Wednesday, November 25, 2020

Even After 5 Years, That Toyota Fortuner 2.8 LTD 4x2 Will Still be Worth P 1.122M*


Other carmakers may have more toys, but Toyota is leveraging the power of its brand (and the ethos of quality, durability, and reliability behind it) to sell cars. Case in point is this new offer for would-be new Fortuner and new Hilux owners.

This month, these additions to the Toyota family are available under affiliate Toyota Financial Services’ Balloon Payment Plus scheme.

First introduced with the Vios and then the Corolla Cross, Balloon Payment Plus enables buyers to split their payment with smaller upfront payments—as low as 20 percent. After that, they get to enjoy light monthly payments (up to 60 months), and they pay remaining lumpsum at the end. It also happens to bundle free periodic maintenance service for up to 20,000 kilometers per year for the entire duration of the lease.

As in the case of the Vios and Corolla Cross, the strength of the Toyota brand enables them to guarantee a high resale value—as much as 70 percent after two years or 50 percent after five years. Regardless, it’s always higher than the remaining lumpsum amount to be paid at the end of the loan term. This gives customers the option to either pay off their then five-year old car, or use this guaranteed resale value to trade in and repurchase a brand-new Toyota.

Since this sounds abstract, let’s put things into perspective with two examples: the 2021 Toyota Hilux Conquest 4x2 A/T priced at P 1,445,000, and the Fortuner 2.8 LTD 4x2 priced at P 2,244,000. If applied for 60-month loan term under the Balloon Payment Plus, it means the Hilux and Fortuner will still be worth P 794,750 (55 percent) and P 1,122,000 (50 percent), respectively after five years.

The Balloon Payment Plus is certainly a great option for those who want to buy a brand-new car, but aren’t that liquid; and those who end up replacing cars every five or so years. Either way, it’s only possible because of that strong resale value that Toyota could give.

Check out the full details of the Balloon Payment Plus for the Fortuner and Hilux below:

2 comments:

  1. Silly article.
    Does NOT factor in the Time Value of Money (i.e. Currency devaluation due to inflation nor Carry /Maintenance costs).
    Writer clearly has NO background in Finance or Economics, yet puts out BS guidance / analysis like this.
    Embarassing.

    ReplyDelete
    Replies
    1. This article is meant to highlight Toyota's Balloon Plus payment, it's not meant to analyze its financial implications. I've done some extensive financial modeling in the past--maintenance cost, excise tax, etc., but not for this one. If you seem to understand the time value of money (which you can adjust to skew to your own liking, BTW, then you're not the market for the Balloon Plus Payment. As for maintenance cost, PMS is included in the package. The only out of pocket maintenance would be wear-and-tear items.

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