Lexus Finance

[gs300sport]

Hi Guys

I am thinking of buying a new Lexus.. brand new in fact. However, I was thinking of the Lexus Finance.

As many members here have probably used lexus finance before I was wondering if this is a good thing to do or not.

Using Lexus finance calculator i managed to get some figures. if I stick 5K deposit on a IS220d (basic model) for a 2 year term it works out at £302 a month.. this is affordable.

Question is

1. the original 5k deposit.. i presume that is lost after the 2 year term?

2. when the 2 year term ends and i decide to get a another new lexus and do an exchange will i have to place a deposit again?

does anyone have any other good ideas on financing a new Lexus?

many thanks!

[Kazi]

Whats the APR? Easiest way of knowing it its any good.

[g4crx]

Depending on the interest and depreciation and also the trade in value they offer after 2 year.

If the interest was 0% for example your initial deposit of £5000 + (302x24) [24 monthly payments of £302], you would have paid a total of £12,248 off the car.

You could use the value after interest and depreciation towards a deposit on a trade in.

[gs300sport]

lexus are asking 10%

[g4crx]

lexus are asking 10%

WTF!! If that's the APR they are offering then I would shop around, unless you have adverse credit or have no history of credit.

High street banks are offering 6.9% all day long, some even cheaper. If you can get a better rate from a bank on a personal loan then I would go with that and try get a better deal on the car. You would expect a loan secured on the car, they could offer a better rate than a high street bank, which is unsecured.

[Kazi]

lexus are asking 10%

Think my words would be 'Jog on'

The only way it can work out better if you take their finance is if they knock a considerable amount off the cost of the car you are purchasing.

Otherwise, you need to be thinking about 5.9% and 6.9% aprs.....

Good luck with the purcahse :)

[Damer]

I think I am on sub 7% rate.

Stuck with Lexus Finance for al 3 of my cars, partly as they had faith in me when I got my first. (OK I has CCJ from when I was a student, now cleared and I now earn substantially more than then etct ect.....) when at the time I was looking to get my first Lexus the main high street lenders turned me down because of that rather that looking at the bigger picture.

[javadude]

I got 3.93% flat rate (8% APR?) from Lexus. It was the only option for me as I'd just started as a contractor. Everyone else said "we want two years accounts"... "but I've only been self-employed for 1 month".... "we want two years accounts"... "yes but only been self-employed for 1 month"...click

Perhaps the rate depends on which Lexus dealer you buy from. Mine was owned by Inchcape.

[g4crx]

That's my point Lexus should be able to offer you a better deal as they are taking less of a risk, i.e. they have the fallback of getting the car back if you fail to keep up with the payments.

The banks on the other hand are offering you an unsecured loan, if you stop paying/can't pay they have nothing to fall back on.

[Parthiban]

I'd go and speak to your dealer as they often will offer you things that are better than the rough guide that's provided on the website.

Also try not to pay too much attention to APRs as they can be calculated in a multitude of ways which is why they vary so wildly but the actual monthly payments might not.

What's more important is the flat rate (as javadude mentioned) as this is the actual rate of interest you are paying - same way mortgage rates are quoted :)