Toyota Refinancing (August 2025)

Paying too much on your current auto loan?

By refinancing your Toyota with Way.com, you could:

• Get lower Annual Percentage Rates (APRs)
• Lower your monthly payments to manageable levels
• Change your loan's terms and conditions
• Finance lease buyouts
• Add or remove a co-borrower or co-signer
• Get add-ons like Vehicle Service Contracts/GAP insurance

What is Toyota refinancing?

When you refinance your Toyota car loan, you essentially pay off the loan balance by taking a new loan that has better terms and conditions . The new loan will typically have a lower APR, lower monthly payments, and better clauses suited to your budget.

If done right, refinancing can help you save thousands every year and help take the stress off your finances!

Why should I refinance my Toyota?

When you first financed your Toyota, you may have signed on for an APR that seemed reasonable for your credit score, payment history, etc. However, you might deserve a better APR for your score - or your dealership or bank may have overcharged you!

Don't settle for overpaying! By refinancing your Toyota, you could:

• Lower your APR: Even a 1% reduction in your APR can save you hundreds of dollars annually
• Lower your monthly payment: Find an amount that fits your budget without being a drain on your finances
• Add more benefits to your loan: You can add GAP, ESC, and other coverages that help hedge against any future car damages
• Add or remove a co-borrower/co-signer: Having someone take a loan with you can get you better APRs because of lower risk of default
• Get cash-out refinancing: For immediate expenses, you can borrow against the amount of equity you own in the car
• Buyout your lease at the end of the term

How much can you save when refinancing with Way.com?

With the average monthly payment in the US crossing $600, you need all the help you can get to save money! When done right, you can refinance your Toyota to reduce your APR by as much as 2% and save as much as $1500 every year.

Cash-back auto refinancing is also a nifty option to get cash in hand for immediate expenses by putting up your Toyota as collateral.

When should you refinance your Toyota?

Ideally, you should not rush to refinance just because you realized you're overpaying. Work on improving your financial position before applying - it can help you get even better APRs!

Consider refinancing your Toyota in the following situations:

• If at least 60-90 days have passed since you first took the current loan
• If your credit score has increased by since the first loan
• If you've become eligible for a better loan
• If your monthly expenses have increased and you want to save money
• If you want to add a co-signer or co-borrower to your loan
• If your car has become old and is not worth the high monthly payments

Toyota Refinance Rates (June 2023)

What Toyota models can I refinance?

You can refinance almost any Toyota currently being sold in the market. The most popular Toyota models currently are:

• Camry
• Highlander
• Prius
• Prius Prime
• Sienna
• Avalon

If you own a Toyota EV or hybrid, check with the lender before applying.

What documents are required for Toyota refinancing?

Having all the necessary documents ready will help you breeze through the refinance process easily. Ensure you meet the following criteria and keep the following ready:

• Your credit score : Ideally, a score above 660 will get you better APRs than what you currently have. Also keep track of your credit score using the free credit reports from bureaus.
• 14-day payoff amount : Call your lender and ask them for the remaining loan balance including the next 14 days' principal and interest.
• Car Loan-to-value ratio : The LTV will tell you if you are 'upside-down' or 'underwater' on your car loan (i.e, owe more than what the car is worth)
• Loan term remaining : At least six months have passed since your initial loan, and you should have at least a year left on the existing loan.
• Prepayment penalty : Make sure that your existing loan provider does not have a clause penalizing you for paying off the loan early.

Also keep your personal details ready, like:

• Vehicle information: VIN, title, registration, number, and mileage
• Income information: Salary slips, pay stubs, and tax returns
• Personal information: Driver's license and Social Security Number

Will my Toyota be eligible for refinancing?

Your Toyota will typically pre-qualify for refinancing if:

• It is less than 10 years old
• It has a mileage of less than 150,000
• You have a valid driving license
• You have a valid registration
• You have a consistent payment history on your current loan
• You have a verifiable income source
• You have full coverage insurance

How to refinance my Toyota with Way.com

Step 1: Calculate how much you can save

Use an online auto loan refinance calculator to input your desired APR and loan term. If the estimated monthly payment shown by the calculator is lower than your current payment, it's a green light for refinancing!

Step 2: Apply to refinance lenders with Way.com

Don't repeat the same mistake you made last time by not shopping around for offers. Use Way.com to compare rates from multiple trusted lenders simultaneously. Some of them allow you to pre-qualify based on a soft credit pull too.

Step 3: Choose an offer and start saving

When you find an offer you like, you can easily submit all the supporting documents and complete the application. At this point, there will be a hard credit inquiry which will temporarily affect your credit score - but you can easily make that up with consistent payments.

Can I add more benefits to my loan when refinancing?

If you missed out on adding benefits in your initial loan, you can do so when refinancing. Some popular add-ons include:

• Guaranteed Asset Protection (GAP): If your car is totaled in an accident and you still have a loan balance to pay off, GAP insurance covers the difference between what the car is worth and what you owe on it.
• Extended Service Contract (ESC): Also called Extended Warranty or Vehicle Service Contract, it covers any unexpected breakdowns and problems arising after the expiry of your manufacturer's warranty.

Can you refinance a Toyota with bad credit?

Though it's best to refinance when your credit score has improved, you can also refinance a vehicle with bad credit. However, you may have to make some expensive adjustments upfront to get a better APR.

You may have to:

• Make a larger down payment at the time of refinancing
• Get a co-borrower or co-signer to reduce the risk on the lender's side
• Search for lenders specializing in bad credit loans
• Settle for a higher APR (which could affect your savings in the long run)

It's always best to build your credit score before refinancing. You can get better deals by using refinance aggregators like Way.com as well.

Why our Toyota Refinance Program is great for you

At Way.com, we understand how hard it is to finance and maintain your vehicle. Owning a car should be a joy, not a struggle. However, rising vehicle costs, fuel prices, and auto loan payments can put stress on your wallet!

That's where we come in - to make car ownership simplified. And we're starting with lowering your car payments! With Way.com, you can easily:

• Get connected to the best refinance lenders
• Compare offers and rates from multiple lenders
• Refinance lease buyouts
• Include additional benefits like insurance, extended warranty, etc
• Refinance with a bad credit score

... and much more!

What is Way.com?

Way.com is the country's leading car services marketplace, working to make car ownership affordable to millions of Americans. You can also save more than $1500/year through our super auto app and website that offers:

• Auto insurance and refinance
• Airport parking and city parking
• Car wash services
• Roadside assistance and Cashback on gas

Way.com has a 4.5 rating on Trustpilot, with more than 3 million satisfied customers. The Way app also has a 4.7 rating on Google Play and 4.9 on the iOS app store.