Toyota 0% Finance and Aurion AT-X

tomsco on 06/12/2016 - 11:16

Hi all,

Wanting to ask the OzB collective their thoughts on buying a brand new Aurion.

I know most OzBaragainers would baulk at the thought of buying a new car due to the depreciation, but I'm nearly 30 and have always had 2nd hand, and with seeing the 0% finance deal, my interest has been piqued.

Basically, I'm not much of a car person, so not fussed about the Falcon v Commodore debates, and saw the 0% deal hence looking further into the Aurion. I like all the tech gadgets it has and would be a nice upgrade from my '04 Focus.

Does anyone have experience in negotiating with 0% finance deals. Looking on Car Sales, the price is set across all dealers, so can't use that as a tool. If I don't mention the 0% finance up front, would the dealer negotiate? Or would they expect me to to that? Would I have a better chance of just trying to negotiate extras into the price (would like tow ball and mats if possible).

I spoke to a Toyota Fiance person on the phone to enquire about balloon payments, but he didn't seem to want to give much away. Would something like a $12k balloon payment be reasonable - logic being I'd flip the car in 4 years and (looking at 2nd hand) the sale of the car would easily cover the balloon. Or am I stupid in considering this as it would possibly depreciate half it's value in 4 years?

I do have cash to purchase up front, but I would prefer to keep that on my mortgage.

Sorry for all the questions. I'd love to jump on this, but I guess my major concern is the depreciated value. So yes, I'm asking a bunch of strangers what I should do :p

Thanks in advance.

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Comments

  • Gronk on 06/12/2016 - 12:26
    +2

    While there are some exceptions, for the most part all cars will depreciate, the amount will vary depending on the brand and the reputation of the vehicle in the market. I wouldn't let depreciation alone hold me back from buying a new vehicle but we're all different.

    The 0% finance offer is just another approach in helping the dealer (and in turn manufacturer) retain gross profit in sales, they offer you a pretty decent finance arrangement but won't negotiate on the price of the vehicle itself, so they still come out in front in the long run.

    If this were me, I'd get a couple of quotes (from 2 different dealers) - one where I negotiated the price and finance components separately and another where you're quoted based on the advertised price at 0%.

    Coming up with a balloon figure you're happy with is always a bit like placing a bet on next year's Melbourne Cup, it might be a bit of a close shave on an AT-X but on one of the higher spec models I think you'd be fine.

    • tomsco on 06/12/2016 - 12:50

      Hey mate. Thanks for the feedback. Really appreciate it.

      I wouldn't let depreciation alone hold me back from buying a new vehicle but we're all different.

      Very true. I guess it is a premium I'm prepared to pay so I can be the owner from day dot.

      If this were me, I'd get a couple of quotes (from 2 different dealers) - one where I negotiated the price and finance components separately and another where you're quoted based on the advertised price at 0%.

      Good idea. This would be the best way to gauge the cost of the 0%. Will see how much I can get out without committing.

      Coming up with a balloon figure you're happy with is always a bit like placing a bet on next year's Melbourne Cup, it might be a bit of a close shave on an AT-X but on one of the higher spec models I think you'd be fine.

      All good. I do have the money to pay for it, but if I don't have to touch it, that would be preferable.

      Thanks again for the response.

  • chumlee on 06/12/2016 - 14:06
    +1

    The advertisement of 0% will have a disclaimer that will tell you the term and the residual amount.

    They should negotiate on price still as they get a payment from you when you are approved - application fee

    • tomsco on 06/12/2016 - 14:26

      I looked, but was unable to find anything in the terms listed online, so was just trying to get a feeler before diving in.

      Funnily enough, they provide a link to the fuel cards terms, but not for the finance terms.

  • Trying2SaveABuck on 06/12/2016 - 14:08

    Like the last guy said get the best price you can 1st

    0% finance is great especially if you got a home loan instead of dropping 30k on a car you leave that money in your offset account for you home loan and just pay what you need to periodically which can save for in the longer term.

    PS im looking at this deal too, VW has 1% finance which isnt too bad either

    • tomsco on 06/12/2016 - 14:24

      Haha, exactly what I want to do.

      I saw the VW, thought the Golf looked nice, but when I saw the cost to service it… phwoah.

    • goodcopbadcop on 07/12/2016 - 16:05
      +1

      You know that it's not really 0% that you are paying - don't you? Banks lend money to financiers and it comes at a cost. Just because this has 0% means that you will cover the cost of the finance in the price of the vehicle. Notice that you can not negotiate down the best price using this sort of deal. The calculations have been worked out so that Toyota do not lose financially. Your home loan is the cheapest money that you can get because the deal is between you and the bank. This has a middle man in there who makes their cut in selling goods - a car - to you. Be savvy about that. Ask questions - don't be blind sided. Why do you think that they won't let you negotiate a 'deal' on the price for 0% finance. They will be telling you the price and that is why you need to get other quotes so that you have something to compare it to. Do the number crunching. The balloon amount is what you could reasonably expect to sell the car after 4 years. Work out what you are paying all up for the vehicle including interest - and then work out if $12K is a reasonable % to have left after that time. Even without interest - 30 - 12 = $18K that you are losing after using it for 4 years which is quite a lot. Look on the car selling websites and see what 4 year old cars sell for now in comparison to what they cost 4 years ago. Still if you have to have a new car just once in your life - you might change your mind next time and try for buying a 4 year old car!

