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Toyota Camry Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for taking the time to share the details off this offer with everyone, tedr3. Detailed posts that contain vehicles' MSRPs, selling prices, and money factors like yours are very helpful for other community members.

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  • sgtslatesgtslate Member Posts: 16
    Car Man,

    Doesn't Toyota have a weird system for residuals? I was reading the residuals are based on MSRP of the base model without options. I know the 4Runner Limited I just priced had a residual of 53%. It is a limited model with 3g's in options but the 57-58% listed on websites is based on the car without any options. So I am assuming the base XLE might have a 3 year residual of 63% but once you add options to your XLE, the residual will drop.
  • hgershmanhgershman Member Posts: 15
    While we're on the subject...I may be looking at the 07 Camry SE V6 for a 36 month lease at 12,000 mi per year. If you know, what would the residual value percentage number be? Thanks.
  • molearymoleary Member Posts: 9
    This past week I spent about two hours on the internet (I used the Edmund's site almost exclusively) trying to purchase a 2007 Camry XLE (4cyl) with Leather and NAV in the Southeast.

    I was looking for a zero in cap cost reduction, a $26K purchase price and a residual value of 63% on a 36 month, 12K mile per year lease.

    The money factor I was using in my calculations was .00265.

    That breaks down like this:

    Cap Cost $26,000
    Residual @ 63% (of MSRP): $17205.30
    Money Factor: .00265
    Payment: $355.87 + Tax

    I kept hearing from the primary dealer that responded to my net inquiry that the 63% residual was not the right percentage. Everything else was ok.

    Since I have NEVER known Car_Man to be wrong - where am I messing up?

    Thanks in advance,

    Michael
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You are absolutely correct, sgtslate. Toyota Financial Services places limits on which options can be residualized and caps on the ones that it does allow. As a result, even though its residual values initially look fairly high they are not actually as good as they initially appear. It's a strange system that no other captive finance companies that I am aware of use.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey hgershman. If you were to lease a 2007 Toyota Camry SE V6 through Toyota Financial Services right now for 36 months with 12,000 miles per year its residual value would be 63%.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Michael. Toyota Financial Services is not currently providing any sort of lease support on the redesigned 2007 Camry, so the .00265 lease money factor that you were quoted is right on the money. The 63% residual value is correct for a 36 month, 12,000 mile per year lease of a base '07 Camry through Toyota Financial Services. The problem is that TFS places restrictions upon which options can be residualized and caps on the ones that it allows. As a result, its residual value percentages are not as good as they initially appear for vehicles that are loaded with options. TFS is the only captive finance company that calculates vehicles' residual values this way. It makes leasing vehicles through it more expensive that it initially would appear.

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  • avalon2000avalon2000 Member Posts: 25
    Can you help determine what I should pay for a lease?

    NYC area
    2007 Camry SE [fully equipped, every option except sat. radio]
    MSRP $31,942 incl. deliv.
    my price $29,088 + 8.375% sales tax
    $0.00 down

    for:
    36 mo./15k
    24 mo./15k
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi avalon2000. Toyota is not currently providing any sort of lease support on the 2007 Camry. As a result, if you were to lease one through Toyota Financial Services, you would have to pay its standard lease money factor. Its buy rate standard money factor varies by region, but in your area I believe that it is currently around .00275 for consumers who qualify for TFS' "Tier 1+" credit tier. This car's 36 month, 15,000 miles per year residual value is currently 50% and its 24 month residual is 56%. Even with all of this information, I really can't give you an accurate estimate of what this car's lease payment should be like right now because of the strange way that TFS calculates vehicles' lease payments. Its residual value percentages are only for vehicles' base MSRPs. It places restrictions upon which options can be residualized and caps on the ones that it allows. Dealers can easily estimate vehicles' lease payments because they have computer systems that tell them the dollar residual value for any unit that they have in stock. Without the benefit of this system it is difficult to estimate what your car's residual value, and in turn its monthly payment should be.

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  • memphistigersmemphistigers Member Posts: 1
    Hi Car_Man, can i get the current lease rates for a camry 4 cyl CE or SE in Memphis, TN for 36 months/15k miles a year?
  • sjmartinsjmartin Member Posts: 1
    I've never leased before sooo I'm in the learning curve.
    Can one lease a used 2006 Camry? How do I find out what the residual value percentage for a used 2006? Will the money factor be the same as a 2007? I am planning on buying this vehicle at the end of the lease so I am assuming a 3 yr lease should be ok, even thou I'll be 1 year out of warranty. Is there something I'm overlooking on a 3 yr lease? or would I get better lease rates on 2 yr.

