Dealer says it’s not worth to go through TFS with MSD’s as Credit Union giving Better rate

Bad plan. Get the information you need ahead of time so you are fully prepared before walking back into the dealership.


We’ll have a CU for you to work with in the not too distant future that will crush the TFS payments in TX even with their new specials. @Cody_Carter gets those specials too and TFS still can’t get anywhere close to the CU payments.


I had went in to dealership today to work out some numbers and I also had a trade in with my current lease for which they were giving me 3k in equity (I feel like I can get more from 3rd party like Carvana etc.) and the monthly payment dropped ~$60 from $469 to $409+tax. MF rate came out to be .00155 through the CU. I’m really tempted to reserve it since they keep passive aggressively saying that “it’s not gonna be on the lot for long, someone mAy walk out with it the next day”, told them I’ll think it over.

Good? Bad? Thoughts?

They want to process my credit application ASAP. I don’t want to be rushed so I told them give me some time.

This is what your deal looks like in the Calculator - pretty darn close if not exact - Note: Updated with 39 months

Your MF is .00155 which is an interest rate of 3.72%. So you are paying ~$115 per month + 6% state tax on rent charge. You did note Tier 2 credit so assume that credit level is correct?

High acquisition fee $1,095

Doubtful, but wonder of the CU does MSDs

Never put 4K down on a lease

1 Like

Dealer says the following regarding the Tier 2:


I know my credit is Tier 1 if they were to run it now.

CU doesn’t do MSD’s.

They state that $3k down is Toyota’s standard procedure whether I’m paying up front or have it rolled into payment. I added additional 1k down so that I can try to lower the monthly payment to $440.

I’m also trading in my current lease and dealer is giving me $2,400 equity to put towards the down payment. I will be effectively be paying the remaining $600 + $1000 as down payment helping to lower the monthly payment.

You have a lot more going on here with new information - a trade in being involved. Do you care to clue us in?

You can put 46K down and have a zero monthly payment… It’s a shell game if you want a “lower monthly lease payment” you would be putting 4K of cold hard cash at risk.

3K down is Toyota’s standard procedure - Say what??

More knowledgeable Toyota insiders have posted you likely would have no flexibility in getting out of a lease early or selling to a third party with the Credit Union route. So the note above “pretty easy” should be taken with a micro-grain of salt. Sounds incaccurate and misleading.

Did you do your homework and get the Edmunds Forum RV and MF for your zip code with TFS?

1 Like

I’ve just started the process for my lease this week so I can get more info from edmunds forum.

They keep stating that going through CU is much better as they are giving better rate than TFS. Will find out more about going through TFS.

Here is a cheat code to help with your search. Someone asked with a Michigan zip code - but you will need to provide your exact one so they can double check

36/15 XSE AWD
.00155 MF
Plat - 61%
XSE - 63%
$750 lease cash
Zip: 48176
Add 2% residual for a 36/12

Thank you! I just posted on their and waiting on a response. The MF the dealer is giving me is .00168 and it was reduced to .00155 with the trade in equity and down payment.

Also, not sure why they are giving me a 39 month lease term rather than 36. I’m assuming it helps in reducing the monthly payment.

The CU is better on the residual and lease term 39/12 month at 67% residual is impressive vs. 36/12 months and 65% for TFS (assuming that 65% will be your TFS RV).

So the CU is valuing the SUV residual 2% higher with an addiitonal 3 months/3,000 total mile lease term (39,000 total allotted miles vs. 36,000). The CU would put you outside the 3/36 warranty coverage, but likely a minor risk with a Highlander.

Then you can compare MFs and acqusition cost fees so you can run the calculator yourself and compare. Plus intangible flexibility of getting out of the lease early with TFS vs. CU (if this is a consideration for you). Also believe GAP comes with a TFS lease - may not with your CU.

1 Like

Gap doesn’t not come with CU. I just received a response back from Edmunds forum:

for 39/15 the MF is .00235 and RV is 61%.

Currently waiting on 39/12 as they did not provide MF/RV for this term.

TFS usually has better terms for 36 months vs 39 months. You sound ask for RV/MF for 36/12k.

Besides total cost of the lease, you should compare other terms such as ability to transfer , third party buy out policy, wear & tear charges etc… I am leasing through credit union / Fusion Auto and my third party buyout quote is several thousands higher than what it would be with Chrysler Capital ( Chrysler Capital does not charge “market value” to third parties afaik) . Of course I did not care about third party buyout three years ago and wanted to save $15 / month . Had I leased through Chrysler Capital, ability to sell at the residual value to a third party would come in handy now.

1 Like

Yes 100% you need to check the 36/15 and 36/12 numbers not the 39’s as they will be the optimal term. Which the 36/12 will most likely be the .00155 and 65% plus $750 lease incentive pasted above from the Edmunds page link.

1 Like

Yes 100% on all the things you noted, but since many of the captives have and continue to change the rules of the game on the fly with regard to third party buyouts given the unexpected equity wave. No guarantees what will be in play next month let alone in late 2024 regarding third party buyouts.

1 Like

Just received the mf/rv for 36/12:

You were right

These are the numbers that I came up with on the calculator, not sure if I did it right🤔: