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If you’re in the market for your first car, don’t let your limited credit history stand between you and a new Toyota. Toyota’s first-time buyer program allows qualified applicants to get behind the wheel of a brand-new Toyota without requiring a co-applicant. However, you’ll have to meet the requirements to be eligible.
- Toyota’s first-time buyer program allows drivers to buy a new Toyota without having a long credit history
- To qualify for Toyota’s program, you must provide references and show sufficient income to cover your auto loan monthly payments
- If you don’t qualify for Toyota’s first-time buyer program, there are other ways to reduce car buying costs and qualify for the financing
- Toyota’s first-time buyer program allows drivers to buy a new Toyota without having a long credit history
- To qualify for Toyota’s program, you must provide references and show sufficient income to cover your auto loan monthly payments
- If you don’t qualify for Toyota’s first-time buyer program, there are other ways to reduce car buying costs and qualify for the financing
What does the Toyota First Time Buyer program offer?
At specific Toyota dealerships, Toyota’s First Time Buyer program accommodates drivers looking for an affordable vehicle loan or hoping to take advantage of one of Toyota’s incentives who have a limited credit history. To qualify for this program, you’ll need to meet a few requirements:
- A FICO score of 610 or higher without any 90-day overdue accounts, charge-offs, collections, repossessions, or foreclosures in your credit history
- Three references (personal and verified)
- High enough income to cover basic living expenses and vehicle payments
- If you’re buying your Toyota, aminimum down paymentof 10% of MSRP or selling price (whichever is less)
- If you plan to lease your Toyota, a minimum cap cost reduction of 10% of MSRP or the agreed-upon value of the vehicle (whichever is less)
The primary goal of this program is to help buyers with a short credit history afford a vehicle. But the downside? The maximum financed amount can be at most $25,000, and approval is contingent on approved credit through participating Toyota dealerships and Toyota Financial Services. But not all applicants will qualify, and the program isn’t available in all areas.
Other restrictions may apply, so you’ll want to contact your local Toyota dealership for more details.
MORE: All the best Toyota compact SUVs
Tips for low-credit Toyota financing if you don’t qualify for the First Time Buyer program
Unfortunately, not every applicant will be approved for Toyota’s first-time car buyer program. If your application doesn’t get approved because you don’t have a big enough down payment, you have
bad credit
, or your income
doesn’t meet their eligibility requirements, it’s not the end of the road for you!There are other ways to cut car buying costs and qualify for the financing you need without relying on Toyota’s first-time buyer program.
Make auto loan refinancing easy with PriceProtect™
Make auto loan refinancing easy with PriceProtect™
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversKnow what you can afford
While your dream car may seem enticing, affordability is key here. Use a car loan payment calculator to estimate which new vehicles in Toyota’s lineup fit your budget based on your income and credit score.
For budget-minded shoppers, buying a used car should be a no-brainer, but you’d be surprised how many first-time car buyers head straight to the dealership for a sparkly new set of wheels. If you crave the new car smell and can afford it, go for it. But if you are penny-pinching, a quality pre-owned vehicle offers excellent value for money—and it can often
make financing more manageable
. Shop Toyota’s certified used vehicles for the best selection of low-mileage, reliable cars.MORE: 7 things to look for when buying a used car
Compare loan offers from multiple lenders
Getting a loan
through the finance department at your local Toyota dealership
might be convenient, but rates are often significantly higher than if you go through a lender, especially if you aren’t eligible for any Toyota incentives. Before committing to Toyota Financial Services, compare loan offers from multiple sources—your bank, a local credit union
, etc.—and get pre-approved for a loan before you head to the Toyota dealership. Get an assist from a co-signer
If you can’t meet the financing requirements to qualify for a Toyota loan on your own, you’ll need
a co-signer
to move forward. Ask around and see if a family member or friend with a good credit score (and longer credit history) would be willing to go on the finance agreement as a co-applicant. It’s a simple way to improve your odds of buying your first car—and if your income and/or credit score improve after purchasing, you can remove the co-signer
and even refinance
for a better offer.Wait a bit
If you need a car immediately, waiting might not be in the books. But if your car-buying schedule is flexible, consider delaying the purchase to give yourself time to build your credit and increase the amount of your down payment. Although both may be easier said than done, there are simple ways to improve your credit rating and
save money on car-related expenses
.MORE: Car loans for people with no credit history
Make auto loan refinancing easy with PriceProtect™
Make auto loan refinancing easy with PriceProtect™
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversThe best Toyota models for first-time car buyers
Whether you’re eligible for special financing from Toyota as a first-time buyer, picking the right vehicle is important for more than just your budget. Toyota has an extensive lineup of some of the most reliable cars on the market, so here are some of our picks for the best cars for first-time car owners:
- Toyota Corolla: With a starting MSRP of just $21,550, the Corolla is one of Toyota’s best-selling and most affordable vehicles in their lineup. And if you’re looking for something different, you’ll also find it in a hatchback, hybrid, and ultra-sporty GR Corolla.
- Toyota Corolla Cross: Looking for the same reliability as the Corolla with more space? The Corolla Cross is a great pick that’s more practical than the hatchback or sedan but still gets an EPA-estimated 32 mpg combined.
- Toyota C-HR: While brimming with personality and looks, the C-HR offers more than just style—it trades in performance for fuel economy but is surprisingly still comfortable and practical.
- Toyota RAV4: The RAV4 is one of Toyota’s best-selling SUVs that boasts a dynamic design, fuel efficiency, and plenty of options, including a hybrid, plug-in hybrid, and gas-powered. And with a starting MSRP of just under $28,000, it’s a solid 5-passenger SUV.
- Toyota Highlander: With more space than the RAV4, the Highlander is the ideal 3-row SUV for growing families and big adventures. You’ll also find it in an ultra-efficient hybrid variation that can help maximize your savings.
If any of these Toyotas pique your interest, get in touch with your local Toyota dealership and ask about available financing options before you hit the road for a test drive in your first vehicle—or better yet, get out your checkbook!
“I usually don’t leave reviews, but this app was amazing! I’m young and wanted a nice car, so I thought insurance companies would charge me extra. ButJerrychopped my usual payments in half! Thanks, Jerry.” —Gabby E.
Make auto loan refinancing easy with PriceProtect™
Make auto loan refinancing easy with PriceProtect™
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers
By Andrea Barrett
Expert Insurance Writer
Reviewed by R.E. Fulton.
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