Overpaying Toyota finance plan?

meryll83

So we're getting a New Yaris, and on asking the salesman about overpaying he told us this is something relatively new but it can be done and would reduce future monthly payments.

Hate to be a doubter, but as he was reasonably vague about this, is he correct? And are there any limits on the amount we can overpay by any given month?

Any advice is much appreciated

bargainbetty

Perhaps you should ask to see a copy of the credit agreement, and ask him to point out the specific clauses that make the overpayments possible? Without seeing a specific contract, it would be hard to offer reassurance either way.

meryll83

bargainbetty wrote: »

Perhaps you should ask to see a copy of the credit agreement, and ask him to point out the specific clauses that make the overpayments possible? Without seeing a specific contract, it would be hard to offer reassurance either way.

Thanks for the reply - I assume there will be some more paperwork to come when we pick up the car, as we have only signed an order form and FSA insurance document so far. I'm hoping this is where the full T&Cs will be and overpayments will be mentioned within these.
I've tried looking on the Toyota website, but the T&Cs there seem limited and refer to other T&Cs within there (wherever these may be!)
Just wondered if anybody knew the answer in the meantime, as it's 3 weeks until we're due to pick up...

chanz4

hi yes since think last year you are allowed to over pay on agreements.

BugsyBrowne

https://tfsonline.toyotafinance.com.au/Help/FAQ.aspx

meryll83

chanz4 wrote: »

hi yes since think last year you are allowed to over pay on agreements.

Do you know if there's a limit to how much you can overpay by?

meryll83

BugsyBrowne wrote: »

https://tfsonline.toyotafinance.com.au/Help/FAQ.aspx

Thanks for this - looks like the Australian site though, will the terms be the same for the UK?

Apples2

You need to be sure that not only can you overpay (which you should be able to do), but what effect it has.

It may be the repayments remain the same but the period of the finance is reduced (you finish it early), or the monthly repayments reduce and the priod remains the same.

I wouldn't take the dealers word as gospel. He will be on Holiday if his advice was wrong and you want to complain later. All he wants is your signature and nothing else.

CrazyAngel_3

New legislation was brought in last year which allows over payments to be made on a CCA regulated agreement. The caveat to this is that you must contact the finance company before hand to let them know that you want a 'partial early settlement'. The finance company will then be able to calculate the future monthly payments going foward, or reduce the term, whichever you prefer.

meryll83

Thanks for the advice, sounds like its doable then, might just need to get the right person on the phone when it comes to the time...

Mrs_Ryan

We have a new (ish - 59 reg) Yaris on the Toyota finance through Barclays Partner Finance and they were more than happy to take the fat overpayment we offered them but they have neither reduced the monthly payments or reduced the term :mad: They ended up getting their knuckles rapped when they told us that would include that month's payment which they lied through their teeth about, we got six months of arrears calls before I got cheesed off and kept them on the phone for an hour and a half while they investigated.
We got an apology and 6 months worth of late payment markers removed. So beware...