Lexus Financial In-Depth Review: Can it Offer the Best Value?
Lexus Financial Services (LFS) is the finance brand for Lexus in the United States and a division of Toyota Motor Credit Corporation (TMCC). It was founded in 1980 and currently operates in 49 states as well as in Washinton, DC.Financing options
Lexus can work with buyers who have different needs and varying circumstances.Here are the available options:
Buy
Looking to own your next Lexus? No problem. Lexus Financial offers auto loans on new and L/Certified by Lexus vehicles, so you don’t have to worry about mileage limits or lease-end dates. Terms range from 24 to 72 months.
What is an L/Certified by Lexus vehicle?
A vehicle that undergoes a 161-point inspection, a Vehicle History Report, and includes the L-Certified Limited Warranty and roadside assistance.The warranty extends for two years after the Basic Warranty expires, or two years from the lease or purchase date, and has unlimited mileage.
Preferred Option Plan
The Preferred Option Plan is for auto loans and allows you to put a significant portion of your principal balance onto the end of your contract as a balloon payment.This can be advantageous if you want lower monthly payments. When the balloon payment becomes due, customers must pay it or refinance it into another loan.
Lease
If you prefer to lease a new or Qualified L/Certified vehicle, you can do that, too. Terms range from 24 to 60 months.At the end of your lease, you can turn in your vehicle and buy or lease another Lexus, purchase it, or return it to your Lexus dealership.
Several special lease types are available including:
- Pay lease: Prepay your lease in full at signing in one payment and get a discount.
- Low-mileage lease: Lessees who don’t drive long distances can save by choosing a reduced mileage limit of 7,500, 10,000, or 12,000 miles per year.
- Multiple security deposit lease: Reduce the lease cost by placing up to nine additional security deposits (which will be refunded when your lease ends).
Lexus dealers will be able to provide you with the terms, conditions, restrictions, etc.
Buying vs. leasing, which should you choose?
Insurance
When buying or leasing a vehicle from LFS, you will need insurance.For the full extent of the lease contract, you will need the minimum liability coverage required by your state, and physical damage coverage for the full value of the vehicle. Further, your deductible can’t exceed $1,000.
For a purchase, you’ll need physical damage insurance which covers the full value of your vehicle for the length of the contract. Note, no deductible limits exist.
Learn about the 10 major factors that determine your car insurance premium.
Payment Options
Payment convenience and flexibility is important. Here’s what you should know about LFS payment options.Monthly payments
Several options exist for paying monthly payments.
Lexus Financial pay by phone: Call the customer service team and make a payment from your checking account (available 24/7).
Online: Schedule a single payment or recurring payments from your checking account.
By mail: Send your payment to the Payment Mailing Address.
Pay in the app: Download the mobile application on your smartphone and make the payment in the app from your checking account.
Western Union Quick Collect: Make your payment to Western Union by cash or credit card.
Pay using CheckFreePay payment: Make cash payments at retail locations.
While LFS does not process credit or debit card payments, you can pay by cash or credit card with WUQC and CheckFreePay.
Payment arrangements
In the scenario that you need to postpone payment, LFS offers the following options.Extension
LFS offers extensions (upon approval), in which an auto loan payment is moved to the end of your contract. Contact the customer service team to request one, and they will evaluate your situation.Note, additional finance charges may apply.
Deferral
Deferrals are the same as extensions but for customers with a lease. You can request to defer a lease payment to the end of your contract but may incur additional fees.Payoffs
Finance customers will mail their payoff payment to the following Lexus Financial address:Retail Payoff Lexus Financial Services
P.O. Box 5855
Carol Stream, IL 60197-5855
Customer service will inform lease customers where to mail their payoff payment.
Special programs
LFS offers programs that may be able to help you save on your next loan or lease, including:College Graduate Program: Qualifying college graduates who are presently employed (or soon-to-be) may qualify for rebates, reduced APRs, and competitive lease terms.
Military Reward Program: Qualifying military service members and their families can get $750 off when purchasing or leasing a new Lexus.
Repeat Customers: LFS rewards loyalty by offering repeat customers exclusive benefits.
Offers: LFS has a special offers page where you will find promotions on various vehicles near you.
Ask your local dealer about LFS special programs to find out the details and if you qualify.
Looking to save? Learn how to get the best auto loan rates.
Tools and resources
LFS offers tools and resources to help potential customers decide on their next vehicle such as:Brochures: Learn about LFS products and services through brochures
Dealer Locator: Easily find dealers near you
Buy or lease quiz: Take a quiz to help you figure out if leasing or buying is better for you
Lease-end guide: Learn about the lease-end process
FAQ page: Read answers to frequently asked questions
All of these can help customers find the right solution.
Vehicle protection plans
If you buy a Lexus, you will have the option to protect your vehicle with a selection of plans including:Vehicle Service Agreements: Covers eligible parts and repairs
Tire and Wheel Protection: Covers repairs and replacement of tires and wheels
Guaranteed Auto Protection (GAP): Cover the gap in coverage between your insurance and what you owe in the event of a total loss
Prepaid Maintenance Plans: Pay upfront for future maintenance coverage
Speak with your dealer about the costs and details of these protection plans.
Lexus Financial customer service
LFS offers general customer service support in the Continental U.S. from Monday to Friday, 8 a.m. to 8 p.m. The Lexus Financial phone number is 1-800-874-7050.Additionally, it offers the following support phone lines:
Apply with Lexus Financial
Applying for credit through Lexus Financial Services is quick and easy.Answer a few questions online, and you’ll get credit decision via email. It will, however, impact your credit score.
Visit the website and click “Apply for Credit.”
Enter your zip code
Choose the vehicle model you want.
Select your finance option and enter your name, email, and address information.
Provide your social security number, and details about your education, employment, and income.
Select a participating dealer near you.
Choose a term length and provide your down payment amount.
Review the privacy options and terms, agree and submit the application.
After this step, look out for the credit decision in your email inbox.
Note: Once you submit your application, your information will be encrypted and sent to LFS and the dealer you chose. After the application is processed by LFS, you and the dealer will get a notification.
Upon approval, you will get a pre-approval notice via email which you can take to the dealer you selected. Then, you can choose a vehicle and complete the transaction at the dealership.
Learn how to get pre-approved for an auto loan without hurting your credit
Compare rates and find the best deal
Now you know all the details about Lexus Financial. It’s part of the Lexus brand and works in collaboration with dealers to get you an auto loan or lease contract on Lexus vehicles.Here’s a summary of the pros and cons:
Pros
Online tools and resources to help you find the right solution
Dealers nationwide
Special programs provide savings
Wide selection of payment options
Extension and deferrals are available
Convenient online application
Loyalty rewards
Competitive interest rates and lease terms.
Cons
Reports of poor customer experiences
Application for pre-approval requires a hard credit inquiry
No way to purchase additional miles on a lease
May not offer the best deal
LFS communicates with dealers which reduces your negotiating power
The company has several benefits to offer. However, be sure to carefully consider the drawbacks before making a decision.
You may be able to get a better deal from another lender that fares well in consumer reviews (such as Springboard, for example), so it’s wise to shop around. Compare LFS to a few other options to see if it can truly offer you the best overall value.
By doing so, you can be confident you’re getting the best deal for your specific needs.
Source :https://www.supermoney.com