kalel2127

Has anyone had any luck obtaining deferred lease payments with Lexus Financial? Due to this pandemic, I'm now taking care of my elderly mother which has underlying health conditions. That being said, I don't see the point of paying for a vehicle I won't be using anywhere between 3 months to early next year.

Johnhav430

First and foremost, hope that all is ok with your mom. Personally it seems like in the USA we now have all kinds of incidents whereas before we had thought that only older folks or those with underlying conditions are affected (we have clear cases of infants and say a 25 y.o. all American lacrosse player i.e. totally healthy).

My suggestion is to call. I've seen on linkedin posts where people say, This is how it's done! No payments! Then they tag the financial institution. I wonder when reading between the lines since I have accounts at said institution (largest CU in the nation), are you saying they're waving minimum payments, or are you saying they absolved you of your debt? Are you carrying a balance and are they waiving interest, or charging it? Just natural questions in my mind, but my point is people seem to imply you don't want to pay, call the institution. Again I don't think people are asking that the payments are forgiven, I think they are asking them to be delayed. my .02

Good luck mainly with your mom, I don't care about the car (and I mean that tongue in cheek to illustrate how important your mom is v. Toyota financial)

tex2670

I would think you would get further if you can show you have suffered an economic impact, like losing a job, rather than just saying you won't be driving much. None of us are driving much these days.

But you won't get any relief if you don't ask.

JDR76

From the LFS web site:

You're just going to have to call and ask.

https://www.lexusfinancial.com/us/en/covid-19.html

kalel2127

Thanks for the information and best wishes. I have canceled my insurance and updated the status to non-operational with the DMV. I'll call Lexus Financial tomorrow morning hoping they can defer the payments. From what I read online most financial institutions are deferring payments between 3 to 6 months.

JDR76

I'm surprised you could cancel the insurance. The lease terms require you to keep full coverage.

92 SC400

What's the purpose for registering non-op? So you can pause your insurance?

Me too. I wonder if the lender doesn't know, yet, that insurance has been canceled?

At any rate - sorry to hear about your situation. Hope thing rebound for you sooner than later!

wasjr

When they learn of your insurance cancellation I believe they will require you to get coverage on the car naming them as loss payee and as an additional insured.......or they will buy it and charge you. You better ask about that as well.

Re car insurance, several states are instituting a 90 day moratorium on cancellations, including for non payment.

Also, if you have lost your job because of caring for a family member's health issues, I believe you qualify for unemployment under the CARES Act, even if you were self employed and not otherwise generally eligible for unemployment,

Toys4RJill

Do you have no income at this point? I think a 3 mo forgiveness is granted if you have a job loss, but not if want to voluntarily give up your lease.

Johnhav430

I never knew before insurance could be canceled temporarily, I thought it was a big deal, but it's not. Although I never canceled the liability, just comp/collision through an agent. The interesting thing is the agent stated no changes can affect the premium, within 30 days of a renewal. So I said that doesn't make sense, you canceled my coverage, yet I don't get any credit, because it was 30 days within a renewal? He said, yep. I then said, so I go and buy a Lamborghini Veneno, and I get it 29 days before a renewal, you add the car, and won't charge me extra? Yep.

I realized it's true--you buy a new car over a weekend in PA, you drive off with new plates, having never done anything with insurance. That when I lived in NYS was not the case, must have new insurance ID cards with new VIN. The reason it can be done in PA is the notion of temporary use auto--your policy extends to a temporary use auto for up to 30 days.

tex2670

Not sure where you are buying. My PA dealers require my proof of insurance before the purchase.

RNM GS3

This payment deferment crap that politicians have started will further kill the economy already reeling from this virus.

In NYC - almost all tenants are refusing to pay rent bec the Mayor said they could defer!
Well that starts a chain reaction- how is landlord supposed to pay taxes, utilities, mortgage, maintenance insurance etc. Now if those vendors don’t get paid then they will let go of staff....

There should be clear message that ONLY if you lost your job AND you have no savings to meet 6months of expenses - only then can u apply for a deferment.

What government is telling folks to do is dangerous.

mbarron37

Agreed. The owner of those apartments is not receiving rent payments, in turn they can’t pay their mortgage on the property.

Banks will fail if they do not collect payments on loans, interest income on their P&L will dry up and will be unprofitable. That won’t last long.

I don’t know what the future holds, but the economy is in a world of hurt and will take a substantial amount of time to recover.

To put this in perspective, the SBA is offering loans through the Paycheck Protection Program for small businesses with less than 500 employees to fund payroll for up to 8 weeks. These loans can be fully forgiven under certain circumstances, such as not laying off any employees during the period. We are in crazy times and uncharted territory.

Johnhav430

I honestly have always thought for us corporate guys, we'll never be rich, but hopefully we're not underpaid too much (the moment we're overpaid we're gone esp if over 35). Times like these? To see an employer set aside 5 mil. for employees specifically for this virus is somewhat assuring (I don't need it but there are surely colleagues who need help). We're not talking about here's $1200 if you make $75,000 or less. Something more substantial if there is a demonstrated need.

My next door neighbor gets $1500 tax free out of nowhere and keeps her job and full pay, from her employer, and has no ability to work from home it's not the nature of her job. Up in Boston someone like her gets shown the door. Not here in Phila not in New Haven. These are demonstrable efforts by entities with far less resources than the federal govt.

Times like these I'd rather be a corporate guy than a tycoon. As the NY governor said this is the great equalizer.

And I wholeheartedly agree loans cannot make up for lost income, they only stall impending doom.

wasjr

Just because car insurance is required, doesn't mean folks have it. There are generally no consequences for no coverage until after multiple tickets. Although nonstandard auto policies (minimum limits) are generally written for 6 months, the average policy period is probably 2-3 months. Folks will get required insurance to get a vehicle or renew tags, then cancel. Or like now, will cancel whenever they need cash for other things.

Many state insurance departments have instituted a moratorium on cancellations for non payment. So an insured doesn't have to pay, but still has coverage. On the flip side, less miles are being driven so likelihood of claims goes down.

Don't want to stray too far from topic, but re commercial insurance, some states are trying to get the insurance companies to pay under Business Interruption coverage even though a policy specifically excludes interruptions such as we are having. Business Interruption coverage is for claims as a result of physical damage from fire, storm, etc. So states are wanting insurers to cover something they never priced into the premiums, which would then leave insurance companies requiring a bailout. Insurers do have large levels of investments and cash, but these are required by the state insurance departments to provide sufficient funds to pay insured claims.