LFS Prepayment penalty
#1
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LFS Prepayment penalty
Hi folks,
It's time to get a new car again. While I like my GS350, it's time to have a baby and move on to a bigger vehicle..haha.. I got one of those early lease termination offers from Lexus Finanacial Services. Basically, they will waive the last 6 payments if I lease or buy another vehicle through LFS though any Lexus dealer. I negotiated an awesome price which I will go into full detail just like I did for my GS once it's finalized. Realize that I am in California and the competiton is stiff here. Since I have to go through LFS, they kind of have me on the financing part. I was thinking if the rate they give me is much higher than my Credit Union, I could just immediately refinance the car, which my CU will let me do. Has anybody every heard of a prepayment penalty for a LFS finance contract? Just checking, don't want to mention it to the dealer, just in case they are trying to make extra points on the finance portion to give me a better price on the car, you know what I mean..haha.
Thanks
It's time to get a new car again. While I like my GS350, it's time to have a baby and move on to a bigger vehicle..haha.. I got one of those early lease termination offers from Lexus Finanacial Services. Basically, they will waive the last 6 payments if I lease or buy another vehicle through LFS though any Lexus dealer. I negotiated an awesome price which I will go into full detail just like I did for my GS once it's finalized. Realize that I am in California and the competiton is stiff here. Since I have to go through LFS, they kind of have me on the financing part. I was thinking if the rate they give me is much higher than my Credit Union, I could just immediately refinance the car, which my CU will let me do. Has anybody every heard of a prepayment penalty for a LFS finance contract? Just checking, don't want to mention it to the dealer, just in case they are trying to make extra points on the finance portion to give me a better price on the car, you know what I mean..haha.
Thanks
#4
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I get the feeling that LFS won't match, they have me over the barrel so to speak, because I have to finance through them to get out of the 6 lease payments. So if the dealer makes something on the back end of the loan, I guess I could say upfront that I'm going to refinance immediately and try to have them match but then again, maybe I want them to overcharge me on the finance part and give me a better deal on the car. I use PenFed and refinancing at their 3.99 rate was super easy when I did it on a previous car.
#5
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if its a lease it isn't really a pre-payment fee. if you turn in your vehicle before your lease term is finished, you are responsible for the remaining months left on the lease. Sounds like what they are doing is hoping they can keep your brand loyalty by allowing you to end your lease earlier ONLY if you stay with Lexus, via another lease or a purchase AND to use LFS as the finance institution.
#7
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Thanks, only 4.9% for Tier 1, wow, times have changed when even going through BofA is cheaper. I think I heard there was a 0.5% reduction of the rate for the GX until the end of the month offered by LFS to the dealers if they want to sweeten the deal for someone, but not totally sure about that.
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#8
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Thanks, only 4.9% for Tier 1, wow, times have changed when even going through BofA is cheaper. I think I heard there was a 0.5% reduction of the rate for the GX until the end of the month offered by LFS to the dealers if they want to sweeten the deal for someone, but not totally sure about that.
Sorry that is for CPO....new rates should be slightly lower.
#9
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Thanks,
I'm looking for a 60 month loan so I'm going to assume that 3.9% should be doable but then again, the point of my post was that I did some research and I'm pretty sure I can refinance any loan I get for 3.49 at 60 months.
I'm looking for a 60 month loan so I'm going to assume that 3.9% should be doable but then again, the point of my post was that I did some research and I'm pretty sure I can refinance any loan I get for 3.49 at 60 months.
#10
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Good luck.
#11
I received an early lease termination offer too. Does it apply to financing used vehicles as well? The way I read the offer, it said the offer was good so long you you lease or finance a "new" vehicle through LFS. Not sure if they mean "new" to me vehcile or a "new" vehicle.
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