      • Trying2SaveABuck on 07/12/2016 - 20:36

        Yea VW is way to expensive to service.

        Goodcopbadcop i agree someone is making money and you always need to negotiate. Im not a fan of buying new but I pretty much always try to advocate for ex-demo you can generally save 3-6k on a car with less then 6000km which you know has been looked after and you still get the warranty and sometimes road side assistance for 3-7 years and caped servicing.

        It really depends on what you are after cars like VW, Toyota, kia etc dont get traded/privately sold unless there is either something wrong with them or ex government. If you are buying a highly expensive car like Mercs BMW etc i'd never buy that new but lets take a Camry they are going for 28k new (Bit pricey but if looked after will last you over 15 years) if you went to the auctions you might be able to pick one up for 18-22k probably 4 years old (50-75000km) but you get no warrenty and in a lot of cases no road worthy and if you have any problems in the longer run it eats up anything you have saved.

        Im no advocate for new cars but you can just right them off and 0% finance is one way to save via other means

    • tomsco on 06/12/2016 - 14:37

      Hmm… That's guy just seems so condescending and arrogant.

      • tomleonhart on 06/12/2016 - 14:41
        +1

        nvm the attitude. I do think what he said is true though.

        • tomsco on 06/12/2016 - 14:42

          Haha, yes. I do agree with what he says, but interested if there is normally much wiggle room for the Aurion without finance. JetLi seems to indicate not.

        • tomleonhart on 06/12/2016 - 14:44

          @tomsco: I'm no expert but when I read up on these offer. These seem to be the norm:

          • Price is never negotiable if you take up the car's company finance offer.
          • Price is negotiable if you pay cash or obtain finance from a lender says a bank.

          Certainly it was mine experience buying a 2nd hand Mazda from a dealer. No discount if we want to take up their finance. When we said we have cash saved up then they open to negotiate all of the sudden.

  • JetLi on 06/12/2016 - 14:37
    +1

    Usually Toyota don't like budging on prices, even more so with 0% finance.

    • tomsco on 06/12/2016 - 14:41

      Cheers. That makes me feel a bit better if the won't negotiate.

      Hypothetically, say I could get a $12k balloon payment, say I'm keeping that money on my home loan for 4 years at 3.8% (although I suspect they will rise) - that alone would be a saving of $1824 in interest across 4 years. Add to that the $1k fuel card, that seems like a pretty good price for the spec of the vehicle.

      Still, will try the suggestions as above, and see what I can get while indicating a non-finance payment, then go from there.

      Thanks everyone!

      • JetLi on 06/12/2016 - 14:45
        +1

        Just make sure there are no hidden fees and charges to be aware of.

        • PinzVidz on 06/12/2016 - 16:30
          +3

          Under NCCP law, Toyota Finance are not allowed to charge any "hidden" fees if they advertising a 0% Comparison Rate. No application rate, no monthly account keeping fees, zilch. This includes any termination fees. The one and only fee they are allowed to charge is for PPSR registration ($6.80 in Qld, by memory).

        • JetLi on 06/12/2016 - 16:37

          @PinzVidz: That's good to know, I remember when I was looking at the Nissan 1% finance previously, they charged a compulsory "facilitation fee" of around $600-$700 which ended up being close to the interest exp itself. It wasn't hidden, but it kind of defeated the purpose of the 1% finance deal.

        • tomsco on 06/12/2016 - 16:46

          @PinzVidz: Cheers. That's good to know.

  • RockyRaccoon on 06/12/2016 - 16:30

    buddy, check Toyota online for some prices, the basic Aurion is $29990 on road with a $1000 fuel card and 0% financing

    You probably wont do much better than that, but you might get some floor mats and other add ons included.

    KEY FEATURES
    3.5L V6 Petrol Engine
    16" Alloy Wheels
    Clearance sensors and rear parking sensors[B4]
    Smart Entry and Smart Start
    6.1" Touchscreen Audio with Bluetooth ® [B5] Phone and Music Connectivity
    Power Adjustable Driver's Seat
    Reversing Camera [B4]
    7 SRS Airbags

    http://www.toyota.com.au/special-offers-and-great-value/2016…

    Considering this is better equiped than a Camry, at $27990 on road with $1000 fuel card, its worth the extra

    • tomsco on 06/12/2016 - 16:49
      +1

      buddy, check Toyota online for some prices, the basic Aurion is $29990 on road with a $1000 fuel card and 0% financing

      Yeh, saw that. Was looking at the Camry RZ, but realised that deal didn't come with the fuel card. From what I've read it's much of a muchness between that and the Aurion.

