Toyota Recall Helps Bad Credit Customers
by Steve Cypher on Thursday, March 4th, 2010Consumers with bad credit can get some help out of latest efforts to retain market share from Japanese manufacturer Toyota.
Bad credit car loans
At Auto Credit Express our business is to match up consumers with bad credit, who have filled out our secure online bad credit car loan application, to a dealer in their area that can help get them financed. These dealers from all across the U.S. use a wide spectrum of lenders and specialize in helping customers with bad credit find the right vehicle and the right lender so that they can begin the process of reestablishing their car credit and raising their FICO scores.
We also do our best to educate these consumers on the bad credit car loan process, since making the wrong decision could result in further negative entries on their reports as well as lower credit scores.
New cars
The process of reestablishing auto credit can be an expensive one – especially if a credit-challenged consumer chooses the wrong car. Although new cars are considerably more reliable than most used cars, often the added expense puts them out of reach for many bad credit car loan customers.
Fortunately, new car incentives, usually in the form of customer cash-style rebates, can not only lower the price of a new vehicle; they can also contribute, at least in part, to the down payment requirements of many subprime lenders. This can be especially important given the current economic situations of many cash-strapped car buyers.
Toyota’s March incentive program
Earlier this month, Toyota Financial Services unveiled a new and aggressive finance and lease program highlighted by 0% financing and special leases on some of their best-selling models designed to win back customers following all the bad news surrounding the recalls of Toyota vehicles. Unfortunately, both the finance and lease offers are reserved only for those “most qualified” customers, a category that doesn’t include consumers with bad credit.
But by looking more closely at Toyota’s incentive programs for March, we can see that bad credit customers interested in a Toyota can save anywhere from $750 to $1,000 of some of the most affordable models the company makes. In particular, we are going to concentrate on those models that have an entry level price (after rebates) of under $20,000.
And while most of Toyota’s vehicles surpass the $20,000 price that would make them too expensive for the majority of bad credit buyers, new car incentives on their three most affordable are available during the month of March for these 2010 models, which are available to all buyers regardless of their credit score:
2010 Toyota Yaris – $1,000
2010 Toyota Corolla – $1,000
2010 Toyota Matrix – $750
2010 Toyota Yaris and Corolla
The Yaris is a good example of a quality small car that is unaffected by any of the company’s recalls. With a base sticker price of $14,155 that includes an automatic transmission, the delivered price in most states would be about $15,300 – before deducting the $1,000 in customer cash.
The Corolla LE with an automatic transmission is $17,600 and a delivered price would be close to $19,000 and at the upper end of affordable cars for bad credit customers. Still, we feel that the resale value of Corollas will remain strong and the $1,000 in customer cash is something Toyota rarely offers Corolla buyers.
The Bottom Line
New car rebates and customer cash are a great way to not only make a vehicle more affordable, but also contribute towards your down payment. There is also no better way to begin reestablishing your car credit than by filling out our secure online bad credit car loan application.
At Auto Credit Express, we feel it’s important that you make the right choices when it comes to a bad credit car loan buying decision. Those choices include finding the right dealer and the right car to help you reestablish your car credit. Any of the affordable models listed above, with the additional customer cash, will make a bad credit car loan more affordable, while keeping the interest costs down.
For more information on the bad credit auto loan process and to begin the application process, please visit our web site at www.autocreditexpress.com.
Tags: auto loan, car loan quote, chrysler employee discount, credit bureau, credit score, free car loan quote, gm, gm employee discount, subprime, Used Cars, we finance everyone
This good for folks who are thinking about buying *this year*. But what about the millions that bought vehicles from 2005 to 2010. They might be stuck with highest interest loans or APR and have no ability to refinance this loan on a recalled car that is completely worthless. Toyota dropped the ball big time and I feel there needs to be some sort of serious punishment for the company and an award for the buyers of their vehicles to compensate for the loss in residual value in addition to the other worries that this entire debacle has credited.
Drivers drive the vehicles on the roads everyday, and Toyota just sits their counting the cash as it rolls in without a second thought.
Are these rebates taxable by the state or federal government and in addition am i responsible for taxes before rewards points toward the purchase of my new car?Thank you
Andrea,
As far as we know, there are no states that tax new car rebates in the form of customer cash, but there may be some that do, so you should contact your state department of treasury to make sure.
You are probably responsible for “taxes before reward points”, but you should check with your credit card/rewards card provider to verify this.
The info is good to know. It is sometimes hard to keep track with all the recalls out there. Your website is another good source that I will include and check from now on for updates. Keep up the hard work.