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Toyota Financial services will not allow you to save interest on your loan by paying extra online.You have to snail mail a check to them if you want money applied to just the principle.

Paying extra online only allows you to delay future payments but doesn't help me with paying less interest over the life of the loan. The online services of Honda allowed me to pay down my principle instead of just paying ahead.

Next time I'll know to finance with Honda.pppp pppppppppppp pppppppppppppppppp ppppppppppp pppppp pppppp pppp pppppp ppppp ppp pp pp pp p ppp pppp ppp p p p p p p p p p

Review about: Toyota Financial Loan.


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i just realized this myself after making ten payments.they leesen the amount of next payment due, but the extra I sent on other payments is not applied to principal.

I am at the point where I can skip a payment. I would have to send a separate check every time I want to send extra to pay it off early. I have had several other loans and could always send extra to pay off principal early. I don't know why Toyota doesn't automatically do this.

I wish I had known this at beginning of the loan.

it's a low interest rate so it's not a huge deal, but for some every dollar counts.from now on I will ask and not assume all loans work the same

San Francisco, California, United States #690859

I just called TFS. Overpayment made online does not go to principal. A check needs to be snail mailed to:

po box 9490

cedar rapids,

iowa 52409-9490

Indicate on check:

"acct# principal only"


Just save up and pay cash next time


Thats true. I paid my Camry off early by making payments more than my car note. It also advanced my payments so I had some cushion


There's no limit to the amount you can pay online. And I'm sure if you asked, as I have, the representative will let you know anything over your schedule payment amount is automatically posted to your principal. The mailing address is given to customers who plan on making a LARGE principal payment, not a few dollars over your payment amount.


Another person who complains but dosent understand how it works.When a Finance company receives your payment they first apply it towards your accured intrest since last pmt and the rest go towards principal balance.

For exaple if you have accured $100 in intrest and pay $400, 300 will go twards your principal balance.

If you pay $500 the 400 goes towards your principal and the extra is alo credied toward your next payment.Dont complain when you are ignorant

to Credit Guru Los Angeles, California, United States #605240

Actually so-called "guru", they don't. Unless you specify that you want the difference of your over-payment to go towards the principal balance, they apply that difference to your next payment. A finance company's goal is to make money, and they aren't making any when you pay less interest in the long run which is exactly what paying down the principal does.

I have been with Toyota financial for over a year and always paid more to give myself the cushion, and the difference paid NEVER goes to the principal.

Additionally I work for a large bank and accept payments on mortgages and auto loans. Unless the consumer indicates to us that they would like to make a principal only payment, the difference gets applied towards their next monthly payment.

Please do not post when you are ignorant.

to Micah Chicago, Illinois, United States #612377

Agree.This is very crappy on the part of Toyota finance.

Slime balls.

I will not finance with them next time, even if I get another Toyota.

to Credit Guru #970333

Nope.The extra goes toward interest and reduces next month's payment.

It does NOT reduce principal. There is a blurb on th eaccount screen that tells you this.

If you overpay online, you won't save a dime in the long run.You have to mail a check to pay down principal.


Don't understand why you can't. I pay more every month, online without a problem.

to Mich Dallas, Texas, United States #610587

You can pay more than the amount due, but that's not the problem.The problem is what the finance company does with the overpayment.

Applying toward your principal balance actually reduces the total interest over the life of the note (shorter time and less total interest).

Applying your overpayment to your next monthly payment only pushes back the next due date and essentially allows you to pay off the loan in a shorter amount of time but pay the same total amount of interest as if you paid out on the original payment schedule (shorter time and same interest).

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