    Is Toyota Corp the only company that will finance the lease or are there others out there? Will they be less expensive?

    Any other questions that I should have asked?

    thanks for the help :confuse:
  • golakers32golakers32 Member Posts: 2
    Hi Car_man,

    I'm looking for a 36 months/15K lease of a Camry Hybrid. Here is what I was recently offered for a fully loaded with nav/sunroof.

    $30,862 (MSRP)
    .00265
    Residual $16,949
    Drive off - $1,369
    Monthly - $568.00

    The monthly rate seems pretty high. What am I doing wrong? Any advice? Thanks so much!
  • jbolltjbollt Member Posts: 736
    What am I doing wrong? Any advice?

    I'm NOT Car_Man, but, IMHO, you should buy, NOT lease a Camry Hybrid. If you lease, you won't be eligible for the Fed $2600 tax credit...
  • factorcofactorco Member Posts: 3
    I have never leased. I got a quote from John Elway Toyota in Denver for
    2007 Camry SE 4 cyl with leather seats.
    The quote is
    $500 under msrp
    .00295 MF
    58% residual on 36 months 15,000 miles per year
    $400 acquisition fee
    $399 dealer handling fee

    I have no idea if this is a good deal. What should I go back to the dealer with. I am patient, do not need to buy now and want a fair (but not necessarily the best) deal.

    Thanks anyone and all of you for help.
  • kpsnelgrovekpsnelgrove Member Posts: 1
    Hi, I live in the Dallas, TX area and would love some advice on leasing a 2007 Camry LE-V6. The MSRP according to Toyota's website should come to about $26,500. I've been told I qualify for "Tier 2" credit at an APR of approx. 5%. If all this is true, what should I expect for a monthly payment? Also, do you guys have any thoughts on whether it's best to lease through a dealership or a leasing company, such as Autoflex? Thanks so much for any advice you can offer!!
  • joegolfer1joegolfer1 Member Posts: 17
    Can anyone help with the mf and residuals for Camry LE for 2 years at 15k miles per year. Also, do you know what the mileage penalty is for going over?

    Thanks.
  • mjbechmjbech Member Posts: 5
    Question on a Toyota lease... I was in the finance office today working out finances on a 36 month lease. Final XLE V6 price was pretty good as there are not much inventory in Orange County CA. Whittled down the price and came to an agreement with the sales guy. In the finance office I was offered a 60 month lease to save about $15/mo with the stipulation that I can trade, sell, or turn in the car just before 36 months. He said he was saving me money. That he does these kinds of leases all the time. I said what is in this deal for Toyota. He said nothing- just wanted to save us some money. Something sounded fishy. But most of the offers in the finance office are high profit add ons like GAP insurance, a maintenance program, and the alarm.

    My questions... 1) Is the 60 month lease really a good deal? 36 month payment is $489 and the 60 month payment is $474. If I turn the car in at 35 months 29 days I would save about $540 over the 36 months. Are there any catches to this financing scenario?

    2) they want to charge me an additional $279 for the alarm system. If I don't want it they take it out. They won't deal on this. Is the alarm worth the $279 and needed?

    3) The GAP insurance is $680. They amortize this over 60 months. So when I turn in the car just before 36 months they say I will get the 2 year refund of about $272. I am going to check with my insurance company to see if they offer a GAP insurance and/or if I really need it based on my policy.

    4) Maintenance Agreement... $600 add on, so between the bumper to bumber warranty and the maintenance agreement all services would be free. So 5,000, 10,000, 15,000, 20,000, 25,000, 30,000, and 35,000 mile services would be free. The big ones would be at 15,000 and 30,000. The finance guys says oil change/tire rotation every 5k and bigger services of $200 each at 15k and 30k. Any feedback on whether this is a good deal? Or am I just paying upfront for the same costs that would be incurred over regular intervals during the next 35 or so months.

    Any immediate feedback would be greatly appreciated as I need to make these decisions by 2pm tomorrow.

    Thanks in advance-

    Mike
  • jb_turnerjb_turner Member Posts: 702
    A 60 month lease is a 60 month lease... NOT 36 months but 60 months.
  • wvgasguywvgasguy Member Posts: 1,405
    4) Maintenance Agreement... $600 add on, so between the bumper to bumber warranty and the maintenance agreement all services would be free. So 5,000, 10,000, 15,000, 20,000, 25,000, 30,000, and 35,000 mile services would be free. The big ones would be at 15,000 and 30,000. The finance guys says oil change/tire rotation every 5k and bigger services of $200 each at 15k and 30k.

