LFS Penalty?
Thread Starter
Driver School Candidate
Joined: Feb 2013
Posts: 18
Likes: 0
From: CA
LFS Penalty?
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?
Pole Position
Joined: Mar 2013
Posts: 249
Likes: 0
From: NJ
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.
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.
Intermediate
Joined: Nov 2009
Posts: 414
Likes: 64
From: TX
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.
Driver
Joined: Jan 2013
Posts: 59
Likes: 0
From: AZ
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.
Last edited by AZJoe; Apr 3, 2013 at 09:17 AM.
Thread Starter
Driver School Candidate
Joined: Feb 2013
Posts: 18
Likes: 0
From: CA
Thanks. That's what I figured also. Because 4 months seems like an odd number. Will refi in a few days.
Intermediate
Joined: Jul 2009
Posts: 310
Likes: 2
From: Tri-state
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+.
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+.
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Thread Starter
Driver School Candidate
Joined: Feb 2013
Posts: 18
Likes: 0
From: CA
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.
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Intermediate
Joined: Jul 2009
Posts: 310
Likes: 2
From: Tri-state
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..
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..
Lexus Test Driver
Joined: Aug 2011
Posts: 1,068
Likes: 11
From: California
^ 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.
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.
Intermediate
Joined: Jul 2009
Posts: 310
Likes: 2
From: Tri-state
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.
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.
Driver School Candidate
Joined: Apr 2013
Posts: 14
Likes: 0
From: Louisiana
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.
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.
Driver School Candidate
Joined: Apr 2013
Posts: 14
Likes: 0
From: Louisiana
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! 
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