What's a Guaranteed Future Value (GFV)?
It's the minimum value of your new Toyota at the end of your finance contract, as determined by Toyota Finance. If you decide to return your car to Toyota at the end of your term, Toyota Finance will pay you the GFV[T14], which will be put against the final payment.
Who decides the GFV, and how is it worked out?
Toyota Finance analysts set the GFV[T14], based on what they estimate vehicles will be worth in the future. This is done through sales results of similar vehicles, new model data and economic factors, with your loan term and agreed contract kilometre usage factored in.
Does the GFV equal the expected market value?
The GFV[T14] is the minimum value that Toyota Finance believes your vehicle will be worth at the end of your contract term. This is subject to the vehicle being returned in a condition that meets Fair Wear and Tear guidelines, and not having travelled more kilometres than the agreed contract usage. With this in mind, the GFV[T14] may be more or less than the actual value of the vehicle.
Do I have to keep the car in good condition?
Yes, if you want to take advantage of Toyota Finance's offer to buy the vehicle from you for the GFV[T14]. You will be given a Fair Wear and Tear Guide before you enter into your contract.
If there is a lot of damage can I return it and claim the GFV?
If your vehicle doesn't meet Fair Wear and Tear guidelines, Toyota Finance will give you the opportunity to have the vehicle repaired. Otherwise, Toyota Finance can organise the repairs and deduct the cost from your GFV[T14]. This adjusted GFV[T14] will then be the price that Toyota Finance will offer you if you return the car at the end of your term. Of course, if you keep the vehicle, the condition doesn't matter. And if you trade it in or sell it privately, the condition will obviously impact your sale price.
Can I trade my car?
Yes. You can trade your car at any time for a new vehicle, however you will need to pay the remaining balance of your account and forgo the GFV[T14].
Can I keep my car?
Yes. You simply pay out your finance contract at the end of the term. Toyota Finance may offer you the chance to extend, vary or refinance the final payment. If you choose this option, the GFV[T14] will no longer apply.
Can I sell my car privately?
Yes. Simply pay out the remaining balance of your account. If you do this, the GFV[T14] will no longer apply.
What if I drive extra kilometres?
If you travel more than your agreed kilometre usage, an excess usage adjustment will apply. This will be deducted from your GFV[T14], which then becomes your adjusted GFV[T14].
Is this a lease?
No. If you enter into a Toyota Access Consumer Loan Contract or Toyota Access Business Vehicle Loan, you own the vehicle, with Toyota Finance taking a security interest over it. However, if you enter into a Toyota Access Term Purchase agreement, Toyota Finance owns the vehicle until your finance contract is paid out. You may then be given the opportunity to purchase the car.
This sounds good, but do you charge more?
Toyota Access[T14] is competitively priced. As the final payment equates to the GFV[T14], the interest is higher than that of a loan with a similar amount and term without a balloon final payment. Of course, the deposit and any prepayment of monthly payments will help reduce charges. We suggest you seek financial advice to ensure this product is right for you.
If I use my car for business, are repayments tax deductible?
Toyota Finance does not provide business or tax advice. We suggest you seek independent advice.
[T14] Guaranteed Future Value is the minimum value of your new Toyota at the end of your finance contract, as determined by Toyota Finance. If you decide to return your car to Toyota at the end of the term of your finance contract, Toyota Finance will pay you the Guaranteed Future Value (subject to Fair Wear and Tear and agreed kilometres requirements being complied with). This amount will be applied to your finance contract to satisfy your final balloon payment obligation.
The information provided is general in nature. You should seek your own financial advice to determine whether Toyota Access is appropriate for your individual circumstances.
Terms and conditions, fees and charges apply. Toyota Access Guaranteed Future Value (GFV) products are available to approved customers of Toyota Finance a division of Toyota Finance Australia Limited ABN 48 002 435 181, Australian Credit Licence 392536.
Toyota Access is available at Sunshine Toyota.