    I don't know a lot about leases other than when it's over you don't own the car and usually they are for 12,000 miles a year. It seems like a 3 year lease would have the car on warranty the whole time. Unless you're going to buy it at the end of the lease I don't know that I'd even maintain it to their schedule unless I was required to show records to the leasing company. The "major" inspections are good for long term ownership but why do it?

    I'd also have a hard time committing for 60 months when the 3 year leas is so close. I've never kept a car that long and it seems like a 60 month lease would be more of a hassle than a straight out purchase with a 60 month loan (unless you really plan on keeping it 60 months).
  • jaxs1jaxs1 Member Posts: 2,697
    From the questions you are asking and what you say the dealer is putting in the deal, you should not be leasing a car from that dealer in a just a few hours.
    Just cancel it, learn more about the process and go to a different dealer next time.
    Otherwise, you are about to sign up for a gigantic mistake and you won't know how bad it is until you try to turn your 60 month leased Camry in at 35 months.
  • mjbechmjbech Member Posts: 5
    I have decided against the prepaid maintenance and the GAP insurance. I may keep the alarm at $279. I will be phoning an aftermarket car stereo/alarm company that has done work on my son's car to ask about this feature/system on the 2007 Camry's.

    These things the dealer is putting into the deal are all options. I have had this type of situation on pretty much every new car I have purchased or leased in the past. I got a zero down zero interest on a 2005 Merc Mountaineer Premier. Got a great price $500 over invoice everything from the sales dept was great. Then when I was sitting at the desk doing the financing papers, the finance guy started selling me on a special clear coat to protect the finish at $1200, extended warranty $600, LoJack, and all sorts of other high profit add ons. The only thing I did get was the extended warranty as I will use this car for many years to come.

    As to the 60 month lease turn the car in at 36 months question.. I am still puzzled at the dealers logic on this. The 36 month payment is $489 and the 60 month payment is $475. He says as long as you turn the car in before the 36 month anniversary no questions asked. Residual would be the same as if I was doing a straight out 36 month lease.

    I am not worried about the options but this lease situation has me puzzled. Just wanted to see if any other folks out there heard of this kind of lease plan.
  • mjbechmjbech Member Posts: 5
    We have no intention of keeping the car more than 36 months. Dealer says no problem turning in the car before the 36 month anniversary.. meaning no hidden fees or penalties. But I am still leery. This would save about $540 in payments over the 36 months.
  • wvgasguywvgasguy Member Posts: 1,405
    I'd read the fine print. It makes no sense.
  • kyfdxkyfdx Moderator Posts: 235,188
    You should be...

    Salespeople are famous for saying that you can trade out of your lease into another car... What they don't tell you is that you'll be many thousands of dollars in the hole... That money will have to be paid upfront, or rolled into another lease..

    There is no free lunch. Unless you see this spelled out in the leasing contract, then it is just so much hyperbole.

    regards,
    kyfdx

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  • mjbechmjbech Member Posts: 5
    KYFDX- The guy says at 36 months, all I will need to pay is any excessive wear and tear and 15¢ per mile if I go over 36k. This is the same outcome as my 2003 Mountaineer Lease. When I turned in that lease, all I owed was $250 because of some scratches in the front right bumber that needed to be sanded out and painted (if they even did it before reselling it). Sill why would Toyota Finance a deal where they would lose $540 over the first 36 months. Your right no free lunch.

    By the way, on the back of the contract they do spell out the Remaining Payments Liability ... turn in any time and pay us the following amounts...

    which among other things states: any remaining Monthly Payments from the date of termination to the end of the lease..

    in another area..

    early termination charge equal to the difference between adjusted lease balance and Fair Market Value.. then there is a formula for calculating Adj Lease Bal.

    I think I will stick to the conventional lease and go with the 36 month lease as originally planned.

    It amazes me how many people will not do the homework and may fall for this scheme. I will bet this whole deal was offered to almost guarantee that I have to roll the car over to a new lease in 36 months because it is upside down by a few thousand $ rather than just walking away from a true 36 month lease.

    Mike
  • mjbechmjbech Member Posts: 5
    For anyone that wants to know.. My insurance company has GAP insurance for an additional $5 per month. Their price is $180 for 36 months versus the policy that is sold by the dealer for $680 for same period.
  • jaxs1jaxs1 Member Posts: 2,697
    Please stop blindly believing was the dealer "says."
    The only thing that matters is what is in the contract. Not verbal promises.
  • joegolfer1joegolfer1 Member Posts: 17
    Car Man can you help me with the mf and residuals for Camry LE for 2 years at 15k miles per year. Also, do you know what the mileage penalty is for going over?

