Any experience with Toyota Income Driver Notes?

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Stinky
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

From previous posts in this thread, it appears that a number of entities are issuing notes like these. Companies mentioned upthread include Ford, GM, Mercedes, and Dominion Energy, plus Toyota.

Does anyone know of a source that lists most, if not all, of the companies issuing such notes? I can’t find one online, but maybe I just haven’t looked in the right place.

It would sure be interesting to compare and contrast the offerings of multiple companies. Given the interest rate paid and credit rating of TMCC, I expect that the Toyota notes will look strong. But another entity might be as good or better. I just don’t know where to look to find them.
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Re: Any experience with Toyota Income Driver Notes?

Post by retired@50 »

Stinky,
Here is the GM site. I happened to know this because I know people who work for GM.

https://www.rightnotes.com/

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Re: Any experience with Toyota Income Driver Notes?

Post by RetiredNewbie »

I just got an email from Toyota approving my note. Timeline as follows...

3/1/21 Applied for individual account
3/4/21 Received email approving note
3/8/21 Scheduled “Next Execution Date” for ACH transfer of initial investment

I don’t know why they’re going to wait until March 8th to pull the funds from my savings account, but it doesn’t matter to me. I’m surprised that they approved it so quickly. My FICO score has been between 825 and 850 for many years, if that has anything to do with it.
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Re: Any experience with Toyota Income Driver Notes?

Post by MishkaWorries »

RetiredNewbie wrote: Thu Mar 04, 2021 9:33 pm I just got an email from Toyota approving my note. Timeline as follows...

3/1/21 Applied for individual account
3/4/21 Received email approving note
3/8/21 Scheduled “Next Execution Date” for ACH transfer of initial investment

I don’t know why they’re going to wait until March 8th to pull the funds from my savings account, but it doesn’t matter to me. I’m surprised that they approved it so quickly. My FICO score has been between 825 and 850 for many years, if that has anything to do with it.
Strange. I received my approval email yesterday. My account shows zero balance. Where do you see the Next Execution Date information?
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Re: Any experience with Toyota Income Driver Notes?

Post by indexfundfan »

MishkaWorries wrote: Thu Mar 04, 2021 10:18 pm
RetiredNewbie wrote: Thu Mar 04, 2021 9:33 pm I just got an email from Toyota approving my note. Timeline as follows...

3/1/21 Applied for individual account
3/4/21 Received email approving note
3/8/21 Scheduled “Next Execution Date” for ACH transfer of initial investment

I don’t know why they’re going to wait until March 8th to pull the funds from my savings account, but it doesn’t matter to me. I’m surprised that they approved it so quickly. My FICO score has been between 825 and 850 for many years, if that has anything to do with it.
Strange. I received my approval email yesterday. My account shows zero balance. Where do you see the Next Execution Date information?
You need to follow the link in the welcome email to complete the enrollment. After that, you will be able to see "Next Execution Date".
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Re: Any experience with Toyota Income Driver Notes?

Post by RetiredNewbie »

MishkaWorries wrote: Thu Mar 04, 2021 10:18 pm Strange. I received my approval email yesterday. My account shows zero balance. Where do you see the Next Execution Date information?
It has changed. When I logged in last night after receiving my approval email, it was on the home page. This morning it's no longer there. Now to see it I have to click on the "View History" link on the home page, and then select "All Pending Transactions". Then this pops up...

03/08/2021 ELEC INVEST ORIG - INITIAL ACH INVESTMENT $1,000.00
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Re: Any experience with Toyota Income Driver Notes?

Post by indexfundfan »

RetiredNewbie wrote: Fri Mar 05, 2021 7:59 am
MishkaWorries wrote: Thu Mar 04, 2021 10:18 pm Strange. I received my approval email yesterday. My account shows zero balance. Where do you see the Next Execution Date information?
It has changed. When I logged in last night after receiving my approval email, it was on the home page. This morning it's no longer there. Now to see it I have to click on the "View History" link on the home page, and then select "All Pending Transactions". Then this pops up...

03/08/2021 ELEC INVEST ORIG - INITIAL ACH INVESTMENT $1,000.00
I believe the ACH cut-off time is 7.30am CT. So once that time passes, it moves into pending status.
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Re: Any experience with Toyota Income Driver Notes?

Post by sleepysurf »

I'm seriously considering rolling some CD $$ maturing next month into this fixed income vehicle (pun intended). Although riskier than an FDIC insured product, or state-insured MYGA, it probably falls between the two relative to risk and reward, with acceptable liquidity as well.
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Re: Any experience with Toyota Income Driver Notes?

Post by MishkaWorries »

Can anyone else get on the website? I've tried from my laptop and my mobile and I just get the timed out error message. I confirmed their server is down.

Can't say the clunkiness of the website is making my feel secure. I do like the simplicity of their site, I just wish it was more user friendly.

Maybe all the Bogleheads are rushing to put in their cash and it made the site crash :sharebeer
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

MishkaWorries wrote: Fri Mar 05, 2021 9:32 am Can anyone else get on the website? I've tried from my laptop and my mobile and I just get the timed out error message. I confirmed their server is down.

Can't say the clunkiness of the website is making my feel secure. I do like the simplicity of their site, I just wish it was more user friendly.

Maybe all the Bogleheads are rushing to put in their cash and it made the site crash :sharebeer
The website worked for me early this morning. And it's working right now - just checked.
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Re: Any experience with Toyota Income Driver Notes?

Post by Wiggums »

The website worked for me just now, but I notice some sluggishness earlier today.
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Re: Any experience with Toyota Income Driver Notes?

Post by Zosima »

RetiredNewbie wrote: Thu Mar 04, 2021 9:33 pm I just got an email from Toyota approving my note. Timeline as follows...

3/1/21 Applied for individual account
3/4/21 Received email approving note
3/8/21 Scheduled “Next Execution Date” for ACH transfer of initial investment
Similar timeline for me:

3/3/21: Applied for account
3/5/21: Received e-mail approving note
3/9/21: Scheduled “Next Execution Date” for ACH transfer of initial investment

It appears that the timeline is 2-3 days for approval and 6-7 for funding. It is not clear why there is a delay in funding from approval.
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

gjlynch17 wrote: Sat Mar 06, 2021 9:05 am
RetiredNewbie wrote: Thu Mar 04, 2021 9:33 pm I just got an email from Toyota approving my note. Timeline as follows...

3/1/21 Applied for individual account
3/4/21 Received email approving note
3/8/21 Scheduled “Next Execution Date” for ACH transfer of initial investment
Similar timeline for me:

3/3/21: Applied for account
3/5/21: Received e-mail approving note
3/9/21: Scheduled “Next Execution Date” for ACH transfer of initial investment

It appears that the timeline is 2-3 days for approval and 6-7 for funding. It is not clear why there is a delay in funding from approval.
I can definitely say that fundings after the initial one move a lot faster.

See my post above for timelines on subsequent fundings, withdrawals, and interest credited. Link follows:

viewtopic.php?p=5853157#p5853157
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Re: Any experience with Toyota Income Driver Notes?

Post by SpaceCowboy »

indexfundfan wrote: Thu Mar 04, 2021 7:47 am I just noticed that both Toyota Income Driver and GM RightNotes are administered by www.eaccountservices.com. So they look to have very similar online features.

The other thing I note is that GM is also paying 1.5%. So hopefully that encourages Toyota to maintain the same 1.5% rate to stay competitive with GM.
They are both administered by BNY Mellon. That’s their website, which is only so, so.
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Re: Any experience with Toyota Income Driver Notes?

Post by RetiredNewbie »

Timeline update...

3/1/21 Applied for individual account
3/4/21 Received email approving note
3/8/21 Initial Investment deducted from savings account
3/9/21 Initial Investment credited to account
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Re: Any experience with Toyota Income Driver Notes?

