Toyota 1 pay lease question

I’ve tried to find the answer in the forum by searching but no luck.

How does Toyota 1 pay lease works? Does it reduce money factor by certain amount?

Any help would be appreciated.


I know TFS allows MSDs that can reduce the MF by .00072 (9 MSDs), but haven’t really heard anyone doing one-pay with TFS.

Maybe @Cody_Carter can help answer your question?

Here’s what my book shows for 1Pay

1Pay Feature: Deduct 0.00100 RCF points from the qualified Tier. Dealer rate participation up to a maximum of 0.00040 is
allowed on this program. 1Pay is compatible with standard lease rates that start with 0.00101 RCF or higher.
For 1Pay, the full 0.00100 RCF reduction must be applied.

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Thanks @Cody_Carter, very helpful info.

One more question, do you know if Toyota is refunding prorated amount of one pay if the car is being totaled?

What does that mean? Max dealer markup of .0004?

I’m pretty sure that’s what it means. We don’t mark up mf at my store and 1 pay is pretty rare.

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Never ran across that question before. I’d have to check with finance director

Dealer participation is when the dealer makes income off a marked up rate. TFS allows up to a 1% rate markup that the dealer gets when the lease originates. Before CFPB stepped in, this was capped at a much higher amount. I think they have a 90 day chargeback policy on it as well.

All captives (and Ally/US Bank) allow for rate markup with varying degrees of capping the top end. Each dealer runs their business uniquely so some will discount heavy but mark rates up and often are heavy on the f&i product pushing. Others like Cody’s Toyota store, are more transparent and don’t mark rates up as a business rule.

In most cases I’ve seen, the highest credit tier customers get the biggest markups unless they know how to find the buy rate on Edmunds.