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Discussion Starter #1
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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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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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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Discussion Starter #6 (Edited)
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.
 

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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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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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Buy rate for an MF is .00180 for a 720+ credit score. Maybe a 700. Anything in addition to that number they are making money on, with that kind of rate(.003) a few thousand.

It has nothing to do with an FJ, its just the dealer.
 

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Send me a vin and I will crunch you a lease, that way you can take it into the dealer and show them this "amazing deal". I just need a VIN and how much you want as down payment.
 

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Discussion Starter #13 (Edited)
Send me a vin and I will crunch you a lease, that way you can take it into the dealer and show them this "amazing deal". I just need a VIN and how much you want as down payment.
My VIN is:

JTEBU4BF4EK1855**

I purchased for $32,300

I sent you the full VIN via PM.
 

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Discussion Starter #15 (Edited)
:/ i never understood leasing in the first place, arent you basically paying for a car you cannot keep?
There are promotions that make it a good deal. I leased the 2011 Camry my FJ is replacing, since I like to stay with a similar vehicle. A .0001 money factor (a quarter-percent APR equivalent), a TrueCar price capitalized cost and a 62% residual is a great deal on a Camry with a $275 monthly payment for 45,000 over three years with only first payment due at signing.

If you ever sign a bad lease, the elements you can fix are a bad money factor or bad residual. All you need to do is have a bank do a lease buyout. If you jump the shark on the capitalized cost or buy a bunch wasteful extras like insurance products, you're sunk.
 

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to each their own, but I want to own what I drive, do whatever mods I want to make, paint it whatever colour I want, etc, etc ... try that with a lease ...
:thinkerg:
 

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There are promotions that make it a good deal. I leased the 2011 Camry my FJ is replacing, since I like to stay with a similar vehicle. A .0001 money factor (a quarter-percent APR equivalent), a TrueCar price capitalized cost and a 62% residual is a great deal on a Camry with a $275 monthly payment for 45,000 over three years with only first payment due at signing.

If you ever sign a bad lease, the elements you can fix are a bad money factor or bad residual. All you need to do is have a bank do a lease buyout. If you jump the shark on the capitalized cost or buy a bunch wasteful extras like insurance products, you're sunk.
its still hard for me to wrap my head around, after paying monthly for three years.... what do you have to show for it? i mean, you have to give the car back, right? its on the same level as renting, when you rent, youre just paying someone else's mortgage....
 

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Discussion Starter #18 (Edited)
its still hard for me to wrap my head around, after paying monthly for three years.... what do you have to show for it? i mean, you have to give the car back, right? its on the same level as renting, when you rent, youre just paying someone else's mortgage....
Another advantage is that if your car turns out to be a problem, you can walk away. If it turns out to be a fantastic vehicle, you can buy the lease out any time. My 2011 Camry has a contract residual value of $15,000 and a resale value of $11,000. Also, if your job is unstable and think you might need food stamps, you don't own a leased vehicle. I'm glad I leased my Camry after deciding how nice towing capability would be. It enabled me to go with an FJ Cruiser without having to eat $4,000 in negative equity.
 

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its on the same level as renting, when you rent, youre just paying someone else's mortgage....
the big difference is a property is a appreciating asset and a vehicle is a depreciating asset. a lease is generally a good idea if your a business, like a new car every few years, you want a more expensive vehicle than you can afford, or there is a silly cheap promotion.
 
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