Post by GeraniumLover »

Has anyone been able to link their Toyota IncomeDriver Notes account to an aggregator, such as Personal Capital? If so, what did you use as the financial institution when setting up the link?
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Re: Any experience with Toyota Income Driver Notes?

Post by stay_the_course »

Has anyone been able to use the website to check their balance and account details? I was able to register on the website and set up initial funding, but I have not been able to login after that since last week to check the details :confused
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

stay_the_course wrote: Mon Mar 15, 2021 1:58 pm Has anyone been able to use the website to check their balance and account details? I was able to register on the website and set up initial funding, but I have not been able to login after that since last week to check the details :confused
Website works just fine for me. Just now logged in, and everything is in proper order.

It seemed that I was having some problems early on with getting onto the site - before my initial funding had cleared and posted. At that time, I learned that I had click on the link in the most recent "confirmation" email to get in.

That workaround disappeared now that my account is fully open, and funded with both initial and subsequent deposits. Plus one teensy withdrawal just to check it out.
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Re: Any experience with Toyota Income Driver Notes?

Post by stay_the_course »

Stinky wrote: Mon Mar 15, 2021 2:02 pm
stay_the_course wrote: Mon Mar 15, 2021 1:58 pm Has anyone been able to use the website to check their balance and account details? I was able to register on the website and set up initial funding, but I have not been able to login after that since last week to check the details :confused
Website works just fine for me. Just now logged in, and everything is in proper order.

It seemed that I was having some problems early on with getting onto the site - before my initial funding had cleared and posted. At that time, I learned that I had click on the link in the most recent "confirmation" email to get in.

That workaround disappeared now that my account is fully open, and funded with both initial and subsequent deposits. Plus one teensy withdrawal just to check it out.
Well I'll be... I just tried the link from the email and that did work. Thanks for the tip!
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Re: Any experience with Toyota Income Driver Notes?

Post by quaternion »

Ye olde GMAC Demand Notes (from before the bankruptcy) came with a checkbook and honored ACH pulls. One could then pay credit card bills from the account, making it effective and convenient for cash management. But I bailed on that when the storm-clouds for GM appeared on the horizon (well, maybe when it started to drizzle), and Ally (neé GMAC) has since ended the program.

These new Toyota and GM demand accounts appear to be clones of the old GMAC program (I think the BNY Mellon also managed the old GMAC account), but minus the checkbook. New GM Right Notes claims to support direct deposit. Has anyone tried to initiate an ACH push/pull to/from these accounts from another institution?
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Re: Any experience with Toyota Income Driver Notes?

Post by anonsdca »

SpaceCowboy wrote: Tue Mar 02, 2021 7:40 pm I've completed my enrollment, initial deposit and additional transfers.
I think this is a really good offering in the current interest rate environment.
A couple of items. With the Mercedes version, MBFS, you have to be an accredited investor and the minimum for a fee free note is much higher. Toyota only requires US citizenship and SSN. Minimum is $500 to open and $250 maintenance.
You are only permitted to link one bank account, so make sure to use your main checking or a good online hub account like Ally, which allows a large number of linked accounts.
I just wonder is the interest rate premium will last.
What is this maintenance fee of $250? Is that a fee they take annually?
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Re: Any experience with Toyota Income Driver Notes?

Post by dukeblue219 »

anonsdca wrote: Sun Mar 28, 2021 1:35 pm
SpaceCowboy wrote: Tue Mar 02, 2021 7:40 pm I've completed my enrollment, initial deposit and additional transfers.
I think this is a really good offering in the current interest rate environment.
A couple of items. With the Mercedes version, MBFS, you have to be an accredited investor and the minimum for a fee free note is much higher. Toyota only requires US citizenship and SSN. Minimum is $500 to open and $250 maintenance.
You are only permitted to link one bank account, so make sure to use your main checking or a good online hub account like Ally, which allows a large number of linked accounts.
I just wonder is the interest rate premium will last.
What is this maintenance fee of $250? Is that a fee they take annually?
No, you must maintain a $250 balance. Not a maintenance fee.
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

