Damn Lexus Finance

Northern_Si · July 12, 2015

Get believe I've found 2 GS 450h's in budget but have been snookered by Lexus Finance who refuse to offer more than 3.5 year PCP plans .... I want a 4 year one b

Was impressed on a test drive yesterday. 47mpg on the motorway.

SW

rayaans · July 13, 2015

Get believe I've found 2 GS 450h's in budget but have been snookered by Lexus Finance who refuse to offer more than 3.5 year PCP plans .... I want a 4 year one b

Was impressed on a test drive yesterday. 47mpg on the motorway.

SW

Get finance from elsewhere and then buy the car?

Although from a person who buys every car outright - id say - if you need finance, its definitely not in budget (when talking cars of course)

jamesm182 · July 13, 2015

Get believe I've found 2 GS 450h's in budget but have been snookered by Lexus Finance who refuse to offer more than 3.5 year PCP plans .... I want a 4 year one b

Was impressed on a test drive yesterday. 47mpg on the motorway.

SW

Get finance from elsewhere and then buy the car?

Although from a person who buys every car outright - id say - if you need finance, its definitely not in budget (when talking cars of course)

The car industry would collapse if no one used finance. According to this article, last year over 75% of new cars were purchased on finance:

http://www.bbc.co.uk/news/business-30706580

You're lucky if you can, but very few people have £20k - £50k or whatever it may be sat in their bank just to drop on a car, but many can comfortably afford the monthly payments.

Northern_Si · July 13, 2015

Hi,

I have no need to buy a car outright as I get a monthly car allowance from work, hence the reason I'm looking for a PCP in budget. I do wonder how many people purchase a £30k car in cash? I usually get my cars on a 4 year contract but Lexus do a maximum 3.5 year term.

SW

ColinBarber · July 13, 2015

Nobody has the need to purchase a car outright but it is almost always the cheapest way over the longterm.

For your situation I'd look at alternative finance offerings outside of Lexus given that they won't offer you want you need. Even if they did you could probably find something more competitive elsewhere.

rayaans · July 13, 2015

Get believe I've found 2 GS 450h's in budget but have been snookered by Lexus Finance who refuse to offer more than 3.5 year PCP plans .... I want a 4 year one b

Was impressed on a test drive yesterday. 47mpg on the motorway.

SW

Get finance from elsewhere and then buy the car?

Although from a person who buys every car outright - id say - if you need finance, its definitely not in budget (when talking cars of course)

The car industry would collapse if no one used finance. According to this article, last year over 75% of new cars were purchased on finance:

http://www.bbc.co.uk/news/business-30706580

You're lucky if you can, but very few people have £20k - £50k or whatever it may be sat in their bank just to drop on a car, but many can comfortably afford the monthly payments.

Its called saving up lol, doesnt just happen overnight haha.

Probably worth googling some companies online that offer PCP plans for the GS.

stevet · July 13, 2015

Depends on the age of the car. They wont PCP if it takes the car over 5 years old. Something to do with not being able to accurately forecast the final value.

If its new go somewhere else as a four year PCP is quite common.

Dean8788 · July 19, 2015

Sometimes why would you put all your hard earned cash into a car which is a depreciating asset, PCP offers a great solution to keeping the cash in the bank. Some finance companies do longer PCP upto four years but you may find little difference as they may have a higher base rate of interest, of the GFV payment at the end adjusts alot.

ColinBarber · July 19, 2015

Sometimes why would you put all your hard earned cash into a car which is a depreciating asset, PCP offers a great solution to keeping the cash in the bank.

because it costs you less money!

Dean8788 · July 19, 2015

Also there is loads of schemes which offer deposit contribution and low rate where the interest you pay is lower than the finance deposit allowance. Secondly if you change your car on a regular basis why put 100% in where you could just pay 40% and get some equity at the end.

rayaans · July 20, 2015

Also there is loads of schemes which offer deposit contribution and low rate where the interest you pay is lower than the finance deposit allowance. Secondly if you change your car on a regular basis why put 100% in where you could just pay 40% and get some equity at the end.

