‘Balloon’ car financing has been available in this region for over 20 years, offering an alternative way to purchase their new vehicle. The idea is that the purchaser can reduce the amount of monthly instalments for most of the repayment term with the final instalment being a larger one (which is what the ‘balloon’ refers to).
For some car-buyers, this type of financing may be suitable as it lowers the commitment at the start when their income may be lower. But, over time, it is assumed that their income level will have risen and it will be easier to pay the larger amount at the end of the loan period.
7-year repayment term
Toyota Capital Malaysia Sdn. Bhd., a subsidiary of Toyota Financial Services Corporation, offers such a financing scheme with its EZ Value Plan that has just been launched. It has a 7-year term for repayment and gives customers a flexible and affordable way to purchase their new Toyota model.
“With the introduction of our EZ Value Plan, we are enhancing the affordability of Toyota car ownership and providing our customers with a range of flexible ownership options,” said Thomas Chai, President of Toyota Capital Malaysia.
“Our objective is to offer a financing option that aligns with the requirements of our customers. EZ Value Plan provides customers with the freedom to enjoy a lower monthly commitment, as compared to a conventional 9-year hire-purchase loan. At the end of the financing term, customers have the flexibility to either settle the loan or trade-in their vehicle for a newer model at any participating dealers,“ Mr. Chai explained.
Repayment Assistance Program
Making a large single payment at the end of the term could become challenging for some due to changed personal circumstances. In such cases, the customer can apply for assistance from the company through its Repayment Assistance Program, which as loan restructuring as a solution.
The current models offred with the EZ Value Plan are the Vios, Yaris, and Corolla Cross. Customers can apply for the EZ Value Plan at all Toyota dealerships nationwide (except Labuan and Langkawi).
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