anonsdca wrote: Sun Mar 28, 2021 1:35 pm
SpaceCowboy wrote: Tue Mar 02, 2021 7:40 pm I've completed my enrollment, initial deposit and additional transfers.
I think this is a really good offering in the current interest rate environment.
A couple of items. With the Mercedes version, MBFS, you have to be an accredited investor and the minimum for a fee free note is much higher. Toyota only requires US citizenship and SSN. Minimum is $500 to open and $250 maintenance.
You are only permitted to link one bank account, so make sure to use your main checking or a good online hub account like Ally, which allows a large number of linked accounts.
I just wonder is the interest rate premium will last.
What is this maintenance fee of $250? Is that a fee they take annually?
That’s not a maintenance fee.

That’s the minimum account balance. I assume below that level they’ll close you out.
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Re: Any experience with Toyota Income Driver Notes?

Post by anonsdca »

Stinky wrote: Sun Mar 28, 2021 1:38 pm
anonsdca wrote: Sun Mar 28, 2021 1:35 pm
SpaceCowboy wrote: Tue Mar 02, 2021 7:40 pm I've completed my enrollment, initial deposit and additional transfers.
I think this is a really good offering in the current interest rate environment.
A couple of items. With the Mercedes version, MBFS, you have to be an accredited investor and the minimum for a fee free note is much higher. Toyota only requires US citizenship and SSN. Minimum is $500 to open and $250 maintenance.
You are only permitted to link one bank account, so make sure to use your main checking or a good online hub account like Ally, which allows a large number of linked accounts.
I just wonder is the interest rate premium will last.
What is this maintenance fee of $250? Is that a fee they take annually?
That’s not a maintenance fee.

That’s the minimum account balance. I assume below that level they’ll close you out.
Got it! Thank you both!
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Re: Any experience with Toyota Income Driver Notes?

Post by anonsdca »

anonsdca wrote: Sun Mar 28, 2021 1:55 pm
Stinky wrote: Sun Mar 28, 2021 1:38 pm
anonsdca wrote: Sun Mar 28, 2021 1:35 pm
SpaceCowboy wrote: Tue Mar 02, 2021 7:40 pm I've completed my enrollment, initial deposit and additional transfers.
I think this is a really good offering in the current interest rate environment.
A couple of items. With the Mercedes version, MBFS, you have to be an accredited investor and the minimum for a fee free note is much higher. Toyota only requires US citizenship and SSN. Minimum is $500 to open and $250 maintenance.
You are only permitted to link one bank account, so make sure to use your main checking or a good online hub account like Ally, which allows a large number of linked accounts.
I just wonder is the interest rate premium will last.
What is this maintenance fee of $250? Is that a fee they take annually?
That’s not a maintenance fee.

That’s the minimum account balance. I assume below that level they’ll close you out.
Got it! Thank you both!
I signed up today, got accepted but when I tried to log in, I just get a spinning circle. Not a good sign. I have received no emails from them saying "Hi welcome" type of thing.
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Re: Any experience with Toyota Income Driver Notes?

Post by indexfundfan »

anonsdca wrote: Sun Mar 28, 2021 5:11 pm
anonsdca wrote: Sun Mar 28, 2021 1:55 pm
Stinky wrote: Sun Mar 28, 2021 1:38 pm
anonsdca wrote: Sun Mar 28, 2021 1:35 pm
SpaceCowboy wrote: Tue Mar 02, 2021 7:40 pm I've completed my enrollment, initial deposit and additional transfers.
I think this is a really good offering in the current interest rate environment.
A couple of items. With the Mercedes version, MBFS, you have to be an accredited investor and the minimum for a fee free note is much higher. Toyota only requires US citizenship and SSN. Minimum is $500 to open and $250 maintenance.
You are only permitted to link one bank account, so make sure to use your main checking or a good online hub account like Ally, which allows a large number of linked accounts.
I just wonder is the interest rate premium will last.
What is this maintenance fee of $250? Is that a fee they take annually?
That’s not a maintenance fee.

