Hello, I bought the new Prius Prime on Mar 02 and also received my buyout documents from TFS last week. When I am ready to process the loan at credit union, they told me that I need to have DMV registration ready before they can proceed with the loan. The issue is buyout due date is Apr, 01 if payment is not received, I need to pay additional penalty/interest’ not sure what fees will be charged. Now I am confused. What should I do now? Anyone in CA been through this process? Any tips would be greatly appreciated. Thanks.
Just a guess, but most payoff statements for other types of transactions (car loans, mortgages, etc) are good through a specific date, after which additional finance charges which aren’t included in the payoff amount accrue.
If you pay sooner you get a refund of the finance charges that were unearned. If you pay later, the finance charges continue to accumulate and your payoff would be short.
You probably just need to get a new payoff quote with a date further into the future.
Separately, no matter how long it takes (credit unions are notoriously lethargic and inefficient), make sure you don’t let a lease payment go 30 days late.
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You jumped the gun. You need to wait until the registration and hard plates arrive in the mail to buy it out.
Keep making lease payments until those arrives, then get a new payoff statement and process your CU loan.
But someone mentioned try to pay it off sooner before the second lease payment. Now I am confused.
If you want to send a check for certified funds to TFS to pay this off, you can do that today. If you want to get a loan from somebody for the balance - to save on the finance charges - they won’t underwrite a loan until the title is available to transfer, and the title won’t be available to transfer until the registration is finalized, which you will know when you receive it and your plates in the mail.
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I got the discount $4500 from Toyota. If I wait till next month I have to pay additional rent charge that means I can’t enjoy the whole discount from Toyota. Hmm, hard call for me.
And my money factor is high like 9% APR. Hopefully there’s a grace period allow for Toyota financial to get my check few days late after the buyout date.
Do you want to risk your credit score on that? Your contract funded and you have an account, so it’s due. How much is the rent charge each month that you think it’s worth rolling the dice?
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Thanks for the advice. Maybe I should just pay one more month and do the buyout when I got my registration.
It’d be less stressful paying one more month. TFS would refund overages anyway and you won’t be in a mad rush just to save $50 (or whatever the amount)
CA registration is 3 months before, are you implying you are past the purchase date and didn’t get any registration docs?
No the buyout dateline is Apri, 1 I haven’t not received the registration from DMV.
You should’ve got it back in late Jan.
I just bought the car March, 02.
How can he get registration in Jan when he just bought it in March?
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Exactly. The ink on the temp tags is still wet.
Oh I thought this was a buyout of a 3 yr Lease after 3 years, not a buyout after 30 days.
He could go into DMV or AAA, ask for a copy of his regs, that will cost like $15 I believe.