Toyota Tacoma Lease Quesiton

Above is the lease deal I received from an area dealer. I am trying to understand how these leases work. If the difference between the capitalized price ($36,898) and the residual i($32,606) is $4,292, with a money factor 0.0026, how does the payment get to $325 for a 36 month term?

Appreciate the help and education!


The money factor is the rent charge that Toyota Financial charges for the lease on a Tacoma. A 0.00260 money factor translates to about a 6.24% APR, the reason the payment is much higher than the difference between the sale price and residual is because a lot of your monthly payment is going to the bank. Toyota doesn’t offer subvented money factors on the Tacoma because they know the depreciation on Tacomas is very low.

You can reduce the money factor by using MSDs (Security Deposit) or by doing a 1-pay lease. You can also use a different bank depending on what region you are in, but each bank has their own residual and money factor

@Rmay53 Reading the Leasing 101 guide would answer all your questions.

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Thank you. Any thoughts on the calculator I posted?