Does Toyota Offer Zero Financing? (Process and Requirement 2022)

Yes, Toyota offers zero-rate financing to enhance their sales and facilitate customers paying for the purchases.

However, zero rate financing is restricted to certain models, and there are requirements to qualify. Let’s discuss detailed aspects of such financing.

Models and Requirements:

Toyota launched zero APR financing offers on selective models like,

  • 2020 Toyota Tacoma, 2020 Tundra, Tundra special editions (excluding TRD Pro), 2020 Toyota RAV4, 2020 Toyota Corolla, and 2020 Toyota Camry

However, their offer is only obtainable by buyers who qualify for an excellent credit score rating. Toyota has mentioned a minimum requirement Tier 1 or Tier 1+ credit score to qualify for zero financing.

Where any score from 690 to 719 is considered Tier 1 and a score above 720 is Tier 1+. It is advisable to check your credit score on Toyota’s website or credit reporting agencies before applying for the financing.

The process of Toyota zero financing is explained below.


  • Find a dealership

For obtaining Toyota zero financing, it is necessary to first contact a dealership so that you can analyze your credit standing, explore available deals, discuss your terms and come to an agreement. For other car manufacturing financiers, this is not a necessary step.

  • Meeting eligibility criteria

To prevent wastage of time and getting denied after applying, it is better to check if you qualify to receive zero financing or not. For that, you must have an excellent credit score, a history of timely payments on debts, the ability to make down payments, and the type of vehicle you want to buy should be enlisted for a zero financing offer. The dealership, company website, or credit reporting agencies like Experian can help you with these requirements.

  • Applying for Loan

You can now visit the Company’s website, fill out the online loan application form, and then wait for Toyota’s response.

  • Closing the deal

After receiving approval, you can visit the dealership to finalize the agreement.

Pros and Cons of Toyota Zero Financing


  • A 0% APR means you are getting the convenience to pay only for the actual cost of the vehicle in small amounts without having to pay any additional fees or interest. This is a golden opportunity for people to have good credit.
  • With the collaboration of dealerships and manufacturers, the whole process smoothly and efficiently saves customers time.
  • Zero financing gives Toyota and other automakers a competitive edge over other lending bodies.
  • A free pre-approval facility on the Company’s website is also a positive point.
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  • Toyota’s zero financing is average compared with competitors because it is valid for a maximum of 60 months which means that the interest rate becomes applicable if the loan duration exceeds.
  • Also, the deals are region-specific, model-specific, and customer-specific.
  • Toyota zero financing is available for short periods depending on external market demand and internal company goals.These offers are heavily advertised, but still, many might miss out on them. Contrastingly, competitors like Jeep and Ford send out low APR offers more often.

Alternate Toyota Financing Offers

Toyota provides leasing, loaning and cash rebate offers to suitable customers explained below.

Cash rebate

A cash rebate is a common sales promotion used by many sellers. It works as the customer is refunded a particular investment amount if the purchase is made in a specific quantity, at a specific time, and for specific models. Toyota also offers cash rebates like,

  • 2022 Sienna, C-HR, Corolla Cross, GR 86 and Venza: $500 cash rebate
  • 2022 Avalon and Avalon Hybrid: $1000 cash rebate
  • 2022 Prius Prime: $1,500 cash rebate
  • 2021 Tundra: $2,000 cash rebate

One must not get overexcited by the rebate amounts and ignore the fact that this return is applicable only after meeting certain criteria in terms of car purchase. Toyota also offers personalized rebate deals to attract specific market segments.

For instance, rebate offers are specially designed for military personnel, college graduates, existing customers, people with low credit, and business persons.

Although, it is a good option for decreasing your cost if you meet eligibility criteria, hold enough investment, and do not wish to spread your payments over a period. 

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Toyota lease offers are made for people who do not want to purchase a vehicle for the long term; rather, they want to use it for a particular period and pay the corresponding price for it.

Lessees get an offer to drive Toyota without paying its full price under certain terms and conditions.

 Toyota lease offers allow vehicle usage for two years or 25,000 miles, after which the leased vehicle should either be bought, returned to the Company, or exchanged for a new lease.

Currently, lease offers are available on RAV4 Hybrid, Prius Prime, C-HR, Land Cruiser, etc. But you should check the Toyota inventory before availing of any offer.

Each Toyota leased vehicle comes with a Toyota Care maintenance plan and roadside assistance for two years.


Granting of loans is thought of as the most common method of financing. Toyota has various loan offers for different models, durations, interest rates, and buyer credit ratings.

The loan offer works like the one who wishes to buy a Toyota borrows a loan from the manufacturing company, bank, or private lending institutions to make the payment.

Then, the loan is returned to the lender over a set duration on a specified interest rate. Banks’ typical interest rate is 3.99% for auto loans.

Comparatively, Toyota offers lower rates, making financing easier. The factor that decides low or high-interest rate on a deal is the borrower’s creditworthiness which is determined by his/her credit score, payment history, debt-to-credit ratio, length of credit, and type of credit.

  Following are some of the non-zero APR Toyota financing deals; more deals can be viewed on Toyota’s website.

  • 2021 Toyota C-HR: 1.9% APR up to 72 months
  • 2022 Prius: 2.49% APR for up to 72 months
  • 2022 Camry, Camry Hybrid, Corolla, Corolla Hybrid, Highlander, Highlander Hybrid, RAV4, RAV4 Hybrid, and Tundra: 2.49% APR for up to 60 months

About Toyota Motor Company

Toyota, a renowned name in automakers, started 75 years back in 1937 in Japan. Today, it stands out amidst its competitors as one of the strongest and most successful automobile manufacturer conglomerates.

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Toyota’s success is based on its principle of creating a lifestyle and not just a vehicle. The Company prioritizes customer preferences, environmental sustainability, and continuous innovation.

With a strong brand name and high demand comes challenging prices; that is why manufacturers offer financing opportunities to stimulate sales.


Toyota is a big name for unbeatable automobile quality and reliability; therefore its zero financing offers are greatly sought.

The advantages and disadvantages of Toyota financing might be perceived differently by every individual based on personal circumstances.

Therefore, one must do sufficient market research before finalizing a financing decision.

However, to qualify for zero-rate financing, there is a need to have a good credit score developed by ensuring timely payments.

Even, if you are not qualified for the zero rate financing, different financing schemes can be applied including lease, cash rebate, and raising a loan to finance the purchase.

Frequently asked questions

Which Credit Bureau Report Toyota Uses?

Automobile companies usually use FICO credit reports. It’s important to note that automobile companies also use auto credit scores. This credit score can differ from what you normally see in a credit report. It’s due to the reason that this score incorporates additional risk brought by car financing.

What’s Exactly Meant by Zero APR financing?

Zero APR means that the car seller does not charge any interest on the asset sold. Instead, such an arrangement is agreed to facilitate the customer in purchasing expensive assets like a car. 

However, sellers do charge interest if the borrower exceeds payment terms. Further, such financing requires significant creditworthiness.

Why is Trend of Zero APR Car Financing Increasing?

It’s because of higher inflation in the economy, and increasing competition among car manufacturers. This trend is increasing as it facilitates people to purchase when they do not have the full amount to pay for the car.