GR86 Is 4.9% actually a good deal?

Prestonese said:
The GRY deal with 0% was a strange one. Toyota probably didn't think they couldn't shift enough and needed to make sure. They probably played it too safe in hindsight.

4.9% is ok. German marques use much higher rates and higher GFVs as it means they earn more interest from you overall and they can also use this to support higher used prices. Some lucky people could get better rates elsewhere but it is not that simple and it's rare to find a PCP type product except with some specialists - ultimately it is much more difficult to underwrite GFV if you are not the manufacturer so it will be more expensive. You also need to remember that not everyone gets access to the best rates with the banks etc and getting an advance through your mortgage still costs you interest for the next 20 years!

You can find 0% deals from time to time but they are normally used to shift unpopular models or have inflated prices. Again, the GRY was an outlier. Both the car and finance rates should have been higher in my view. That said, it was also launched in a zero interest rate environment so it could be financed much cheaper in the back by Toyota than if it was launched now. The 4.9% for the GR86 also reflects that change.

Finally, you can still use the PCP product like a normal loan by overpaying instalments. That actually reduces the total interest you pay back. The trick is to reduce the GFV balance as early as possible. There's nothing to stop you doing that if you have the means.

We used to finance big pools of all sorts of vehicles and it's works quite differently for different cars, manufacturers and jurisdictions.
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A year ago Toyota had loads of 0% PCP across most of the range. The CEO got 0% on her C-HR , now I think there is only a couple of 0% deals , one being Supra.
 
gr-fun said:
Depending on your circumstances secured finance may be easier for some to obtain.

Most personal loans are rate for risk, so no guarantee you'll get the headline low rate.

If you want the best of both worlds do PCP with max deposit, 2 years and max mileage with the view you'll buy it. That'll give you the lowest total amount payable using Toyota's PCP.
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Well i learnt something new there, never tried increasing milage to lower the gmfv, Saves £500 over 42 months
 
GRMX said:
How about, say, if one didn't need to use someone else's money and just paid for it with a part X and cash? ;)
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I would say that using 30k of liquidity and putting it into a new car with potentially depreciating residuals instead of investing it is utterly bonkers - but each to their own.

Typed from a (cash bought) iPhone on a (cash bought) sofa ;)
 
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Let's face it. Everyone's circumstances and opinions are different. I was blown away that I could get the GRY on the 0% deal so I did! If it wasn't being offered at 0% I would have rethought what I was doing at the time. Did I really need an expensive toy? No but I'm very grateful I got to experience such a special car. I hope to keep it longer but who knows. I've saved the £18k payment so I either keep it and enjoy it or sell and make a slight profit/get back the money I put in but the whole time enjoyed the money instead of just staring at it on a screen! :unsure: 😅
 
the fear of rising interest rates and gmfv got to me, got the full amount I needed at 2.9%, just need to cancel the toyota finance now and hope they don't send me to the back of the queue :unsure:
 
Swizzle said:
the fear of rising interest rates and gmfv got to me, got the full amount I needed at 2.9%, just need to cancel the toyota finance now and hope they don't send me to the back of the queue :unsure:
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I think they might. Once the finance and order were locked I couldn't change anything on my GRY.
 
I'm planning it on it being a keeper and while the rate could be better it's affordable and with inflation it's a no brainer. Hopefully interest rates on loans won't be too bad by when it ends as the plan has always been to take out a bigger loan, pay car off and do some home improvements.
 
KobayashiMaru86 said:
I'm planning it on it being a keeper and while the rate could be better it's affordable and with inflation it's a no brainer. Hopefully interest rates on loans won't be too bad by when it ends as the plan has always been to take out a bigger loan, pay car off and do some home improvements.
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Thanks to the low apr and doubling the term its less than £30 a month more than the pcp
 
Swizzle said:
Well i learnt something new there, never tried increasing milage to lower the gmfv, Saves £500 over 42 months
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Try increasing your deposit, that will also blow your mind. Not complicated, borrow less for a shorter time,pay less interest,.
 
Bennno said:
Try increasing your deposit, that will also blow your mind. Not complicated, borrow less for a shorter time,pay less interest,.
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Exactly, that is what I did with my previous GT86 and my current GR Yaris.

To be fair, 1.9% over 3.5 years looks like an absolute bargain now. Car cost 33,495, 10K deposit, max mileage at 30K a year (I do less than half that), means 361 a month and at the end of term for the balloon payment (MGFV) I owe less than 10K, which I will pay off some of it and do the rest on a short term loan.

The madness is, compared to my GT86 where I put 7K down on a 30K car back in 2013, I was paying 450 a month! That was IIIRC 5.9%. Makes a huge difference as the Yaris in some ways works out cheaper!
 
Lauren said:
Exactly, that is what I did with my previous GT86 and my current GR Yaris.

To be fair, 1.9% over 3.5 years looks like an absolute bargain now. Car cost 33,495, 10K deposit, max mileage at 30K a year (I do less than half that), means 361 a month and at the end of term for the balloon payment (MGFV) I owe less than 10K, which I will pay off some of it and do the rest on a short term loan.

The madness is, compared to my GT86 where I put 7K down on a 30K car back in 2013, I was paying 450 a month! That was IIIRC 5.9%. Makes a huge difference as the Yaris in some ways works out cheaper!
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Similar to what I am doing on my incoming GRY.

Putting down a smaller deposit (about £3k), increasing the millage, 1.9% over 42 months and then, at the end, going to take some savings for the GMFV and settle it outright.
 
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