That’s the minimum account balance. I assume below that level they’ll close you out.
Got it! Thank you both!
I signed up today, got accepted but when I tried to log in, I just get a spinning circle. Not a good sign. I have received no emails from them saying "Hi welcome" type of thing.
It takes a business day or two for them to approve you and send out the welcome email.
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

indexfundfan wrote: Sun Mar 28, 2021 5:14 pm
anonsdca wrote: Sun Mar 28, 2021 5:11 pm I signed up today, got accepted but when I tried to log in, I just get a spinning circle. Not a good sign. I have received no emails from them saying "Hi welcome" type of thing.
It takes a business day or two for them to approve you and send out the welcome email.
When you do get approved, click on the link in the welcome email to log in.
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Re: Any experience with Toyota Income Driver Notes?

Post by anonsdca »

Stinky wrote: Sun Mar 28, 2021 5:39 pm
indexfundfan wrote: Sun Mar 28, 2021 5:14 pm
anonsdca wrote: Sun Mar 28, 2021 5:11 pm I signed up today, got accepted but when I tried to log in, I just get a spinning circle. Not a good sign. I have received no emails from them saying "Hi welcome" type of thing.
It takes a business day or two for them to approve you and send out the welcome email.
When you do get approved, click on the link in the welcome email to log in.
Ok, I will wait. Thanks.
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Re: Any experience with Toyota Income Driver Notes?

Post by SmileyFace »

Interesting investment for all those that ask "should I take the 0% (or 0.9%) loan from TMCC" across this forum. If you are about to pay cash for your car - take the TMCC loan then invest the money back into TMCC.
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Re: Any experience with Toyota Income Driver Notes?

Post by jpmorganfunds »

Stinky wrote: Wed Mar 03, 2021 5:38 am My ACH transfer request from Toyota to my bank went very quickly. I submitted to Toyota before 7:30am yesterday morning (Tuesday), and the funds are in my bank account this morning.
Are there any transfer limits?
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Re: Any experience with Toyota Income Driver Notes?

Post by anon_investor »

SmileyFace wrote: Mon Mar 29, 2021 9:35 am Interesting investment for all those that ask "should I take the 0% (or 0.9%) loan from TMCC" across this forum. If you are about to pay cash for your car - take the TMCC loan then invest the money back into TMCC.
How are they making money?
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Re: Any experience with Toyota Income Driver Notes?

Post by HueyLD »

“ Called “variable denomination floating rate demand notes,” the securities are basically unsecured bonds, paid by the company’s cash from operations. There is no public market and investors can typically withdraw their money at will. Rates can be changed at any time by the company, which can call the securities at its discretion.


“Financial advisers, however, often advise clients against tying up their money in one company. Those who rely on fixed-income payments as a form of income, such as retirees, should particularly avoid such concentration, says Larry Swedroe, chief research officer at Buckingham Strategic Wealth.

“I would want to buy a huge portfolio of hundreds of these so I wouldn’t have the idiosyncratic risk of Toyota,” he said. “The average investor buying this stuff is not going to be able to analyze the risk in each of these floating rate notes.””

https://www.wsj.com/articles/car-maker- ... 1605781801
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Re: Any experience with Toyota Income Driver Notes?

Post by pseudoiterative »

anon_investor wrote: Mon Mar 29, 2021 10:47 pm
SmileyFace wrote: Mon Mar 29, 2021 9:35 am Interesting investment for all those that ask "should I take the 0% (or 0.9%) loan from TMCC" across this forum. If you are about to pay cash for your car - take the TMCC loan then invest the money back into TMCC.
How are they making money?
my naive guess is that perhaps they lose money on the financing but they make money by selling the cars. offering cheap finance can help more people buy new toyotas than would otherwise. perhaps TMCC is run at a loss, or perhaps TMCC is run at a small profit and also receives funding from other bits of toyota that make money by selling cars.

