Rav4 Xt-r 0% Finance Option

[Winstanley]

Hi,

This is my first post so hope this is relevant to this board.

Today I went to see my local Toyota dealership about buying a new RAV4 XT-R 2 litre petrol.

I mentioned that I had seen that they were doing an offer of 0% finance over 3 years.

I asked quite a lot of questions about it and it seems ok. I could effectively borrow £10k from Toyota at 0% finance and pay back over 3 years.

My question is, has anyone else done this and are there any catches to it?

For example are you only allowed to go to an insurer they nominate.

Many Thanks

Dave

[allycomet]

Hi Dave,

Just picked my new XTR today :D . Although i was in position to purchase the car outright I decided to use the 0% option.

The dealer did admit that using the option meant that I would get slightly less for my trade in however the interest I will gain on my cash will more than offset the difference. No restriction on what insurer you use.

Hope this helps.

PS car is fab....................fingers crossed!!

[Winstanley]

Thanks allycomet. Just the answer I was hoping for.

Looks like I might be putting in an order for one soon.

Just out of interest it seems depending on what colour one chooses determines the time to delivery.

The new dark blue is 8-9 weeks, carbon quartz 3-4 weeks (the one I will probably go for).

Black 2-3 weeks and Tirol Silver 1-2 weeks (or maybe the other way round, didn't take too much notice of those because I won't be going for either of those colours).

[bjw]

Hi Dave,

Just picked my new XTR today :D . Although i was in position to purchase the car outright I decided to use the 0% option.

The dealer did admit that using the option meant that I would get slightly less for my trade in however the interest I will gain on my cash will more than offset the difference. No restriction on what insurer you use.

Hope this helps.

PS car is fab....................fingers crossed!!

What is to stop you saying you will be paying cash and when everything has been agreed (part exchange any discount etc) and then say you have changed your mind and will use the 0% finance I am sure the dealer will not try to negotiate a new deal with you !!!.

To me it looks like the dealer is trying to squeeze a bit more profit out of the deal.

In fact I may be wrong but I think it is illegal to state that there is an offer 0% finance but if you take it up they will give you less on your part exchange just as if you do not take the 0% finance offer up they will give you more part exchange

This is no criticism of the deal you got !! the main thing you are happy :D

[allycomet]

Yeh you're right bjw,

However i know the dealer quite well and he really didn't have to tell me.

At the end of the day its all about bottom line figures I suppose.

Cheers

[bjw]

Yeh you're right bjw,

However i know the dealer quite well and he really didn't have to tell me.

At the end of the day its all about bottom line figures I suppose.

Cheers

Yes its always the cost to change and I sure the dealer looked after you

[Pretani]

Hi Winstanley,

I have just done the same and take delivery of my new black beauty in 2 weeks.

There is no such thing as interest free credit as such - someone pays and in this case it will be the dealer I guess. The finance is through Toyota and I expect they will charge the dealer a handling fee, probably why it is only participating dealers who offer it. I think there are one or two members here who work for dealerships and they could clarify.

I didn't haggle for a discount. Instead, I haggled over what the dealer gave me for my Volvo. I think psychologically a salesman (and I am one) finds it easier to give you more for a trade-in than to reduce his/her price. Also the interest free saved me about £1,500.00 and the XT-R version gives a great spec for the money. So as long as the car works okay I'm happy.

Finally, I set up an insurance with Volvo a couple of years ago for the S40 (it's actually with RBS), they are keeping the annual insurance cost the same and are happy to insure the Rav.

Go for it buddy, if you get second thoughts about the finance deal you can pay it off early without any settlement fee.

P

[Mc Tavish]

Thanks allycomet. Just the answer I was hoping for.

Looks like I might be putting in an order for one soon.

Just out of interest it seems depending on what colour one chooses determines the time to delivery.

The new dark blue is 8-9 weeks, carbon quartz 3-4 weeks (the one I will probably go for).

Black 2-3 weeks and Tirol Silver 1-2 weeks (or maybe the other way round, didn't take too much notice of those because I won't be going for either of those colours).

Hi Winstanley seems the blue xtr has a long waiting time however im picking mine up next Saturday (just because i cant get time off cause cars waiting for me now!!!!) so it would seem the blue ones are out there just get ur dealer to look realy hard and every chance he'll find one for you but black nice colour too anyways enjoy it if and when you decide to go for it but don't let the waiting time put you off colour :D

McTavish

[Winstanley]

Regarding participating dealerships, I rang toyota on Friday and they said that that comment in their brochure was misleading because all dealerships offer the deal.

When I went to see my local dealership on Saturday the way it was explained to me was (and I was shown the document from toyota UK) that Toyota UK loan the £10k (through a finance company).

So if you want to borrow more than £10k as part of the interest free credit then the local dealer has to fund that extra from their own budget.

This means the local dealer will expect to recoup that money some other way for example by giving you a lower trade in price for your old car, or less extras thrown in etc. So effectively it is not interest free.

So my local dealership was saying if I take just the £10k loan that comes from Toyota and nothing extra from the local dealership then yes it is interest free.

So I aim to pay the £9,995 (the trade in price for my old car + the extra to make up the £9,995) and just borrow the £10k from Toyota and pay it back over the 3 years.

Cheers

Dave

[Yossarian]

Hi,

This is my first post so hope this is relevant to this board.

Today I went to see my local Toyota dealership about buying a new RAV4 XT-R 2 litre petrol.

I mentioned that I had seen that they were doing an offer of 0% finance over 3 years.

I asked quite a lot of questions about it and it seems ok. I could effectively borrow £10k from Toyota at 0% finance and pay back over 3 years.

My question is, has anyone else done this and are there any catches to it?

For example are you only allowed to go to an insurer they nominate.

Many Thanks

Dave

Collected my new XTR yesterday and very impressed with the first 100 miles!

I shopped around and was offered different amounts of 0% finance. It seems that the finance is only partially underwritten by Toyota so the dealers have to use some of their margin if you want a decent discount as well.

One dealer would give me the full 'cost to change' over 36 months, even to the extent of giving me cash back because my part exchange was worth more than the 30% deposit. But in the end I opted for part cash and part 0% finance over 24 months with another dealer who would not only match a broker's price but give me a better part exchange deal. After much head scratching I decided this was a significantly better deal overall.

The 0% offer is genuine, however, and there are no additional charges. So go for it (and remember it's still worth haggling)!

Yossarian

[Winstanley]

Well, I've only gone and done it.

Ordered my RAV4 XT-R 2.0 Petrol today.

Took the 0% finance and also managed to push them up another £500 above what they offered me for my part-ex, which was about £250 above what I was prepared to accept.

Only downside is that the 3-4 week delivery quoted on Saturday has now changed to 4-5 week delvery and we're off on holiday in 4 weeks so that's cutting it mighty fine.

Thanks all for your responses.

Dave