AGREEMENT/FINANCE CONTRACT

A finance plan set up between Lexus Financial Services and you. This will set out the level of monthly repayments; the amount of deposit paid; the duration of the agreement and the terms and conditions, including in certain circumstances, the appropriate condition of the car when it is returned.

APR

APR stands for Annual Percentage Rate of Charge. It is intended to help you make a like-for-like comparison between finance offers, and takes into account the amount borrowed, the length of the loan, the total cost of repayments and setting up fees.

MONTHLY PAYMENTS

Any amount of finance plus the charges is divided into monthly payments over the term of the agreement, normally payable by Direct Debit. These payments can be tailored to include much more than just the outstanding finance - such as the cost of accessories, Payment Protector, Road Fund Licence and vehicle registration.

TERM

The length of an agreement with Lexus Financial Services which, depending on your choice, can be between 12 and 60 months.                                                                                

ANNUAL MILEAGE

For our Lexus Contract Purchase and Lexus Contract Hire finance plans, the anticipated mileage over the finance period must be agreed in advance. The mileage will affect the expected future value of the car at the end of the agreement.Any excess mileage over and above the agreed level at the end of the finance contract will incur an excess charge payable at a pence per mile rate.

FINAL PAYMENT

This is a sum that can be set as an amount outstanding on certain finance agreements, which is larger than the rest of the monthly payments made throughout the agreement. This large final payment can help reduce the value of the monthly repayments and is available through our Lexus Lease Purchase and Lexus Contract Purchase products, with an additional benefit of an LFS guarantee on the Lexus Contract Purchase product, which also attaches additional options at the end of the agreement.

GMFV

This is only available on our Lexus Contract Purchase plan. The Guaranteed Minimum Future Value protects you from any unexpected fall in used car values. If you pay the final payment on your agreement plus the Option to Purchase Fee ownership of the car transfers from us to you. If for any reason you do not want to pay the final payment to keep the car, providing it is in good condition and has not exceeded the agreed mileage, then the car can be returned to us with nothing further to pay.

SETTLEMENT AMOUNT

This is an amount that must be paid if you wish to settle a finance agreement before the end of its term. The sum takes into account the amount still owed, less a rebate of interest charges that would normally have been paid over the remainder of the agreement.