Another angle is that over the last 10 years or so, toyota achieved an annual return on invested capital of something in the range from 1% to 6%. While this is not very large, it is usually better than 1.5% rate being offered to investors for these notes. So perhaps if Toyota accepts outside capital from the market to fund TMCC operations, they free up more of their own capital to use in other more profitable investments.
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

jpmorganfunds wrote: Mon Mar 29, 2021 10:27 pm
Stinky wrote: Wed Mar 03, 2021 5:38 am My ACH transfer request from Toyota to my bank went very quickly. I submitted to Toyota before 7:30am yesterday morning (Tuesday), and the funds are in my bank account this morning.
Are there any transfer limits?
Neither the website nor the prospectus shows any limits on the amount of transfers.
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Re: Any experience with Toyota Income Driver Notes?

Post by z3r0c00l »

HueyLD wrote: Tue Mar 30, 2021 2:51 amRates can be changed at any time by the company, which can call the securities at its discretion.
That's all I needed to see, they could (and likely will) lower the rates at some point. Or in a few months 1.5% won't seem so great anyway.
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

z3r0c00l wrote: Tue Mar 30, 2021 5:29 am
HueyLD wrote: Tue Mar 30, 2021 2:51 amRates can be changed at any time by the company, which can call the securities at its discretion.
That's all I needed to see, they could (and likely will) lower the rates at some point. Or in a few months 1.5% won't seem so great anyway.
The referenced WSJ article says that TMCC was paying 2.0% for most of 2020, and then reduced the rate to 1.5% in November 2020. Of course the rate could go lower.
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Re: Any experience with Toyota Income Driver Notes?

Post by anonsdca »

I opened an account yesterday and funded. No note number yet.
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Re: Any experience with Toyota Income Driver Notes?

Post by Kookaburra »

Does opening an account result in a hit to one’s credit score?
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
Not to mine.

Of course, YMMV.
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Re: Any experience with Toyota Income Driver Notes?

Post by Kookaburra »

Stinky wrote: Sun Apr 04, 2021 4:50 pm
Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
Not to mine.

Of course, YMMV.
Do you know if it’s considered a soft credit pull or hard pull?
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Re: Any experience with Toyota Income Driver Notes?

Post by Stinky »

Kookaburra wrote: Sun Apr 04, 2021 4:55 pm
Stinky wrote: Sun Apr 04, 2021 4:50 pm
Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
Not to mine.

Of course, YMMV.
Do you know if it’s considered a soft credit pull or hard pull?
I follow my credit score via Credit Karma, which shows info from Equifax and Transunion. As of this afternoon, Neither shows a hard pull from TMCC. CK does not show soft pulls.

I have had my Notes account open for about six weeks.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
MishkaWorries
Posts: 1362
Joined: Wed Aug 14, 2019 4:39 pm

Re: Any experience with Toyota Income Driver Notes?

Post by MishkaWorries »

Kookaburra wrote: Sun Apr 04, 2021 4:55 pm
Stinky wrote: Sun Apr 04, 2021 4:50 pm
Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
Not to mine.

Of course, YMMV.
Do you know if it’s considered a soft credit pull or hard pull?
I have free credit monitoring from a hack. I get instant update when my credit is checked. I'm not sure if they report a soft credit check.

I opened my Toyota note account about a month or so ago. Nothing reported to me as a credit check.
We plan. G-d laughs.
Bronco Billy
Posts: 380
Joined: Tue Jan 23, 2018 10:27 pm

Re: Any experience with Toyota Income Driver Notes?

Post by Bronco Billy »

I got a CD coming up and been looking for a place to make a little more interest than CD these days. Looks a little risky to me but the whole market is risky.
done
Posts: 1
Joined: Fri Apr 09, 2021 3:12 am

Re: Any experience with Toyota Income Driver Notes?