The best way to buy a car is to take the deposit contribution for finance and then pay the lot off after 14 days. That way you get the contribution (although its still best to read the small print) and only have to pay a small proportion of interest.

The interest isn't exactly low rate. Even if you pay 3% on a £53k GS450h, it'd cost you an extra £1.5k a year or thereabouts as you pay it off. Eventually it works out £5-7k dearer.

If you change your car on a regular basis, the 40% you talk about is depreciation, thats it. You dont own the car. Its worth noting that every stonechip, every wheel scuff and every scratch is taken into account...... at DOUBLE the price it should cost to fix when you hand the car back. Therefore, you end up actually putting about 60% in for 3 years or so.

You talk about putting 100% in. Thats not entirely true. You put 100% in when buying the car, when you sell it you get 50-60% back after 3 years so it costs 40-50% instead of 60%. When you take the £54k into account the 10-20% difference is huge!

Dean8788 · July 21, 2015

I can see your point of view and on a car at that cost then yes, on a cheaper car it could be ok and you could actually save money. Trouble is these days they offer better deposit contributions on finance sometimes and cash customers miss out a bit unfair. Luckily Toyota now I'm not if Lexus comes under this but they are one of the better mainstream brands for holding value.

ColinBarber · July 21, 2015

Trouble is these days they offer better deposit contributions on finance sometimes and cash customers miss out a bit unfair. Luckily Toyota now I'm not if Lexus comes under this but they are one of the better mainstream brands for holding value.

You take out the finance, get the discount and then after a month settle the finance in full having only paid a very small amount of interest.

Any finance package costs you more than purchasing outright, there is an extra middleman making money out of you.

rayaans · July 21, 2015

I can see your point of view and on a car at that cost then yes, on a cheaper car it could be ok and you could actually save money. Trouble is these days they offer better deposit contributions on finance sometimes and cash customers miss out a bit unfair. Luckily Toyota now I'm not if Lexus comes under this but they are one of the better mainstream brands for holding value.

That's why I said before, the cheapest way to own a car is to get the finance contribution and then pay it all off after 14 days.

With the finance contribution, it only works out cheaper if you have 0% finance, otherwise you'd get a £1k discount and get charged £3k interest so then youre worse off by £2k

Silver Arrow · July 27, 2015

The cheapest way will always be to buy outright when interest rates are so low. Invariably you will pay more on a PCP because you pay Interest on the whole outstanding balance - i.e. even the "balloon" or "GFV" that you will never pay back, especially where they claim it's daily rate interest.

We did buy ours outright - but because we funded it through off-set accounts, the amount of interest we paid/lost was half of what Lexus finance wanted. I reckon we have saved about £2k there alone. They wanted an eye watering £8000 deposit which we would never see come back on a PCP.

Additionally, the GFV, at 3 years, was £12500. Its now 3 years old and we have just had it valued on a PEX at between £15500 and £17000 against different german marques. We may have been given more than £12500 by Lexus, but I really don't know how much more. So in total, we could have been anything up to £6500 better off by doing it the way we did it (£4500+£2000).

Oh and I should add that I used Broadspeed to get the best possible discount and made the dealership apply it at purchase. It was £3500 off compared to the measly £1000 being offered by Lexus.

You really do have to have to have your wits about you. Car buying is never going to make you money unless it's a classic car, and you have to minimise the several £000's that you will inevitably lose

Dean8788 · July 28, 2015

Hybrids will hold there value better than normal petrols, if only we know what to buy now and keep to make some money on in the future. Different brand but I see Renault Clio the v6 mid engine car selling at an impressive price and going up not bad at all. Especially when p'ex prices on Renaults are dropping big time due to the massive pre-registered number of cars out there.

dave1 · July 28, 2015

You may find that they won't hold value as much as you think after 4/5 years, look at the prices on these cars and gauge the % depreciation compared to "normal petrols" as you put it.