    Thanks.
  • jl100jl100 Member Posts: 7
    Car Man,

    Haven't seen any responses in a while. When do you think Toyota is going to have a special Camry lease? I noticed you can lease a 2007 Honda Accord special edition V6 for $249/mo (you can view on website). That is pretty good. The dealer here in Memphis quoted over $400/mo for a comparable lease for the Camry (V6, alloy wheels, 6CD changer). Clearly as you said the lease factor and residual are not competitive right now probably due to the demand for the new model.
  • christostpchristostp Member Posts: 5
    Car Man,

    I have a few questions and really need your expertise.

    What is the residual value for the 2007 Camry? Is it the same for the LE & XLE? I was told that it was 50% for a 36 month lease with 12K miles and 47% for a 48 month lease with 12K miles. This doesn't quite seem right to me.

    What is the money factor that a Tier 1 credit, repeat TMC customer would get. I keep seeing .00295, shouldn't it be .00195?

    I am trying to pick up a 2007 LE or XLE with leather and nav but I want to make sure that I have the lease terms down.
  • christostpchristostp Member Posts: 5
    Hello Car Man...

    I was wondering if you had anything on these Camry Lease programs for us?
  • leob1leob1 Member Posts: 153
    Someone ran into my leased Camry! My car was parked and is pretty ugly now, with extensive damage to driver's side rear quarter panel area including the door and maybe axle. My insurance company says they will handle it, since the driver had no insurance! Has anyone else been through a similar experience? Any advice would be appreciated on dealing with a lease car in this situation. Not sure where to go right now and am concerned about end of lease charges.

    Thanks
  • ed108ed108 Member Posts: 39
    I was at a Toyota dealer today and was told the residual for a Camry SE is 62% for 24 months and 58% for 36 months. A 4% difference between 24 and 36 months? Something doesn't sound right there.

    By comparison a Honda dealer quoted me a 71% residual for an Accord on a 24 month lease so. 62% on a Camry sounds crazy. Any thoughts?

    This was for 12K a year by the way.
  • jl100jl100 Member Posts: 7
    My Totoya salesman said that Honda always had better leases in general. Not sure why Toyota is waiting to promote better leases on the Camry, probably because the demand is so high as evidenced by the fact that the local dealer can't keep the Camry's in stock. The residual is probably really that different because Toyota Corp is not pushing the lease on the Camry. Hopefully they will soon.
  • christostpchristostp Member Posts: 5
    I just found out that there are actually 2 different Tier 1 lease programs offered by Toyota Finance, Toyota Motor Credit, Lexus Financial.

    1. (Tier1 Special Lease Rate Discount )
    Beacon Score 720+ - Zero Sec. Dep. - FL
    The MF(money factor)= .001940

    2 (Tier1 Encore Special Lease Rate Discount )
    Beacon Score 720+ - Zero Sec. Dep. - FL
    The MF(money factor)= .001840

    FYI...I was told directly by a rep at TMC/LFC (Toyota Motor Credit/Lexus Financial Service) that the Tier 1 Encore program is what a previous or repeat Toyota/Lexus customer with a perfect pay history with them should be paying.

    Does anyone know of any other Tier 1 programs or Encore programs for other Tiers that are offered?

    Does anyone know what are the residual values that are being used for:

    36/mo, 12K/yr lease? or 39/mo, 12K/yr lease?
  • stalnakerstalnaker Member Posts: 72
    Car_Man:

    I am interested in leasing a fully loaded Camry Hybrid (w/Option Combination C). The dealer is charging full MSRP, which is $30,730 (including the $620 destination charge).

    Please give me money factor, residual, and lease payment for 3 years; 45,000 miles. When I calculate this on the Toyota.com web site, it comes to $518/month (assuming I pay the $400 acquisition fee, $500 security deposit, and first payment upfront). I think that sounds a little high.

    Thanks!

    Ernest
  • moolmanmoolman Member Posts: 129
    I'm in the same situation as the person above so hopefully, Car_Man can help both of us out.

    Camry Hybrid fully loaded. MSRP is 30730 just like the guy above. I want to lease the car for 3 years and 15K a year.

    Anybody have any idea what the best residual and money factor should be from Toyota. I qualify for Tier 1 credit.

    Thanks

    Alex
  • somd_driversomd_driver Member Posts: 2
    Christostp;
    The Money Factors you have are better than quotes I am getting my local dealer in the DC area on Camry LE's. I'm hearing 0.00295, which is about 7.1%.