Post by done »

Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
I was able to open a note even with a credit freeze at all agencies.
jpmorganfunds
Posts: 296
Joined: Thu Jun 07, 2007 12:56 am

Re: Any experience with Toyota Income Driver Notes?

Post by jpmorganfunds »

done wrote: Fri Apr 09, 2021 3:17 am
Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
I was able to open a note even with a credit freeze at all agencies.
Why would there be a credit check at all? You're lending them money not the other way around. If there's any credit checking it should be on TMCC.
Ryzen
Posts: 142
Joined: Tue Jul 07, 2020 9:00 pm

Re: Any experience with Toyota Income Driver Notes?

Post by Ryzen »

pseudoiterative wrote: Tue Mar 30, 2021 3:08 am
anon_investor wrote: Mon Mar 29, 2021 10:47 pm
SmileyFace wrote: Mon Mar 29, 2021 9:35 am Interesting investment for all those that ask "should I take the 0% (or 0.9%) loan from TMCC" across this forum. If you are about to pay cash for your car - take the TMCC loan then invest the money back into TMCC.
How are they making money?
my naive guess is that perhaps they lose money on the financing but they make money by selling the cars. offering cheap finance can help more people buy new toyotas than would otherwise. perhaps TMCC is run at a loss, or perhaps TMCC is run at a small profit and also receives funding from other bits of toyota that make money by selling cars.

Another angle is that over the last 10 years or so, toyota achieved an annual return on invested capital of something in the range from 1% to 6%. While this is not very large, it is usually better than 1.5% rate being offered to investors for these notes. So perhaps if Toyota accepts outside capital from the market to fund TMCC operations, they free up more of their own capital to use in other more profitable investments.
Financing arms of auto companies are very, very, very, very profitable. The average buyer is not getting 0% or 0.9% financing, and leasing is especially lucrative.
lakpr
Posts: 11612
Joined: Fri Mar 18, 2011 9:59 am

Re: Any experience with Toyota Income Driver Notes?

Post by lakpr »

jpmorganfunds wrote: Fri Apr 09, 2021 8:35 pm
done wrote: Fri Apr 09, 2021 3:17 am
Kookaburra wrote: Sun Apr 04, 2021 4:48 pm Does opening an account result in a hit to one’s credit score?
I was able to open a note even with a credit freeze at all agencies.
Why would there be a credit check at all? You're lending them money not the other way around. If there's any credit checking it should be on TMCC.
All financial institutions are obligated to "Know Your Customer" through the PATRIOT act, TMCC is no exception. In most cases, that process defaults to running a credit check. How does Toyota know that you aren't whitewashing drug money? << rhetorical >>
pseudoiterative
Posts: 575
Joined: Tue Sep 24, 2019 6:11 am
Location: australia

Re: Any experience with Toyota Income Driver Notes?

Post by pseudoiterative »

Ryzen wrote: Sat Apr 10, 2021 7:57 am Financing arms of auto companies are very, very, very, very profitable. The average buyer is not getting 0% or 0.9% financing, and leasing is especially lucrative.
Thank you for the insight Ryzen. I'm curious to learn about how different industries or niches work -- can you suggest any article or report I can read to better understand the economics & business model of the auto financing business?
tbradnc
Posts: 1532
Joined: Wed Apr 02, 2008 8:30 am

Re: Any experience with Toyota Income Driver Notes?

Post by tbradnc »

For those of you putting money here - how many notes do you have in your account?

I've got 1 note and when I transfer money in I add it to the existing note.

I notice that there is an option to create a "new enrollment" which I suspect would create a new note.

Is there an advantage to having multiple notes?
militaryman
Posts: 4
Joined: Thu Apr 21, 2011 6:44 am

Re: Any experience with Toyota Income Driver Notes?

Post by militaryman »

Is anyone having issues logging into their Income Driver Notes account?

Just spinning here! :annoyed
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