Hi,
I have lexus rx350 which I purchased from a Lexus dealer in Toronto. The financing was done through the dealer from a Bank. I want to do a finance transfer. What is the procedure? What is the first step I need to do.
Thanks

 

We are talking purchase and not a Lease? Lease would not be that different but here goes.

If you were here in US, the procedure would be below. I expect it will not be much different in Canada.

Once the purchase is financed, the original seller (Lexus dealer in Toronto) is out of the picture.
The current owners are the purchaser (you) and the Lien holder [Note holder --> "a Bank" (not specified in your post)] ... Individual and Institution have the ownership [recorded on the title]

I would say, check the documents that you signed at the time of purchase or contact the institution [payment stub should have the information].

Almost all of the resale the note holder would like to paid off and the new purchaser's financing agency will do the necessary paperwork after the new purchaser qualifies. You will be given the excess amount received or in the unlikely event that you sell for less than what you owe, you will be required to pay the balance off. If there was earnest money paid then that would be deducted from the payout. The new purchaser can come through the current note holder too .. but again (s)he needs to qualify.

All of the above changes ownership on the Title. If you and the new purchaser are OK with your name on the title [within trusted family] then the current note holder does not care who sends the payments.

Salim

 

Possible downside to this might occur if the RX was purchased new. The original Bank would have
assigned an interest rate based on your Credit Rating from the New Car Rate range. When you
approach the 2nd Bank they may consider the car as a Used Car (they are second owner after the
original Bank...) and give you a rate from their U/C range. U/C rate are generally higher than N/C.

Why are you considering this change? If you were taken advantage of by the Lexus store and they
tacked on a usurious upcharge on the cost of money from the bank then by all means get out from
under that burden. Lexus Financial (USA) has limits on how much mark up can be jacked up. If
you had sub-prime credit and obtained the loan through a secondary source, how long has it been
and how much better is your Credit Score than when you bought the car?

 

What do you mean by "finance transfer"?

Are you looking at refinancing the car, or, is this a case of selling a car that still has a lien on it?

 

Yes it possible to transfer your loan to the buyer. They have to do a credit check of the buyer and the ownership along with the loan is transferred.

 

Glad to hear it worked out for you. For your benefit, please make sure you get a note that states YOUR loan has been paid in full. Hopefully the bank/loaning_agency has a new loan number for the the purchaser. Any default/non/late-payments are not reflected back on you.

Salim