Why are FJ money factors so insane? - Toyota FJ Cruiser Forum
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post #1 of 19 (permalink) Old 04-03-2014, 02:10 PM Thread Starter
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Why are FJ money factors so insane?

I was considering leasing my FJ instead of buying. When I was quoted a money factor or .003 which is an APR equivalent over 7% it kind of made me mad. The payment on a 36 month lease was $100+ more than a 72 month purchase with 2.5% APR on a bank loan. Seeing that an FJ Cruiser will likely last 200K+ miles, I purchased. Why does Toyota insult the customer's intelligence with such absurd lease offers?
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post #2 of 19 (permalink) Old 04-03-2014, 03:09 PM
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Re: Why are FJ money factors so insane?

That does seem extreme given the FJ's resale value.
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post #3 of 19 (permalink) Old 04-03-2014, 03:17 PM
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Re: Why are FJ money factors so insane?

Higher resale value usually equates to lower lease payment. Also the price of the car effects the payment. A lot Of Time They Will Quote Lease Payment At Sticker price.
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post #4 of 19 (permalink) Old 04-03-2014, 03:19 PM
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Re: Why are FJ money factors so insane?

I haven't seen 1 Fj for lease in so cal, at least in my area.
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post #5 of 19 (permalink) Old 04-03-2014, 03:27 PM
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Re: Why are FJ money factors so insane?

Money factor is more about your credit and residual is all about the projected value at the end of the lease. The higher the expected resale the higher the residual. On vehicles that Toyota wants to move quickly or in large numbers they make the residual artificially high and subvent the money factor to make a low payment. ymmv
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post #6 of 19 (permalink) Old 04-03-2014, 03:34 PM Thread Starter
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Re: Why are FJ money factors so insane?

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Tonka Cruiser previously said: View Post
Money factor is more about your credit and residual is all about the projected value at the end of the lease. The higher the expected resale the higher the residual. On vehicles that Toyota wants to move quickly or in large numbers they make the residual artificially high and subvent the money factor to make a low payment. ymmv
They wouldn't subvent the FJ money factor. Top tier credit will get you the .003 money factor. The capitalized cost was the TrueCar price ($32,300). The residual was $21K on a 36 month lease. Obviously, I said "pass".

I can see me owning this vehicle for 6 years anyway. It was also better to purchase before moving out of New Hampshire where there is no sales tax.

Last edited by OldManFJ; 04-03-2014 at 03:39 PM.
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post #7 of 19 (permalink) Old 04-03-2014, 03:37 PM
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Re: Why are FJ money factors so insane?

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Higher resale value usually equates to lower lease payment.
Exactly my point. This is the reasoning why luxury auto have such low lease rates(ie Lexus).
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post #8 of 19 (permalink) Old 04-03-2014, 03:39 PM
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Re: Why are FJ money factors so insane?

You probably had a MF of .002 and they marked it up .001 or roughly 2.4%. That is the Toyota Financial limit.
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post #9 of 19 (permalink) Old 04-03-2014, 03:46 PM
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Re: Why are FJ money factors so insane?

A money factor of .003 seems to be pretty standard but the residual value determination by the finance department is probably way too much considering the FJs resale value.
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post #10 of 19 (permalink) Old 04-03-2014, 07:58 PM
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Re: Why are FJ money factors so insane?

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dexterdog previously said: View Post
A money factor of .003 seems to be pretty standard but the residual value determination by the finance department is probably way too much considering the FJs resale value.
actually the residual value is set by the manufacturer not the dealer. if you look at a toyota invoice at the very bottom of the second page there are numbers in kind of a grid, those are the residuals.
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