Deferred lease payments with Lexus Financial
04-24-20, 07:14 AM
#31
Lexus Fanatic
I fail to see how 2 months of deferred payments is a "great deal". All they are doing is extending the length of the policy. At some point, they will no longer provide deferred payments and I will have to make a choice if I should pay for something I don't use or have them repossess the vehicle, I'm leaning towards the latter.
That being said I'm curious to find out if they will actually follow standard procedures and collect the vehicle. Considering that about 30 million Americans are unemployed most of which are unable to pay for their car note, where would they place all of those vehicles.
That being said I'm curious to find out if they will actually follow standard procedures and collect the vehicle. Considering that about 30 million Americans are unemployed most of which are unable to pay for their car note, where would they place all of those vehicles.
04-24-20, 08:18 AM
#32
Lexus Fanatic
I fail to see how 2 months of deferred payments is a "great deal". All they are doing is extending the length of the policy. At some point, they will no longer provide deferred payments and I will have to make a choice if I should pay for something I don't use or have them repossess the vehicle, I'm leaning towards the latter.
That being said I'm curious to find out if they will actually follow standard procedures and collect the vehicle. Considering that about 30 million Americans are unemployed most of which are unable to pay for their car note, where would they place all of those vehicles.
That being said I'm curious to find out if they will actually follow standard procedures and collect the vehicle. Considering that about 30 million Americans are unemployed most of which are unable to pay for their car note, where would they place all of those vehicles.
Personally, I think giving you a two month pause on your lease payments is indeed a good deal. You deciding you no longer need the car is not their problem, its your problem. Trade it in and take the hit and move on.
It is not a great deal what Lexus is doing for you. They just don’t want you to default. I think the lesson learned is that there pitfalls to leasing...and this is one of them. The right thing to do is to pay off the lease and move on...but the sucky thing about leasing is that you have to pay rent for something you can’t use and it’s something you don’t even own. I don’t know what the consequences of not paying, but you can call Lexus and turn it in. I don’t know what happens at that point.
Its like leasing an apartment and then being in the hospital for 2 months. Do you not have to make your rent payments? Of course you do, but you weren't using the apartment. Doesn't matter.
The consequences of not paying the lease payments are obvious. It will rightly ruin your credit and the car may be repossessed. You will then have a judgement for their financial losses on your record too.
Bottom line is, pay your obligations. In cases like this companies are really trying to help people and this is an example of that.
04-24-20, 08:28 AM
#33
Lexus Fanatic
What do you expect them to do? You signed a contract, and you're asking them to amend that contract, and they're offering to do this. You can't expect them to just waive those payments, doing that across their whole company would be very detrimental to them financially.
Personally, I think giving you a two month pause on your lease payments is indeed a good deal. You deciding you no longer need the car is not their problem, its your problem. Trade it in and take the hit and move on.
This is not a "pitfall of leasing", its the same thing when you own, the car depreciates for the months you don't use it. In fact, an owned car has depreciated more because of the drop in car values as a whole, whereas with a lease thats not your problem since the residual is set.
Its like leasing an apartment and then being in the hospital for 2 months. Do you not have to make your rent payments? Of course you do, but you weren't using the apartment. Doesn't matter.
The consequences of not paying the lease payments are obvious. It will rightly ruin your credit and the car may be repossessed. You will then have a judgement for their financial losses on your record too.
Bottom line is, pay your obligations. In cases like this companies are really trying to help people and this is an example of that.
Personally, I think giving you a two month pause on your lease payments is indeed a good deal. You deciding you no longer need the car is not their problem, its your problem. Trade it in and take the hit and move on.
This is not a "pitfall of leasing", its the same thing when you own, the car depreciates for the months you don't use it. In fact, an owned car has depreciated more because of the drop in car values as a whole, whereas with a lease thats not your problem since the residual is set.
Its like leasing an apartment and then being in the hospital for 2 months. Do you not have to make your rent payments? Of course you do, but you weren't using the apartment. Doesn't matter.
The consequences of not paying the lease payments are obvious. It will rightly ruin your credit and the car may be repossessed. You will then have a judgement for their financial losses on your record too.
Bottom line is, pay your obligations. In cases like this companies are really trying to help people and this is an example of that.
. If this person were financing, they would be at the minimum be paying into something they own or will eventually own.The depreciation argument of someone not using a paid off car is very poor.
04-24-20, 08:35 AM
#34
Lexus Fanatic
I disagree. It’s a pitfall of leasing. I don’t lease/rent an apartment, I own. No payments, and can do whatever I want. Bottom line, if someone was in the hospital, they don’t have to worry about the two months of payments cuz there are none . If this person were financing, they would be at the minimum be paying into something they own or will eventually own.
The depreciation argument of someone not using and paid off car is very poor.
. If this person were financing, they would be at the minimum be paying into something they own or will eventually own.The depreciation argument of someone not using and paid off car is very poor.
If my Lexus was worth $90,000 new and is worth $30,000 after 4 years, then it depreciated $60,000 in 48 months. So it goes down in value $1,250 a month. If I don't drive it, it still goes down in value $1,250 month. My lease payment is $1,200 a month. Its the same thing.