      You probably wont do much better than that, but you might get some floor mats and other add ons include

      My thoughts too. Also another factor that made me more interested in the Toyota financing as opposed to the VW financing, in which I was easily able to find the cars cheaper elsewhere.

      I think I'm going to take the plunge :D

      • RockyRaccoon on 06/12/2016 - 17:11
        +2

        Look toyota's aren't always the most inspiring cars, and the operative word is most. They go well and they are incredibly reliable. My 2004 Corolla hasnt ever needed anything but a service which I now do myself.

        I wanted to get an Aurion at that price, but since my little baby goes so well my ozbargain brain wins out and it stays.

        BTW

        Toyota Service Advantage makes owning and looking after an Aurion that much easier. The already included plan offers up to five low cost, capped price, standard logbook services at $140 for the first 4 years or 75,000km, whichever occurs first.

        Another savings

  • boccos on 07/12/2016 - 07:31
    +1

    Just saying. The Aurion is just superb to drive. Heaps of power, and better economy than the Camry. My last V6 toyota was still going strong at 18 years of age and we only sold it when we received an inheritance. You won't be dissapointed. Just bargain on low fixed price services and try to get them for the longest possible period.

    • tomsco on 07/12/2016 - 08:53

      Good to hear from someone with some experience with it. Thanks.

    • Charity on 07/12/2016 - 16:04

      It will be nice when it is new, but even Toyota don't make 'em like they used to ☺

  • [Deactivated] on 07/12/2016 - 07:57

    Always compare the repayment numbers of your quotes as well as the overall package. It may be a lower interest rate but higher ongoing fees.

    I agree with your intent to leave cash on the mortgage

    Find a way to make a portion of your car work related and thus tax deductible if not already.

    Good luck!

    • tomsco on 07/12/2016 - 08:52

      Thanks for the response. Some one pointed out above, because it's a 0% comparison rate, they can't charge any finance related fees (only a PPSR registration). So say i get it for $29,990, would literally only be $29,990 I pay over the term.

      Find a way to make a portion of your car work related and thus tax deductible if not already.

      Yes, will look into that. We do have a few branches I drive around to across the state.

      Good luck!

      Thanks :)

  • Gershom on 07/12/2016 - 10:14
    +1

    I have an Aurion AT X. It's brilliant. Paid $28k drive away two years ago. I got them to include fixed price service ($130) for 5 years, floor mats and mud flaps. The car is SO good, uses the 3.5 litre V6 from the Lexus.

    • tomsco on 07/12/2016 - 10:36

      Thanks. That's great intel. Was that on a 0% finance deal? Or up front/normal finance?

      • Gershom on 08/12/2016 - 08:41

        I paid cash.

  • dimsum888 on 08/12/2016 - 11:09

    grab my aurion atx last year on the same 0% offer, could not bargain for discount or accessories as the $29990 is already discounted, aurion atx rrp is $34k+. literally it is the advertised $29990 divided over 4 years, plus a one time $5 (i think) finance application fee

  • singlemalt72 on 13/12/2016 - 13:36
    -1

    0% finance is bullshit - they are just selling the car at a higher price than could be negotiated with your own finance.

    I seriously recommend watching this https://www.youtube.com/watch?v=W5cukcs_4r8 (though Cadogan can be vexing, he does know his shit!)

    • tomsco on 13/12/2016 - 14:07

      When you calculate in keeping interest against your mortgage, their can be some serious savings.

      Based on my rough calcs, if I'm able to get a $12k balloon payment, I'd be saving about $5k in interest. Take into consideration rising interest rates, that could be even greater. Add the $1000 fuel card and that a nearly $6k saving off the set price vs buying up front.

      So yes, if you've got the cash just sitting there doing nothing for you, it would probably be better negotiating an up front saving, but with my current situation, the 0% finance is an absolute bargain.

  • tomsco on 13/12/2016 - 14:07

    I'm currently in negotiation to see what extras I can get thrown in. Floor mats are done and dusted. I've asked about the tow set, but I don't think I'll achieve this. If not, will try the weather shields.

    heading back in on Saturday to finalise negotiation, so will let everyone know how I go.

    • nafe on 13/12/2016 - 14:44
      +1

      Window tint, mats, number plate covers, bonnet protector, boot liner etc are cheap n easy dealer extras.

      • tomsco on 13/12/2016 - 15:34

        Cheers, good to know what is easy to negotiate.

        Might also try for the boot liner if the tow kit is a no go. Not to fussed about the other stuff.

  • JetLi on 15/12/2016 - 16:49

    I see there is also a $1,000 fuel as part of the 1% finance promo, sweetens the deal

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