Important Finance Question

cheeky · May 4, 2004

Guys,

Have a question - may be in for a nasty surprise so here goes. (Going to have to ring dealership tomorrow anyway.)

I purchased a brand new IS200 SE in March on the Lexus 3 year personal plan - the one with a guaranteed future value and the option to trade in, give back or buy outright at the end of the agreement.

My problem is this: I was going to leave the UK (as in emmigrate on work grounds)in a year or so. I will then have had the Lex for about 15 months total. There is a clause in the termination section which states that should I end the deal early, the car needs to go back (fine...) AND the finance company are still entitled to all the 36 month repayments. That would see me give back a year old lexus still worth quite a bit, and cough up an extra £7000 which leaves me a little confused.

I was rather hoping I'd be able to ring Lexus Finance up in a year or so and just ask them for a settlement figure, whilst selling the car back to the dealership for example.

Sorry this is complicated, but anyone in the know feel free to post! I just hope it's not bad news.

Thanks.

PQuist · May 5, 2004

Hmm.. This is a tricky one but speak to a financial expect and see what they suggest. There is always a way round.

amolkarnik · May 5, 2004

Try and find someone to 'assume' the lease. I have seen adverts on Autotrader where someone takes up the contract on your behalf. I know the finance company will usualyy want to carry out the usual credit checks. Lexus may want to charge for this as well.

Fargo · May 5, 2004

yeh you never know,, lexu finance may end the agreament due to special circumstances..

ricky_is200 · May 5, 2004

You should be able to ask for a settlement figure, the fine print in the contract is probably to cover them in case you just stopped paying. They would want the car back and the remaining payments.

andyhart21 · May 5, 2004

Karen DeSantis at Lexus Sheffield told me that there is a 'getout' clause after 18 months of the 3 years. She said this is the crossover point where the car's value and the outstanding balance are equal, so you can hand the car back and walk away with no penalties. Contact Lexus Financial Services to confirm this though........