Who else wants a Lexus? Discover your financing options now and get into your dream car.
For many, Lexus is an innovative and luxurious brand that would be an ideal vehicle to own. There’s a range of vehicles to choose from, including hatches, sedans and sport vehicles. The Racing Coupe F costs upwards of $148,000 whereas the Lexus Elegant Sedan is a cheaper alternative at around $71,000.
How can you finance a Lexus?
Lexus is a luxury brand and this is evident from the price of the vehicles. Therefore, some of the options that are listed might not be as relevant as others, but it’s up to you to decide which one best meets your personal financial situation. Some of your financing options include:
- A secured car loan. With this option, the car you’re looking to finance is used as security against the loan. As there’s an asset against the loan, you benefit from lower rates. These rates vary between lenders but are usually between 5-10% p.a.
- Dealership finance. Lexus wants to get as many people into their vehicles as possible, so it's made this possible through a variety of personal finance options that include a consumer fixed-rate loan, novated lease or a Lexus ownership solution which ensures you know the guaranteed future value of your vehicle at the end of the loan.
- Novated lease. A novated lease is an ideal way to finance a business vehicle, as you are able to take advantage of the tax benefits that are associated with it. Less upfront money is required as it’s an agreement between your employer, you and a third party financier.
- Unsecured personal loan. This loan is ideal for those who don’t want to put forward an asset, such as your brand new Lexus. However, you will get higher rates associated with this loan as there’s more of a risk to the lender. Loan terms start from one year and can go as high as seven years.
- Chattel mortgage. This is where a financier loans money to you for the purchase of a vehicle. You take ownership of the vehicle, but the financier retains an interest in it. This is an ideal way to buy a business vehicle. If you need a Lexus for your business, this is an option to consider.
Compare the Lexus loan options below
How much will a Lexus loan cost?
How much a loan for a Lexus will cost you varies on the amount you borrow and the kind of car you’re looking to finance. At the time of writing, a Lexus CT costs $46,537 driveaway whereas as a luxury four-wheel drive will set you back $155,579. Some of the running costs that are associated with owning a vehicle include:
- the cost of fuel;
- the cost of registration and vehicle insurance in case you get into an accident.
Another cost to consider is the total loan costs of your car loan. If you don’t know what they would be, you can use a car loan repayment calculator to figure out the true cost of your car loan against what you borrow.
How do you decide how to finance your Lexus?
There are numerous considerations that can help you decide between financing options, including:
- Interest rates. Whether or not there is a low interest rate on the loan is a deciding factor. However, keep an eye on the comparison rate as this rate is the true cost of the loan over the loan terms offered.
- Fees (upfront and ongoing). Upfront fees, such as application fees, can be a requirement for some loans. Knowing how much you’re required to pay upfront, as well as other fees, such as a monthly fee or a direct debit fee if you fail to make payments, can also be deciding factors when it comes to choosing a financing option.
- Repayment flexibility. Whether or not you’re able to tailor your repayments to your income schedule is another bonus. Some lenders offer weekly, fortnightly or monthly. Some lenders also allow you to make extra repayments without penalty, which could be a bonus for some people.
- Balloon repayments. A balloon repayment is where you agree to pay a one-off lump sum at the end of your loan term. This payment can account for a significant amount of your loan balance.
Frequently asked questions about financing a Lexus
Should I get a new or used Lexus?
This is a personal choice that’s influenced by your financial situation. If you really want a new Lexus and can afford it, go ahead and get one. However, if you’re not that bothered by that new car smell and don’t mind previous owners, you’ll save money on a used Lexus.
Are balloon repayments offered on all loans?
This will vary between lenders, so keep an eye out on what features are offered and look for “balloon repayments” if that’s a feature you’re particularly keen on.
What are some other fees to look out for while researching loans?
Some other fees to keep an eye on include monthly fees, transaction fees, direct debit dishonour fees and a late fee.
Not completely sold on a Lexus? Compare them against their competitors with our car reviews and Finder Score.