- GFV Loan vs. Conventional Loan: A Comprehensive Comparison for the New Alphard
- Simulation Conditions
- Comparison Chart: Conventional Loan vs. GFV Loan (with ¥1M Down Payment)
- Three Key Takeaways from the Comparison
- Refinancing Simulation: Paying Off the GFV over 2 Years
- Total Cost over 7 Years (5-Year GFV Loan + 2-Year Refinancing)
- Key Findings from this Simulation
GFV Loan vs. Conventional Loan: A Comprehensive Comparison for the New Alphard
This simulation compares the purchase of the new Alphard using a conventional loan versus a Guaranteed Future Value (GFV) loan, assuming a ¥1 million down payment. We’ll use more realistic conditions, including all fees, for a more accurate interest calculation.
Simulation Conditions
- Vehicle/Grade: New Alphard Z Grade (Gasoline, 2WD)
- Total Vehicle Price: Approx. ¥6.5M (including vehicle price, fees, and options)
- Down Payment: ¥1M
- Loan Amount: ¥5.5M (¥6.5M – ¥1M)
- Contract Term: 5 years (60 payments)
- Interest Rate: 4.5% (Annual Percentage Rate – APR)
- Bonus Payments: None
- For GFV Loan Only:
- 5-Year GFV Rate: 50%
- Guaranteed Future Value (GFV): ¥3.25M (¥6.5M x 50%)
Comparison Chart: Conventional Loan vs. GFV Loan (with ¥1M Down Payment)
| Item | Conventional Loan | GFV Loan |
| Down Payment | ¥1M | ¥1M |
| Loan Principal | ¥5.5M | ¥5.5M |
| Final Payment (GFV) | None | ¥3.25M |
| Monthly Payment (Approx.) | Approx. ¥102,500 | Approx. ¥47,500 |
| Total Interest over 5 Years | Approx. ¥648,000 | Approx. ¥1,200,000* |
| Total Cost over 5 Years** | Approx. ¥6,148,000 | Approx. ¥6,700,000 |
*The total interest for a GFV loan is higher because interest continues to be charged on the GFV (¥3.25M) for the entire 5 years. **Total Cost excludes the down payment and is the sum of the loan principal and total interest.
Three Key Takeaways from the Comparison
- The Difference in Monthly Payments Is Clear: A GFV loan cuts the monthly payment to less than half of a conventional loan. While a conventional loan would cost over ¥100,000 a month even with a ¥1 million down payment, a GFV loan allows you to drive an Alphard for just ¥47,500 a month, significantly easing the financial burden on your household.
- Total Interest is Nearly Double with a GFV Loan: The low monthly payments come at the cost of higher interest. This is because interest is charged on the GFV (¥3.25M) for the entire 5-year term. This is the main reason a GFV loan’s total cost can be so much higher.
- Ultimately, the Total Cost of a GFV Loan Is Higher: Even with lower monthly payments, if you decide to buy the car at the end of the contract, the total cost of a GFV loan is over ¥500,000 more than a conventional loan. You are essentially paying extra in interest for the convenience of lower monthly payments.
Refinancing Simulation: Paying Off the GFV over 2 Years
Assuming the GFV loan contract ends after 5 years, let’s simulate refinancing the remaining GFV of ¥3.25M over an additional 2 years (24 payments).
- GFV Amount: ¥3.25M
- Refinancing Term: 2 years (24 payments)
- Interest Rate for Refinancing: 4.5% (APR)
- Bonus Payments: None
This is what the payment structure would look like:
| Item | Amount |
| Refinanced Principal | ¥3.25M |
| Monthly Payment (Approx.) | Approx. ¥142,000 |
| Total Interest over 2 Years | Approx. ¥160,000 |
| Total Cost over 2 Years | Approx. ¥3,410,000 |
Total Cost over 7 Years (5-Year GFV Loan + 2-Year Refinancing)
- Down Payment: ¥1M
- Total Payments from 5-Year GFV Loan: Approx. ¥2.85M
- Total Payments from 2-Year Refinancing: Approx. ¥3.41M
Final Total Cost (over 7 years): ¥1,000,000 (Down Payment) + ¥2,850,000 (5-Year Payments) + ¥3,410,000 (2-Year Refinancing) = Approx. ¥7,260,000
Key Findings from this Simulation
- Monthly Payments Skyrocket: While the initial GFV loan payment was a manageable ¥47,500, the monthly payment jumps dramatically to about ¥142,000 for the final 2 years as you are paying off the large GFV amount over a short period.
- The Total Cost Gets Even Higher: A conventional loan is paid off in 5 years, but this GFV + refinancing plan takes 7 years. As a result, the total cost increases even more, making it over ¥1 million more expensive than a conventional loan.