As for there being no payments on your home, you still pay taxes, utilities, insurance. I'm not arguing about the value of owning a home vs renting a home, real estate goes up in value though. Leasing a depreciating asset like a car works great for me. You like to keep old cars and have an aversion to debt. That works for you.
Last edited by SW17LS; 04-24-20 at 08:39 AM.
04-24-20, 01:18 PM
#35
Lead Lap
I disagree. It’s a pitfall of leasing. I don’t lease/rent an apartment, I own. No payments, and can do whatever I want. Bottom line, if someone was in the hospital, they don’t have to worry about the two months of payments cuz there are none . If this person were financing, they would be at the minimum be paying into something they own or will eventually own.
The depreciation argument of someone not using a paid off car is very poor.
. If this person were financing, they would be at the minimum be paying into something they own or will eventually own.The depreciation argument of someone not using a paid off car is very poor.
04-25-20, 08:37 AM
#36
I was wondering when someone would say something about leasing vs. buying/financing. There is no difference, both are loans with interest and if you don't have money to pay a monthly lease, you probably don't have money to pay a monthly loan payment if you financed it. You can't make a blanket statement that this is a pitfall of leasing. I like leasing and can't wait to get a new car after year two so in my case, owning a car/financing a car is a pitfall because I have to deal with trading it in or selling it outright. Either way, if you can't afford your lease payment you can't afford your loan payment.
04-25-20, 09:19 AM
#37
Unless the vehicle is paid off, the buy argument is not applicable. If your are leasing and your term is not up or if you purchase and the loan is not paid off, you still need to make whole sooner or later. I am no longer using the vehicle is not an excuse. A contract is a contract, whether leasing or buying or a mortgage. Time to pay the piper.
If someone wants a brand new vehicle every two years, leasing makes the most sense. If no payment is your goal, then buy the vehicle and keep it until the wheels fall off. Different strokes for different folks. Do what makes sense in your situation. I am not preaching to anyone, I assume people have common sense and do what’s best for them.
If someone wants a brand new vehicle every two years, leasing makes the most sense. If no payment is your goal, then buy the vehicle and keep it until the wheels fall off. Different strokes for different folks. Do what makes sense in your situation. I am not preaching to anyone, I assume people have common sense and do what’s best for them.
04-25-20, 09:32 AM
#38
Lexus Fanatic
And again, all of these companies are trying their best to provide what relief they can without totally destroying themselves.
04-25-20, 09:49 AM
#39
Lexus Fanatic
I was wondering when someone would say something about leasing vs. buying/financing. There is no difference, both are loans with interest and if you don't have money to pay a monthly lease, you probably don't have money to pay a monthly loan payment if you financed it. You can't make a blanket statement that this is a pitfall of leasing. I like leasing and can't wait to get a new car after year two so in my case, owning a car/financing a car is a pitfall because I have to deal with trading it in or selling it outright. Either way, if you can't afford your lease payment you can't afford your loan payment.
04-25-20, 09:54 AM
#40
Lexus Fanatic
The context of pitfall is that the OP is stuck paying for something he or she does not own during the context of a pandemic. If the OP was financing, he/she would be at the very least be paying into something he will eventually own. Leasing, financing, or buying a car is always a pitfall, because it a money losing game....but I 100% see you point of view and thoughts on the matter.
I haven't "owned a car" in 9 years, and thats just fine with me. So, it doesn't matter to me that I'm paying lease payments for cars I'm not driving right now. Nor would my feelings be any different if I were making finance payment because I would trade the car before the loan was ever paid off anyways.
04-25-20, 09:59 AM
#41
Lexus Fanatic
And? You're assuming his plan was ever to own it outright. Your worldview is that you want to own things like a car. I personally do not have that desire. It doesn't matter to me at all whether I "own" the car or not. People who lease share my view of it, or they shouldn't be leasing in the first place.
I haven't "owned a car" in 9 years, and thats just fine with me. So, it doesn't matter to me that I'm paying lease payments for cars I'm not driving right now. Nor would my feelings be any different if I were making finance payment because I would trade the car before the loan was ever paid off anyways.
I haven't "owned a car" in 9 years, and thats just fine with me. So, it doesn't matter to me that I'm paying lease payments for cars I'm not driving right now. Nor would my feelings be any different if I were making finance payment because I would trade the car before the loan was ever paid off anyways.
04-25-20, 10:00 AM
#42
Lexus Fanatic
The OP seems to be suffering from a little bit of entitlement syndrome.
04-25-20, 10:25 AM
#44
Lexus Fanatic
Meaning he seems to expect that his problems are Lexus Financial's problems. "I don't see much point in paying for a car that I wont be driving", well, he agreed to pay for a car for a set term. Changes in his circumstances are HIS problem.
The two month forbearance is more than LFS has to do, they have to do nothing.
The two month forbearance is more than LFS has to do, they have to do nothing.
04-25-20, 10:28 AM
#45
Lexus Champion
It is not a great deal what Lexus is doing for you. They just don’t want you to default. I think the lesson learned is that there pitfalls to leasing...and this is one of them. The right thing to do is to pay off the lease and move on...but the sucky thing about leasing is that you have to pay rent for something you can’t use and it’s something you don’t even own. I don’t know what the consequences of not paying, but you can call Lexus and turn it in. I don’t know what happens at that point.