aumate

Is there one? We financed at 2.9% and we're looking at refinancing at Penfed for 1.74% right away but they told us we had to make at least 4 payments before we could? Is that correct?

GoGiantsNJ

There is no pre payment penalty on LFS loans .I just paid off my 2012 RX-350 financed through Lexus Financial Services.

It made no sense to pay all that interest on the loan when one of my accounts was giving me less interest than the loan.

Go for it,and Good Luck.

JRey350hou

No penalty whatsoever. purchased through LFS @ 1.99 -36 months. Refinanced aprox 45 days through my credit union --1.4@24 mos. Had no issues with LFS GETTING DONE. Dealer/finance guy needs to be more truthful. Use LFS to get the additional 1000.00 if that program still going on.

AZJoe

I have been told that if you pay off the loan within 3 months, the sales person does NOT get their commission related to the financing. We did the LFS loan just to get the $1,000 "loyalty" discount. Don't know if true.

aumate

Thanks. That's what I figured also. Because 4 months seems like an odd number. Will refi in a few days.

dotbowels

I did the $1,000 1.9%. Absolutely no penalty to Lexus owner, Dealer, or Salesperson. I talked to Dealer & LFS about it, before I paid off after 1 payment.

kl323

Wow, when did you guys sign up for the loan? You guys are gettin great rates.

I bought the car 2 wks ago, did the LFS and got the $1k discount. My interest rate was 3.76% for 60 months. My credit score was 840+.

aumate

LOL 840+ bragging rights and here I thought I had a high credit score of 820. Haha. But to answer your question on Saturday is when I bought and got 2.9% for 60 months. Will refi in a couple of weeks for 1.74% at Penfed.

kl323

Wow! I wonder if it's a regional or a timing thing when it comes to interest rates.

Do keep me posted about the refinancing process though. This thread has pique my interest in looking for cheaper rates as long as there are no fees or penalties incurred. Never done any refinancing before, so have no idea what it enatails..

markrivers

^ are we referring to FICO scores here? where the maximum is 850 ( Equifax, Experian, Transunion) or
FAKO ( one you get from those credit monitoring sites)
Anyway.. with a minimum FICO score of 740, you can get Tier 1 plus financing with LFS.

kl323

No idea, I'm just saw that score on the credit application from LFS. When I signed, they had a printout of everything, including my "credit score."

Interesting tidbit about this tier 1 thing. I also previously financed a 2010 IS w/ LFS. Just went through the LFS site and see they have some "loyalty" or "repeat financer" discount. Not sure if it is the $1k that I got this past month.

Rxstarfire

I was told 4 payments as well. The reasoning I was given is you have to give time for the rebate to be processed. You can pay it off sooner, but if the rebate hasn't been processed you will lose the rebate or be penalized...or something like that.
Not sure if that is true or not....just what I was told. I thought 4 payments was a strange number as well. I figure I will look into it further when it comes time to make my first payment.

kl323

Which rebate are you referring to? The 1k loyalty discount or something else?

Rxstarfire

All I know is that if I financed 10k through LFS I would get 1k off of the vehicle. It was not specified if it was a loyalty discount or not. This is my first Lexus, although my fiance's family has purchased one. So maybe it was the loyalty discount. I was just happy to get money off!