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Toyota 4Runner Lease Questions

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  • mdxmewmdxmew Posts: 8
    But isn't the money factor based on the current APR rates? If so, Toyota is offering 0%/24 months, 0%/36 months, 0%/48 months, and 1.9%/60 months. If I'm reading that correctly, then I would assume a tier 1 customer could get 0% money factor on a lease, right? If not, what interest rate are they using to calculate the money factor?
  • A money factor of .0024 is essential 5.76%
  • mdxmewmdxmew Posts: 8
    Yes I understand How to calculate the interest rate based on the money factor (.0024) x (2400) = 5.76%. What I really was trying to understand is WHAT interest rate they use in calculating the money factor? For example, when Toyota had the special .00055 money factor how did buyers know about it? Was it based on the financing incentives? Did Toyota advertise .00055 money factor? I'm just confused on where the interest rate comes from used to calculate the money factor.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi fsufan. A Florida State fan in New Jersey huh? You must have gone to school there or be a transplant. I can confirm that the customer cash that Toyota is currently providing on the 2006 4Runner is not compatible with its special lease program. For the month of August, Toyota enhanced this truck's money factor in its New York region from the .00055 that was available in July to .00032 for consumers who qualify for its "Tier 1+" credit tier. Its money factors for consumers who just qualify for its straight "Tier 1" tier are .00010 higher. I really can't estimate what this truck's lease payment should be for you though because Toyota Financial Services uses a different method than most other banks to calculate vehicles' lease payments. It places restrictions upon which options can be residualized and caps on the amount of money that it allows to be residualized for the ones that it does allow. This is different than most other captive finance companies that allow the full residualization of any factory installed options and it makes calculating lease payments on Toyotas difficult. One can't just multiply a vehicle's residual value percentage times its full MSRP like one usually would when calculating a lease payment. Toyota dealers have a computer system that provides them with a dollar value residual for every vehicle that they have in stock.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Congratulations on your new truck, cinci5313. The 4Runner is a nice SUV. Thanks for taking the time to share the details of your deal with everyone. Enjoy!

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Greetings Sara. The two most important numbers to focus on when leasing are vehicles' selling prices and their money factors. The selling prices of leased vehicles are negotiable, just as if you were financing or leasing them. Negotiate as low a selling price as possible on the truck that you are interested in, shopping around if you have to, and then have the dealer that quotes you that price calculate its lease payment using its buy rate lease money factor. I haven't seen Toyota's Gulf States region's lease program for this model yet this month, so I cannot tell you exactly what money factor to look for though. You can add aftermarket options like an entertainment system to a leased vehicle, but you will either have to pay for them entirely at lease signing or have them added to your vehicle's capitalized cost and pay for their full value in your lease payment.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello mary3kids. Toyota Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2006 4Runner Limited 4WD in its New York region with 12,000 miles per year are .00032 and 57% for consumers who qualify for its "Tier 1+" credit tier. Its money factor for "Tier 1" is .00010 higher.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi jamesbbeam. I am not aware of any resource that anyone in the general public can use to query the current lease programs of vehicles. If you have a specific set of vehicles that you are interested in, I should be able to give you an idea of what their current programs are like though. You;re right, vehicles' lease programs do often change on a monthly basis.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Mary. I believe that you are in Toyota's Southeast region. Toyota's lease program is very different in that part of the country than it is in the rest of the U.S. because its vehicles are sold through a distributorship in your area rather than through Toyota. Toyota dealers in your area lease vehicles through SE Toyota Finance rather than Toyota Financial Services. I have not seen SE Toyota's lease program for this truck recently, but I can provide you with information on Toyota's current advertised lease for this truck in your area:

    "2006 4Runner SR5 V6 - Lease Starting at $289 per Month

    $289.00 Payment
    $1,999.00 Due at Signing
    48 mos. Term

    Closed-end lease on all new 2006 4Runner SR5 V6 model number 8642 with select equipment. Adding options increases payment. $2,288 due at signing includes $1,999 down and first month's payment. $26,943 Adjusted Capitalized Cost based on $1,999 down payment. Lessee pays maintenance, excess wear and tear and $0.15 per mile over 12,000 miles per year. Lease-end purchase option $17,643. Monthly lease payments total $13,879. A Disposition Fee of $350 is due at lease-end. Lease offer only available to qualified lessees through Southeast Toyota Finance. Retail sale and delivery must be completed by August 31, 2006. PROGRAM DATES: 08/01/2006 - 08/31/2006"

    You probably would be able to get the aforementioned truck for under $350 a month, zero down before tax, especially given the fact that most manufacturers' advertised lease payments leave a little meat on the bone so to speak in terms of vehicles' selling prices.

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  • fsufanfsufan Posts: 35
    Yeah, I went to school there years ago. Anyway, thanks for the info. I went ahead and leased a 2006 4Runner SR5 4X4 with the option package that includes sunroof, tow package, etc. I came to find out that in NJ for the month of July tier 1+ money factor was .00012. The MSRP was 32,760. For a 36 month 15,000 miles per year lease with no money down, acuisition fee, taxes, etc. rolled into the payment I ended up with $372 a month payment.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Congratulations on your new truck, bigblock66. Thanks for taking the time to share the details of your lease with everyone. You're right, the strange way that Toyota Financial Services calculates vehicles' residual values makes them not quite as attractive as they initially appear. Enjoy your new ride!

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi stsmythe. A base 2006 Toyota 4Runner SR5 2WD has a spread of just under $3,000 between its full MSRP and dealer invoice price. You were quoted a discount of $1,000 on the truck that you are interested in. If you are in an area that has a decent level of competition, I would not be surprised if you were able to beat this price. You may want to stop by the following discussion to see much much money other community members have paid for similar trucks lately: "Toyota 4Runner: Prices Paid & Buying Experience". The money factor that you were quoted looks good.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi jamesbbeam. You can call me John Daniels. I would be happy to give you an idea of what this truck's lease program is like right now. However, Toyota's lease program often varies depending upon which one of its twelve regions one is in. As a result, I need you to tell me what state you are in before I can help you out.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hey stsmythe. The .00055 special lease money factor that Toyota was offering on this truck in July was extended through the end of August in most regions.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi mdxmew. Manufacturers' special lease money factors are completely different than their special financing rates. Sometimes they are better than an automaker's special APR and sometimes they are worse. One can convert a money factor into an approximate money factor equivalent by multiplying it by 2400.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi again mdxmew. Manufacturers do not advertise vehicles' special money factors. Consumers find out about them by asking dealers or by reading forums like this one and sharing information with each other.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're welcome, fsufan. Congratulations on your new truck.

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  • Thanks Car_man!
  • dman090dman090 Posts: 4
    Couple of questions I have for people here. It seems the MF (Tier 1+) in the Chicago area went up to .00142 (3.4%) from last month's .00055 (1.3%). Thats a delta of about $50 per month on the 06 Sport V6 4x4 I'm looking at. Is there any history/rhyme/reason to TFS's lease rates? My hope is that if I wait out the current month (ending Sept 5th), next month will be better with the new model year quickly approaching, but I feel this is like interest rate gambling...
  • suzintnsuzintn Posts: 19
    Does anyone know what this is for August?

    Thanks

    Suz
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