    Car_Man and kyfdx:
    Can you shed some light here? What are the Tier 1 Special lease rate MF's for a Camry LE Automatic in the DC area? I have the residuals from the dealer, on paper, but they simply told me the MF. Thanks!
  • mrummrum Member Posts: 7
    Hi Car Man -

    Do you know of any lease specials on the Toyota Camry SE or LE in Southern California? I am comparing the Camry to the Mercedes C230.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am sorry to hear that someone hit your car, leob1. That's never a fun situation to be in. You actually are lucky that your vehicle is leased though. As long as you have it repaired properly, you won't have to pay any sort of excess wear and tear penalty on it and the bank that you are leasing it through will have to absorb any diminished value that results from it having been involved in an accident instead of you. I have returned a leased vehicle that was hit by someone and repaired properly before, though it was not a lease through Toyota Financial Services, and everything turned out fine. Just make sure that you take your car to a reputable body shop to do the work.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi christostp. The lease program that you mentioned in your post is correct, however it is only for Camrys leased in Toyota's Southeast region. Toyota's Southeast region is an independent distributor that has different incentive and lease programs for vehicles than the rest of the country does. This is very helpful info for someone in the Southeast that wants to lease a Camry right now, but unfortunately it is not indicative of the lease program that is available in the rest of the country right now. I haven't seen Toyota's Southeast region residual values for this car, so I am sorry to say that I cannot help you out there.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Ernest. Unfortunately, Toyota is not currently providing any sort of lease support on the 2007 Camry. As a result, if you want to lease one through Toyota Financial Services, you will have to pay its standard lease money factor. Its standard factors vary by region, but should probably be around .00275 to .00300 right now for consumers who qualify for its top credit tier. I haven't seen this car's residual values lately, but even if I had they really wouldn't be all that useful because of the way that TFS calculates leases on vehicles. Its published residual values are based upon a percentage of vehicles' base MSRP. It places a strict cap upon which options can be residualized and how much of their price can be residualized. TFS provides dealers with actual dollar residual values for every vehicle that they have in inventory that they then use to calculate lease payments. the percentages are very difficult to use to calculate any sort of accurate lease payment.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Alex. Please see my previous post for the information that you're looking for. Thanks and let me know if you have any other questions.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi somd_driver. The money factor that you were quoted sounds about right to me. Despite the fact that Toyota is advertising lease payments on the 2007 Camry right now, it is not providing lease support on it. As a result, consumers who lease one through Toyota Financial Services right now have to use its standard lease money factor. I believe that its standard money factor varies by region, but it is probably around .00275 to .00300 for consumers who qualify for its top credit tier right now. This is in line with the factor that you were quoted.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mrum. Check out my previous couple of posts in the Camry. Basically, Toyota is not currently providing any lease support on it right now.

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  • sammythebull1sammythebull1 Member Posts: 2
    First and only lease, should I consider buying the car from the finacing bank? What should I look at in the lease agreement that would show if it's worth doing versus turning it back to the dealer. The car has lived up to it's excellant reputation mechanically including the uncomfortable seats. Please advice.
  • sdcobrasdcobra Member Posts: 1
    Hello All,

    Does anyone know where I can obtain the "Lease Rates and Residuals" buy sheet from TMCC? The one the dealers have in their notebooks? This is for Socal region.

    Thank you.
    SDCOBRA
  • nd2knownd2know Member Posts: 1
    DOES ANYONE KNOW HOW TO FIND INFO ABOUT 2007 CAMRY XLE RESIDUAL VALUE FOR LEASES (3 YR, ETC)? ARE THERE RELIABLE SOURCES, TO BE ABLE TO KNOW IF THE DEALER/LEASE CO IS QUOTING SOMETHING ACCURATE? THANKS!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nd2know. I can give you an idea of what Toyota Financial Services' residual value is for a base 2007 Camry XLE. The problem is that Toyota Financial Services calculates vehicles' lease payments differently than other banks. It places restrictions upon which options can be residualized and caps on how much can be for each option that is allowed. It is so confusing that TFS actually provides each dealer with an exact dollar residual value for every vehicle that they have in stock rather than having them use the residual value percentages. For what it's worth, TFS' current residual value for a 36 month lease of a base 2007 Camry XLE with 15,000 miles per year is 60%. For the purpose of calculating a lease payment, the residual value of the exact model that you are interested in will be lower than this if it has any options.

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  • onlysurferonlysurfer Member Posts: 96
    Leased TCH with NAV, leather seats, sunroof etc ('fully loaded') for $5000 due at lease inception and $300/month in MA. 12k/month for 36 months. Very happy with the car. Feels like I bought a gizmo instead of an auto. Yet have to figure out how to turn on the heated mirrors but, as usual, haven't read the manual yet (yeah, it's cold and frosty in MA)...

    Cheers!!!
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