The final payment is that lump sum payment. So for me it will be 25th Feb.  6 days before my lumpsum comes from bond lol so I will need to make alternative arrangements (beg from a parent for a week) 🤣

[PAISLEY1903]

5 minutes ago, philip42h said:

Yes, and that's exactly what I did, but it's not the whole truth ... 😉

Towards the end of the agreement we get notified of options to:

• Upgrade
• Keep
• Refinance
• Return

If we wish to Keep the vehicle we simply need to make the final payment by the due date by any means that we choose. For many of us the simplest option is to ensure that there are adequate funds in the appropriate account and allow Toyota Finance to collect the payment via direct debit - but that is by no means the only option.

Good thanks you for this . Is there option to delay a week lol

[philip42h]

4 minutes ago, PAISLEY1903 said:

My app says I have 10 payments to make with the next payment 25th May. My monthly payment is £337.

10 payments from there is 25th February.

My final payment is £14750.

If I've understood you correctly, you have 10 remaining monthly payments to be collected on the 25th of the month - so that's on 25th May 2024 to 25th Feb 2024 inclusive.

Your final payment of £14,750 falls due on 25th March 2024, and it's entirely up to you to decide how you wish to deal with that ...

[PAISLEY1903]

11 minutes ago, philip42h said:

If I've understood you correctly, you have 10 remaining monthly payments to be collected on the 25th of the month - so that's on 25th May 2024 to 25th Feb 2024 inclusive.

Your final payment of £14,750 falls due on 25th March 2024, and it's entirely up to you to decide how you wish to deal with that ...

Strange though as it says 10 payments ... if I take my current balance and deduct 9 not 10 payments it leaves me with exactly the remaining balance owed. 

[philip42h]

7 minutes ago, PAISLEY1903 said:

Strange though as it says 10 payments ... if I take my current balance and deduct 9 not 10 payments it leaves me with exactly the remaining balance owed. 

Fair enough - you have access to your agreement details and bank account and, you'll be pleased to note, I don't! 🙂 

[PAISLEY1903]

9 minutes ago, philip42h said:

Fair enough - you have access to your agreement details and bank account and, you'll be pleased to note, I don't! 🙂 

Your welcome to pay it mate. 

Looks like the "payments remaining" includes the final payment based on that 

[Cyker]

Have any of you lot been able to contact Toyota Finance through the portal?
I've left a load of messages but had no replies!

My dealer recommended I call them but it's been tricky since I'm working during their working hours and they close before I get off work!

Also this is what I was warning people about Direct Debit - You only authorized them to take out the monthly sum, but they can unilaterally change it at the end to a figure 2-3 orders of magnitude more to take out the lump sum final payment without your explicit authorization!

 

[philip42h]

I'm pretty sure that I arranged to settle my agreement through the portal - and that all worked just fine.

I rather suspect that the 'secure message' system enables them to communicate with you rather than the other way around.

Correspondence I received from them includes an email address: customerexperience@uk.toyota-fs.com ...

[Cyker]

Thanks mate, I'll try that - My final is coming up soon and I want to just get some reassurance for what I consider a large sum of money!  

I think Toyota in general really need to work on their communication responsiveness in this country...!

[philip42h]

I found the process relatively reassuring ...

• My agreement started in Sep 2020 - over 24 months
• I received an annual statement in Sep 2021
• In Jun 2022 I received a "Time to make a decision" letter - I ignored it!
• In Jul 2022 I received a "Time to make a decision" letter - I acted on it!
• In Aug 2022 I received a "Thanks for making your decision" letter
• I received an annual statement in Sep 2022
• In October I received a "Your Agreement is complete" letter

All communication was via the portal as far as I recall.

And, as you say, they do complete the process by taking the final big balloon payment via direct debit unless you arrange something else. But surely, we all take great care to understand these sorts of agreement before we sign them, don't we? 😉

[Cyker]

Did you get those decision letters through the post or via the portal? I was starting to get a bit leery as I literally haven't had any communication from them, electronically or post...ally, since the agreement was set up and I posted a message asked them to change the monthly pay date to AFTER the day I got paid instead of just before!   

 

[philip42h]

26 minutes ago, Cyker said:

Did you get those decision letters through the post or via the portal?

That correspondence I got through the portal. I downloaded and saved the pdfs so that's how I can look-up the dates - I may be a sad old ***, but I'm a paperless sad old ***! 🙂

So, you do have to go to the portal and look (probably). I can't say that I didn't also get copies through the post (but I'm a paperless sad old ***)

[AndrueC]

I forget the options I was offered. Refinancing or getting a new vehicle were probably two of them. But basically if you just want to settle and you've agreed x monthly payments then it will be x+1 with the final payment being whatever the settlement is. All you have to do is ensure that there's enough money in your current account to cover the final (rather large!) DD.

[AndrueC]

1 hour ago, Cyker said:

Also this is what I was warning people about Direct Debit - You only authorized them to take out the monthly sum, but they can unilaterally change it at the end to a figure 2-3 orders of magnitude more to take out the lump sum final payment without your explicit authorization!

There's nothing to warn anyone about. The law requires that the other party give you adequate notice before changing the agreed amount. This is what Toyota do. From what I remember they sent me a letter before the final agreed payment pointing out that settlement was now due and offering me various options.

That gave me at least two months to decide how to arrange settlement and to get my finances ready for the final DD. All perfectly acceptable and nothing to get worked up about.

I'm pretty sure I got a letter through the post. I know I got a copy of the final settlement through the post because I've filed it.

[PAISLEY1903]

I have sent them a message (response in 2 working days)

"It states I have 10 payments to go. Taking 9 x monthly payment total from current balance leaves me exactly the amount for final payment. Based on this I assume the term remaining is simply 9 months of normal payments and 1 month of the final lump sum. Please confirm" 

Already know it will be a yes but I just want it confirmed haha! 

EDIT

I spent hours looking for my agreement today and it was where I looked first and the little people must have hid it from me 🤣. My 42 payments consist of 41 at 337 and 1 at 14715! 

Which means it ends on payment 10 as lump sum. 

 

[ColinB]

Do take time to read whatever they send you, my daughter had a secondhand Yaris on a PCP deal and, although she knew the final payment was coming up, didn't realise exactly when. This resulted in a "Dad, would you please transfer me some money quickly before my bank account goes massively overdrawn." (it had the be by 2ish the same day). They had told her, but she missed it with other things going on in her life at the time, and I'd already agreed to lend her the money on an interest free loan. That was for several thousands, mid teens might have bounced, which would have resulted in who knows what troubles.