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Car Financing and Leasing
Lexus financial services allow you to benefit from exceptional advantages for the purchase or lease of a Lexus as compared to financing services offered by competitors. At Boulevard Lexus, your Lexus advisor can properly inform you about the ways our financing and leasing plans can help you take full advantage of every kilometre you drive aboard your new Lexus.
Like the engineers at Lexus, we are also always in pursuit of perfection, and our objective is simply to find the solution best adapted to your needs and your driving style, with the aim of maximizing both your savings and your peace of mind.
Financing the purchase of your vehicle is a straightforward process that can be arranged prior to, or at time of purchase. Your Lexus Representative is completely equipped to make all the necessary financing arrangements. Lexus Financial Services offers you the convenience of making your monthly payments automatically through your chequing account by using our direct payment plan feature.
Simple Interest Financing
The Lexus finance plan uses the simple interest method to calculate daily interest charges. This is the fairest of all methods. A payment received one day early would result in an interest credit (cost savings) and a payment received one day late would be subject to an extra day's interest.
Lump Sum Payments
If, at any time, you elect to make a lump sum payment, the simple interest method ensures that you receive full value. When a lump sum payment is received, we will deduct a portion for interest earned from the date the previous payment was made and apply the balance to the principal. Consequently, you will reduce your term and realize a savings in interest cost.
Competitive rates and flexible terms
You will find that our rates are very competitive. No fee or penalty applies. The Lexus finance plan offers flexible terms that are tailored to meet you needs. Depending on the vehicle you choose and your good credit, you may qualify for terms of up to 60 months.
There are two basic types of leases available in the automobile industry - Closed End and Open End. Lexus offers only a Closed End lease. To help you compare, both are discussed below:
Open End Lease
Like all types of leases, the end value of the vehicle is established at the beginning of the lease for payment calculation. At the end of the lease the customer, or lessee, may have the option to purchase the vehicle for either the end value determined at the beginning of the lease or the fair market value determined at the end of the lease term. Alternatively, the customer may choose to simply return the vehicle to the leasing company.
The lessee is encouraged to maintain the vehicle's physical and mechanical condition in order to realize the highest resale value at lease end. Any portion of the sale price falling short of the end value is the lessee's responsibility.
Closed End Lease
Unlike the open-end lease, this option does not require the customer (lessee) to "guarantee" a predetermined end value. Instead, the leasing company assumes the risk of estimating the resale price. The lessee agrees to conditions regarding the vehicle's overall condition and kilometer restrictions. Some closed end lease contracts contain an "option to buy" provision for the lessee.
Lexus offers significant advantages over the many competitive lease programs available today.
Full Disclosure Lease
The Lexus lease contains full disclosure and is written in plain language. All contract details and components for payment calculation are spelled out up front so you know what to expect from start to finish.
No Early Termination Penalty
The Lexus Lease assesses no penalty for early termination, aside from depreciation due to usage. You may choose to return the vehicle under the terms of the lease and assume responsibility only for any deficiency due to depreciation. Alternatively, you may simply purchase the vehicle for the remaining principal balance plus taxes and other related charges. Compare this to some competitive leases that charge additional fees or penalties without giving you the option to conclude your lease by purchasing the vehicle.
No Termination Fee
The Lexus Lease charges no administrative fee at the conclusion of your lease. In addition, your security deposit is 100% refundable provided there is no excessive wear and tear and the vehicles has not exceeded the allotted kilometres. Compare this to many other leases, which carry a lease termination fee.
Option To Purchase
The Lexus Lease is a Closed End lease with an option for you to purchase. The purchase price is based on the predetermined end value plus taxes and other related charges. Should you choose not to exercise this option, your Lexus dealer will handle all the details related to terminating the lease agreement.
End Value Guarantee
The closed end Lexus Lease provides the security of knowing that your vehicle's residual or end value is fully guaranteed by Lexus Financial Services. The responsibility for the vehicle's market value is assumed by Lexus Financial Services (Lexus). The customer is responsible only for the vehicle's overall condition as detailed on the lease agreement (appearance, mechanical condition) and charges for kilometres in excess of the allotted amount (excess kilometre charges).
What is Guaranteed Asset Protection or GAP protection?
GAP protection is automatically included in all Lexus Leases.
If your vehicle is declared a total loss, GAP will cover the difference (the gap), after you pay the deductible, between what you owe on the remainder of your lease and the amount of your insurance settlement. You are only responsible for excess kilometer charges and any pre-existing damage to the vehicle.
The "ENCORE" program was created to reward previous customers of Lexus Financial Services. Qualifying customers may receive a reduction in the annual interest rate and full waiver of the security deposit. To qualify, one must have financed or leased through Lexus Financial Services within the last 24 months with a minimum of 12 months activity. Payments must have been made in accordance with the terms of the agreement and the customer will have to qualify for the lease of a new vehicle.
Pre-paid Lease Plan
The Pre Paid lease allows you to prepay the vehicle cost for a specific period of time without having to invest in the entire vehicle. In addition to all the advantages of the Lexus lease, benefits include a reduction in finance charges and the convenience of no monthly payments. Compared to a cash purchase, the Pre Paid lease enables you to retain a portion of the vehicle price which you can use for other purposes.