The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A Melbourne-based legal outfit, Echo Law, has officially initiated legal proceedings against Toyota Finance in response to allegations of excessive interest rates on car loans.
The crux of the issue lies in a practice known as "flex commissions" deemed unfair due to a lack of transparency, potentially impacting a multitude of consumers.
The legal challenge claims that from 2010 to 2018, Toyota Finance Australia and its affiliated dealers engaged in secretive practices allowing dealers to inflate interest rates, thereby earning higher commissions. This scheme, according to the firm’s analysis, resulted in customers paying more than what was necessary for their vehicle purchases, without their knowledge.
A flex commission structure worked on a basic level, wherein the finance company set a base rate, but permitted the dealer to hike that rate at their discretion. Consequently, the higher the interest and the longer the repayment term, the more lucrative the commission for the dealership. Importantly, this mechanism was employed without the customer's informed consent.
The outlawing of flex commissions in 2018 was a step forward in consumer protection. However, the legacy of their use has led to various class actions aimed at recovering undue expenses borne by customers, with Echo Law's decision to sue Toyota as its latest instance.
Joining Echo Law are fellow claimants represented by Maurice Blackburn lawyers, who have taken action against numerous finance institutions including ANZ and Macquarie Leasing, suggesting a widespread need for consumer redress affecting over a million Australians to date.
Car owners who financed their vehicle through Toyota Finance within specified periods and had their loan facilitated by a dealership may qualify for this recourse. Echo Law’s Andrew Paull expressed that the financial repercussions for those subjected to these commissions are substantial, running into the substantial sums.
While registration for the class action is complimentary via Echo Law's portal, the broader sentiment within the industry remains cautious regarding dealership-facilitated loans. Founding expert Julian Finch of Finch Financial Services warned that dealers often bypass stringent lending parameters, which could disadvantage buyers in various forms. These could include a slew of service charges and marketing-related fees that inflate the cost of borrowing directly from dealerships.
In contrast, competitive financial offers from other lenders are spotlighted for their straightforward and cost-effective car loan terms-featuring interest rates as low as 4.99% and devoid of numerous ancillary costs typically levied with such loans.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Australia’s electric vehicle market has moved into a new phase, with June 2026 delivering a standout result led by Tesla and BYD. Industry reporting shows battery electric vehicles reached about 23.4 per cent of new-vehicle sales for the month, while the two biggest EV brands delivered more than 19,000 electric cars between them. For households comparing a petrol replacement with an electric upgrade, this is more than a sales milestone. - read more
Australia’s affordable electric vehicle market is about to gain another serious contender, with Leapmotor confirming local pricing and specifications for the new B05 electric hatchback ahead of its late August showroom arrival. For buyers who have been waiting for more choice below the $40,000 mark, the headline is simple: the B05 will start from $35,990 drive-away. - read more
Australia’s lower-priced electric vehicle segment is about to get another contender, with Leapmotor confirming local pricing and specifications for the B05 electric hatch ahead of its late August arrival. For buyers weighing up an EV loan, the headline is straightforward: the B05 will start from $35,990 driveaway, with a longer-range variant priced from $38,990 driveaway. - read more
Australian homeowners weighing up whether to switch lenders have a fresh reason to revisit the market, with July 2026 refinance offers showing a mix of cashbacks, fee incentives and rewards points aimed at borrowers willing to move their mortgage. The renewed competition is timely, particularly after months of pressure from higher repayments and a cash rate that remains well above the levels many borrowers became used to during the low-rate period. - read more
ASIC’s 24 June 2026 review of car finance has put a sharp spotlight on how asset loans are sold, priced and managed in Australia. While the report focused on motor vehicles rather than personal watercraft, the lessons are highly relevant for anyone considering jetski loans, especially where finance is arranged through a dealer, broker or other third-party distributor. - read more
When purchasing a truck, whether for personal use or business, navigating the financial landscape can be daunting. This is where pre-approval comes into play. But what exactly does pre-approval mean in the context of buying a truck? - read more
Securing finance for any significant purchase can be a challenge, especially when it comes to acquiring a truck for business purposes. Coupled with a less-than-perfect credit score, this task can seem daunting for many Australians. The ripple effects of financial constraints can impede business operations, affecting the lifeline of commercial ventures that rely on transportation. - read more
As a trucking business owner in Australia, finding the right insurance is crucial to the protection of your business. To achieve this, it is important to first understand your specific business needs. Here are some factors to consider: - read more
Small businesses that require regular transportation of goods may find it essential to purchase a truck. However, this acquisition can become a significant investment that requires careful consideration before making a decision. The two options available are buying or leasing a truck. In this article, we will explore the pros and cons of each option to help you make an informed choice. - read more
Embarking on the journey of acquiring a commercial vehicle is a significant decision for any business. Securing a loan with a low-interest rate is not just a matter of luck; it involves meticulous planning and a thorough understanding of the lending landscape. This opening section sets the scene for our deep dive into navigating the commercial vehicle loan process with an eye toward minimizing costs and maximizing value. - read more
Start Here
Get a free truck loan eligibility assessment and compare truck finance and leasing options
without accessing your credit file!!
Knowledgebase
Certificate of Deposit (CD): A savings certificate with a fixed maturity date and specified interest rate, typically higher than a standard savings account.
No comments yet. Be the first to share your thoughts.