What is Toyota Financial Services (TFS)?

How does TFS relate to Toyota Motor Credit Corporation (TMCC) and Toyota Motor Insurance Services (TMIS)? Toyota Financial Services (TFS) is a service mark of both TMCC and TMIS. TFS is a brand name used to market both finance products offered through TMCC and vehicle and payment protection products offered through TMIS.

1. I'm shopping for a used Toyota and I keep coming across the term "TCUV"? What is it? "TCUV" stands for Toyota Certified Used Vehicle. TCUVs are different from other used vehicles because they have passed a comprehensive 160-point Quality Assurance Inspection, received a Vehicle History Report, and include a 3-month/3,000-mile comprehensive warranty* and a 7-year/100,000-mile Limited Powertrain Warranty and Roadside Assistance Plan*

Glossary
ABC | DEF | GHI | JKL | MNO | PQRS | TUV | WXYZ Acquisition Fee A charge included in most lease transactions that is either paid up front or is included in the gross capitalized cost. Adjusted Capitalized Cost The difference between the gross capitalized cost and the capitalized cost reduction. This amount is factored into the determination of the monthly lease payment. Amount Financed In a finance contract, the agreed-upon sale price of the vehicle, plus any charges for accessories, taxes, title and registration, government fees, optional products (for example, service contracts and vehicle or payment protection products), less any down payment and/or net trade-in allowance. This is the amount that is subject to finance charges. Annual Percentage Rate (APR) In a finance contract, the cost of your credit as a yearly rate. Capitalized Cost Reduction or Cap Cost Reduction In a lease contract, the amount of any net trade-in allowance, rebate, non-cash credit, or cash paid that reduces the gross capitalized cost. Closed-End Lease The lessee is liable for excess mileage and excessive wear and use. This is the only type of lease Toyota Financial Services utilizes. Down Payment (Finance Transactions) The amount of cash or net trade-in allowance applied to reduce the cash sales price of a vehicle. Many creditors require a down payment of 10 to 15 percent of the amount to be financed. However, the required down payment can be less, depending on your credit history, ability to repay and other criteria. A down payment helps lower your monthly payment as well as establish equity in your vehicle. Early Termination When a lease is terminated before the scheduled maturity date, and the vehicle is returned to the lessor, early termination charges may be substantial. Excess Mileage Charge Leases generally contain a limitation on mileage that can result in excess depreciation of the vehicle. A set mileage allowance is disclosed in a TFS lease agreement. If this limit is exceeded, the lessee is charged for each mile driven exceeding the allowable mileage, as disclosed in the lease (e.g., $0.15 per mile). However, if at lease inception, you feel you will be driving more than is set forth in the lease, you can add the anticipated excess mileage (at $.10 per mile) to your lease to be paid as part of your monthly payment. Excessive Wear and Use TFS leases contain specific standards for excessive wear and use. Included are such items as missing parts, scratches, dents, mismatched/bald tires, cracked glass, ripped/torn/burned interior, and inoperable mechanical parts. At the end of the lease, if the lessee does not purchase the vehicle, the lessee must either repair the excessive wear and use or pay the lessor the estimated cost to repair. First Monthly Payment TFS requires that lease payments be made at the beginning of each monthly period. Therefore, the first monthly lease payment is due at the time of lease signing. Gross Capitalized Cost The agreed upon value of the lease vehicle (as negotiated between you and the dealer), plus any items you pay for over the lease term such as taxes, prior credit or lease balance, optional products such as service contracts, or credit insurance. Lease A contract between a lessor and a lessee for a specified time period and a specific payment. The lessee returns the vehicle at the end of the lease and is responsible for certain end-of-lease charges, such as excess mileage, wear and use. The title to the car remains in the name of the lessor as owner unless and until the lessee exercises his/her purchase option. Lessee

The customer who signs a lease with the lessor and pays for use of the vehicle. Lessor The Toyota dealer and, after assignment, the financial institution to which the lease is assigned. The party leasing the vehicle to the lessee, the actual owner of the vehicle and the lease (e.g., leasing company, dealer or financial institution). Low Miles The mileage calculated into a lease payment under TFS Low Mileage Lease Program. The total allowable miles under TFS Low Mileage Lease Program is calculated by dividing the number of months in the term by 12 and multiplying this amount by 12,000. For example, the total allowable miles under a TFS Low Mileage Lease with a 36 month terms is calculated as follows: 36 month term divided by 12 = 3 years; 3 years multiplied by 12,000 is 36,000. A charge is assessed for any mileage driven that exceeds this limit. Manufacturer's Suggested Retail Price (MSRP) The retail price of the vehicle as recommended by the manufacturer. Purchase Option An option in a lease that allows the lessee to purchase the vehicle during or at the end of the lease term for a price disclosed or described in the lease. Refundable Security Deposit An amount collected by the lessor at the beginning of the lease to ensure the lessee's compliance with the terms of the lease. The security deposit is generally refundable at lease end, provided there are no excess mileage, excessive wear or use charges, outstanding parking tickets or other unpaid amounts. In some cases, your security deposit may be applied by us to the amount you owe to purchase the vehicle or other amounts owed on the lease. Residual Value The projected value of the vehicle at lease end that is used in calculating the monthly payment. Retail Installment Sales Contract (Finance Contract) A contract for the sale of the vehicle between the seller and the buyer, in which the seller agrees to finance the sale under the terms set forth in the contract. The dealer is the seller and creditor on the contract, which is later assigned to a secondary finance source, such as TFS. Sales Price The agreed-upon value of a financed vehicle, between the seller and purchaser. In the payment calculator on this site, the MSRP for a popular model of the vehicle you selected is used as the sales price. Scheduled Termination The end of the lease term, as called for in the lease. It is also referred to as the scheduled maturity date. Standard Miles The mileage TFS assumes a vehicle will be driven when calculating a lease payment. The total allowable standard mileage is calculated by dividing the number of months in the term by 12 and multiplying this amount by 15,000. For example, the total allowable miles on a standard lease with a 36 month term is calculated as follows: 36 month term divided by 12 = 3 years; 3 years multiplied by 15,000 = 45,000. A charge is assessed for any mileage driven that exceeds this limit. Term The duration of the finance or lease contract, usually expressed in months (e.g. 24 months, 36 months). Trade-In Value The value of a vehicle credited toward the purchase or lease of another vehicle.

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