Truck Loans Australia :: News

Share this news item!

Action Sought for Toyota's High Finance Costs

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.

Published:Saturday, 24th Feb 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Australian Home Prices Hit Record Highs Following Rate Reduction

11 Feb 2026: Paige Estritori

In March 2025, Australia's housing market experienced a significant milestone, with national home prices reaching a new peak. This surge was largely influenced by the Reserve Bank of Australia's (RBA) decision to cut interest rates in February, which reignited buyer demand across the country. - read more

CommBank Expands Green Loan Options for Sustainable Homes

10 Feb 2026: Paige Estritori

Commonwealth Bank of Australia (CommBank) has strengthened its commitment to environmental sustainability by expanding its Green Home Offer through a renewed partnership with the Clean Energy Finance Corporation (CEFC). This collaboration introduces enhanced financial incentives for homeowners aiming to improve their property's energy efficiency. - read more

ASIC Cracks Down on Unlicensed Financial Influencers

10 Feb 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has intensified its efforts to regulate financial content on social media by issuing warning notices to 18 'finfluencers'-individuals who use social media platforms to discuss financial products and investments. These actions are part of a coordinated international initiative targeting unlicensed promotion of high-risk financial products. - read more

Virgin Australia Launches In-Cabin Flights for Pets

10 Feb 2026: Paige Estritori

Virgin Australia has unveiled its 'Pets in Cabin' service, a pioneering initiative that allows passengers to travel with their pets in the aircraft cabin on select domestic routes. This service caters to Australia's substantial pet-owning population, offering a more comfortable and convenient travel option for both pets and their owners. - read more

Honda Leads Australian Motorcycle Sales with 21,901 Units in 2025

10 Feb 2026: Paige Estritori

Honda Australia has emerged as the leading motorcycle brand in 2025, achieving a remarkable 10% increase in sales over the previous year. The company sold a total of 21,901 motorcycles, solidifying its position at the forefront of the Australian market. - read more

Click for more Finance News

Truck Loans Articles

The Ins and Outs of Commercial Truck Loans: A Buyer's Guide in Australia

Commercial trucks serve as the lifeblood of the Australian economy, providing vital links between industries and markets across the vast landscapes. The importance of these heavy-duty vehicles cannot be overstated, as they are pivotal in ensuring the smooth operation of both urban and rural businesses alike. Engaging in the commercial truck market is a significant investment, and understanding the ins and outs of financing such a purchase is crucial for business success. - read more

The Top Mistakes to Avoid When Applying for a Truck Loan in Australia

Commercial vehicle loans in Australia are a vital component in the Continuum of the transportation and logistics industry. They provide businesses and individuals with the necessary funds to acquire trucks and other heavy vehicles critical for their operations. Understanding the nuances of these loans is imperative for anyone in the market for a commercial vehicle. - read more

Essential Checklist for Commercial Vehicle Loan Approval

In the journey to secure a commercial vehicle loan, preparation is key. Just as a vehicle needs to be in perfect condition to hit the road, your loan application requires meticulous attention to detail to ensure a green light from lenders. This article embarks on the essential journey of understanding the critical checkpoints before applying for a commercial vehicle loan. We navigate through the path of prerequisites that pave the way for a seamless approval process. - read more

How to Choose the Right Lender for Your Commercial Truck Loan

For many Australian businesses, purchasing a commercial vehicle is a significant investment that often requires financial assistance. Understanding the intricacies of truck financing is crucial, as the right loan can affect your company's bottom line and operational efficiency. With a plethora of lenders offering myriad loan products, choosing the most advantageous deal can be daunting. - read more

The Most Important Factors to Consider When Buying a Truck

Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!

Knowledgebase

Bridge Loan:
A short-term loan used until a person or company secures permanent financing or removes an existing obligation.