If you're planning to purchase a high-end vehicle from the Lexus lineup, Lexus Financial Services can help you by providing financial options that fit with your needs. Learn more about this financial services provider as you compare options.
Lexus Financial Services
Lexus Financial Services offers both traditional financing and leasing contracts for buyers of new and Certified Pre-Owned Lexus models. The loan term is generally between two and five years, and applicants are permitted to have cosigners. If you choose to apply to get preapproved through Lexus Financial Services online, you can only shop at a Lexus dealership, so you'll be limited to what is available at that location, according to information from Lexus Financial's website.
Toyota's Pressroom reports that using Lexus Financial Services comes with a number of benefits for car buyers:
- Special financing options for military members and recent college grads
- Co-applicants are allowed
- The option to quickly apply online for preapproval
- Mobile app allows for easy setup of monthly payments
Drawbacks include:
- Poor rating with the Better Business Bureau
- Limited options for loans
- Fees and annual percentage rate (APR) must be negotiated at the dealership
- Can only be used when purchasing or leasing a vehicle from an authorized Lexus dealership
- No discounts provided to first responders
- Harder to qualify if you don't have a credit score in the good to excellent range
As part of Toyota Motor Credit Corporation, Lexus Financial Services provides auto leasing and financing options through Lexus dealerships located throughout the United States that opt to participate.
Something to be aware of if you are considering using Lexus Financial Services for your financing or leasing agreement is that the provider offers limited options for loans and you're limited to specific authorized dealerships. The dealerships also have limitations, such as which vehicles you can purchase under the available leasing and financing options.
Financing Options
Some of the options for financing a vehicle through Lexus Financial Services include:
- A lease contract for a new or approved pre-owned model (must be certified by Lexus)
- A brand-new Lexus loan
- A loan for a certified Lexus pre-owned vehicle
- A lease buyout for a vehicle financed through Lexus Financial Services
To qualify, you must have a high credit score. According to data from Credit Karma and Finder.com, the weighted average score for an approved applicant was 735 in 2018. This information was presented to investors in February of 2019.
Some financing programs are available to those who qualify, including for repeat Lexus customers, recent and soon-to-be college graduates, and members of the military. College graduates who have completed their degrees within the last two years and students who plan to graduate within a six-month period might qualify for a reward of $1000, plus a lower APR when financing or leasing a new Lexus. To qualify, you must have attended an approved trade school, college, or program.
Military, including retired and active-duty members and their family, can also qualify for a $1000 reward. This can be applied toward an approved Lexus model that will be leased or financed. Repeat Lexus customers are also eligible for exclusive benefits. These benefits are available to those who purchase both new and pre-owned L/Certified by Lexus models. If you want to lease another Lexus vehicle when the lease term for your Lexus model ends, for instance, you could qualify for a waived disposition fee.
Comparing Financial Services Providers
Lexus Financial Services isn't the only option for car buyers, so it's important to compare the different providers to make a decision. If you're trying to determine whether a loan or lease through Lexus Financial Services is the right option, consider these details:
- The typical loan term is 24-72 months, and the longer the term, the more interest you will typically pay.
- If you don't have excellent credit, you might be able to qualify for a loan through Lexus Financial Services by applying with a co-applicant who has a high credit score.
- Monthly payment deferral and loan extension options are available to those who are having trouble making their monthly payments. These options, however, could incur additional fees or finance charges.
- Various plans are available through Lexus Financial Services to protect your investment, such as maintenance plans, wheel and tire protection plans, and service agreements. These options generally come at an added cost.
If you are planning to purchase or lease a new or certified pre-owned model from a Lexus dealership in your area, choosing to go through Lexus Financial Services for your financing might be the best option.
Applying for Financing Through Lexus Financial Services
Follow these steps, outlined by Consumer Affairs, to apply for a financing option through Lexus Financial Services.
- Visit lexusfinancial.com, and click on the button that allows you to apply.
- Input the ZIP code where you live to find local authorized dealerships.
- Select the model you're interested in leasing or purchasing, and indicate whether you're looking to lease or buy.
- Put in your contact information, including your email address and full name, as well as details about your residence, income, education level, and Social Security number. If you plan to apply with another person, provide their information, as well.
- Click the “Next” button, where you'll come to a page that allows you to choose a Lexus dealership in your area. Here, you'll be able to select more details about the loan, such as the term, how much money you can put down, and the value of the vehicle you plan to trade in, if applicable.
- Before submitting, review the company's privacy terms and options. After reviewing, if you feel comfortable with the terms, complete the process by clicking “submit.”
In most cases, Lexus Financial Services can process applications within one to three business days. Upon approval, you will get a certificate that you can use within the following 30 days at an authorized Lexus dealership. You will finalize the details of the financing process at the dealership.
The company's online terms do specify that when receiving an application, it will make an inquiry into the applicant's credit history. However, the terms don't specifically state whether the inquiry is hard or soft, so be aware that it could affect your credit score.
Sources:
https://www.lexusfinancial.com/
https://www.consumeraffairs.com/automotive/lexus-financial-services.html?page=2
https://www.creditkarma.com/auto/i/lexus-financial-services-review/
https://pressroom.toyota.com/tfs-offers-payment-relief-hurricane-matthew/
https://www.finder.com/lexus-financial-services-auto-loans
https://www.caranddriver.com/lexus
