Toyota Capital Malaysia, a subsidiary company of Toyota Financial Services Corporation (TFSC), has launched a website detailing three new car financing schemes for prospective Toyota owners. Depending on your preference or financial situation, you can choose from the Toyota EZ Beli plan, Toyota Flexi plan or Toyota Drive, the last being an Islamic leasing plan.

Let’s start with the EZ Beli plan, which will arguably be the most popular choice for car buyers. Basically, it’s like a conventional hire purchase loan, but staggered into three tiers. The loan tenure is fixed at nine years, but monthly instalments for the first three years (36 months) is the lowest.

For example, under the three-tier EZ Beli plan, an entry-level Vios 1.5J (AT) – which costs RM69,400 – can be had from RM588 a month (based on the maximum 90% loan rate). This sum is fixed for the first three years. For Tier Two, which is from year four to six (also 36 months), the instalment goes up to RM888 a month, and in Tier Three (year seven to nine), it’s RM1,188 a month.

At the end of the second tier, customers get the option of trading in the car and upgrading via EZ Beli once more. If you’re not inclined to service the higher instalments in Tier Three, then you can trade in your car for a new model, because the trade-in value of said car can be used to offset the outstanding balance of the loan.

According to Toyota Capital Malaysia, other instalment plans may be closer to RM800 a month for the Vios. What the EZ Beli plan does is lower the entry point for aspiring owners, before the repayments increase in anticipation of the customer’s career progression. Like regular car loans, the maximum loan for EZ Beli is 90% of the car’s retail price, including insurance and road tax.

Of course, you get the option of paying more at any point of ownership, and the additional payment will be considered as advance payment. However, keep in mind that not all Toyota models are available via the EZ Beli plan.

The Flexi Plan, on the other hand, is applicable for all Toyota models on sale today. It’s a plan that lets you adjust monthly payments or tenure when the Base Lending Rate (BLR) changes. For example, if you pay a little extra on months when you can afford it, the compounded effect means you get to settle your loan earlier and save on accrued interest.

Let’s say you’ve decided on the new Corolla Altis, with a loan amount of RM123,100 that you wish to service over nine years. Based on a BLR of 6.75% (this is variable), the fixed monthly repayment is RM1,472. By paying just RM50 more (RM1,522) every month, your loan term is reduced by four months, and the savings on interest is RM1,642. If you pay RM3,000 annually (or RM250 extra each month), the loan duration is shortened by 18 months, and the interest saved is RM6,185.

Another benefit of the Flexi Plan is the choice to switch to conventional, fixed-rate hire purchase financing at any point, for free. Those on the Flexi Plan must remember that a 2% interest rate will be imposed for late payments, which is compounded over the contracted BLR. Also, if at any point the BLR climbs or falls, the agreed spread (monthly repayments) will not change.

Lastly, there’s the Toyota Drive plan. This is essentially an Islamic leasing programme (based on the Sharia banking principles) with zero downpayment (terms apply), and you won’t have to worry about choosing an insurance panel or deal with annual road tax renewal. All of those will be arranged by Toyota Capital Malaysia, plus the renewed road tax will be mailed to your residence for free.

Under this plan, the leasee is covered with Guaranteed Auto Protection (GAP; at no extra charge), which prevents customers from having to pay the difference between the insurance settlement amount (based on the car’s market value) and the outstanding amount to settle in the event of a total loss. If insurance proceeds exceed the settlement amount, customers are entitled to a refund (conditions apply).

Also, Toyota Capital will determine the lease-end value of the vehicle at the point of purchase, so customers won’t be affected by depreciation or fluctuating market prices. At the end of the lease, you get to choose whether to trade in the car for a new Toyota model, return or purchase the existing car (subjected to the guaranteed Lease End Value) at the end of your lease period.

However, at this point, there isn’t a breakdown on available models for lease, nor pricing structure. For more information regarding the three new financing plans, click here to visit Toyota Capital Malaysia’s new website. So, what do you think?