To finance a Lexus, you can go to a dealership with Lexus Financial Services to secure a loan or you can get a traditional auto loan from a bank or credit union. Though it’s convenient to get a car loan from a dealership, you may get better terms and customer service from a bank or credit union.
From small sedans to full-size SUVs, Lexus is known for making reliable cars with attractive interiors. When you’re looking for a car loan, you’ll want the same reliability from your loan provider.
How to get a Lexus car loan
Whether you’re interested in a CT 200 or an ES 350 F-Sport, getting a car loan for a Lexus is fairly straightforward.
First, check your credit. After that, compare the rates and terms from no fewer than three different lenders. Finally, try and get preapproved for a loan, if you can.
Check your credit
Always check your credit score before you begin to look for an auto loan. Not only will it help determine your loan terms, but it’ll also influence your interest rate. Generally, a credit score over 660 is considered good enough for a car loan.
If you have a credit score lower than 660, you may still be able to get a Lexus car loan if you’re purchasing your vehicle through a dealership. Lexus Financial Services will accept an applicant if they can prove they’re able to make payments with personal references, proof of income, or a co-applicant.
See the table below for the average APR and monthly payments for various Lexus cars based on your credit score:
| Credit score | Average Annual interest rate | Average monthly payment |
|---|---|---|
| Any | 8.36 | $361 |
| Fair | 8.36 | $361 |
| Good | 8.36 | $361 |
| Very good | 8.36 | $361 |
| Excellent | 8.36 | $361 |
Compare lenders
Once you understand what kind of car loan you could qualify for, you need to choose a lender. Car loans are available through a bank, credit union, or dealership, if you are purchasing your vehicle from one that participates in Lexus Financial Services.
You’ll want to compare offers from no fewer than three lenders before you decide which one to take out. Be on the lookout for:
- Short loan terms: 60 months or less
- Low APR: 4.93 percent or lower
- Manageable monthly payments: 10 to 15% of your monthly income is the norm/
While you’re comparing terms and rates, don’t forget about customer service! Excellent approval odds and low monthly payments are nice, but they don’t mean much if the loan provider has poor reviews from other customers or if they are hard to reach.
Get preapproved
If you’re able to get preapproved for your car loan, you’ll be able to negotiate for better terms when you go to sign the loan agreement. You can apply for preapproval online with Lexus Financial Services.
For preapproval, you’ll need to complete a loan application and provide the following information to the lender:
- Social Security number
- Proof of employment
- Driver’s license or photo ID
- Proof of income (paystub, employment contract, etc.)
Key TakeawayCheck your credit rating before getting a Lexus car loan. Next, compare loan terms from various lenders and attempt to get preapproval to negotiate for better terms.
Average loan term for a Lexus car loan
Your choice of the loan term is a crucial step in getting the right auto financing. Currently, the car loan term most often used in the United States is 72 months (six years). Just because it’s the most common, however, doesn’t mean that it’s the best choice for you.
If it’s financially viable for you, aim for a repayment term of 60 months or less. In exchange for higher monthly payments, you’ll pay off your loan sooner and with less interest—this makes the loan more affordable in the end.
Keep in mind, though, that not every lender will offer shorter loan terms.
If you’ve chosen to get your loan through a dealership, Lexus Financial Services has loan terms from 24 to 72 months. As an added benefit for getting a car loan through Lexus, you won’t have prepayment penalties. That means no extra fees for paying off the loan early!
To get a sense of what your monthly payment and interest rate could be depending on your loan terms with any credit score, see the table below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.2 | $697 |
| 36 | 8.61 | $470 |
| 48 | 8.05 | $363 |
| 60 | 7.95 | $300 |
| 72 | 8.27 | $261 |
If you’re approved for a loan and you have fair credit, you’ll likely have slightly higher interest rates and monthly payments, as seen below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 20.61 | $762 |
| 36 | 16.64 | $521 |
| 48 | 15.6 | $410 |
| 60 | 15.44 | $348 |
| 72 | 16.17 | $314 |
With good credit, you’ll be able to secure more favorable interest rates, and your monthly payments will be lower.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.51 | $696 |
| 36 | 8.39 | $468 |
| 48 | 7.91 | $361 |
| 60 | 7.86 | $299 |
| 72 | 8.46 | $261 |
If you have excellent credit, you’ll likely qualify for the lowest interest rates, and your monthly payments will be lower than average.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 5.58 | $660 |
| 36 | 4.11 | $442 |
| 48 | 3.78 | $336 |
| 60 | 3.68 | $273 |
| 72 | 3.59 | $231 |
Finding a Lexus car loan in your state
Interest rates and auto loan payments are heavily influenced by which state the loan is taken out in. Try to find a lender that knows your area’s financial condition and can offer you the lowest APR for your credit score.
See the table below for an idea of how much a Lexus car loan will cost in your state.
| Credit Rating | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| Fair | 16.16 | $412 |
| Good | 8.33 | $360 |
Very Good | 5.08 | $340 |
Excellent | 3.88 | $333 |
Lexus car loans: new vs. used
Car loans are available for both a new or used Lexus, but the terms will differ based on the age of the vehicle. For example, Lexus Financial Services only approves loans for new and Certified Pre-Owned Lexus cars which are five model years old or newer.
You’re better off seeking a car loan through your bank or credit union if you want to finance an older Lexus model. More likely than not, you’ll have a higher APR for your used car, but the smaller loan amount will make the high-interest rate more workable.
If you want to see the effects of a car’s age on monthly payments and APR, check out the table below.
| Car Year | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 2021 | 7.7.54 | $304 |
| 2020 | 7.82 | $307 |
| 2019 | 8.03 | $307 |
| 2018 | 7.96 | $307 |
| 2017 | 8.15 | $308 |
| 2016 | 8.29 | $309 |
| 2015 | 8.48 | $311 |
| 2014 | 8.45 | $379 |
| 2013 | 8.52 | $380 |
| 2012 | 9.43 | $511 |
2011 | 9.43 | $511 |
| 2010 | 9.43 | $511 |
Holden Easterbrook is an insurance writer with a background in English and creative writing. A specialist in car insurance and vehicle ownership, Holden’s mission is to create content that saves car owners time and money on car expenses. Holden has written nearly 200 articles for Jerry on topics ranging from state-specific regulations to vehicle deep dives. Prior to joining Jerry, Holden pursued his MFA in creative writing from Randolph College.
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information. Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
