Toyota and Honda Just Made Leasing Way More Expensive

Toyota and Honda both increased their lease money factors starting June 1st, and the change is significant enough that you need to adjust your shopping strategy right now.

Toyota's captive finance arm pushed money factors up an average of 0.00035, which translates to roughly a 0.84% APR increase. That means a Camry lease that would have cost you an effective 6.1% last month is now running at 6.94%. Honda Financial Services went even further, with money factor increases of 0.00040 on most Accord and CR-V trims, pushing effective rates north of 7.2%.

Why does this matter? Because leasing was one of the last affordable ways to drive a new car, especially for these typically reliable brands. A $35,000 CR-V that penciled out to $420 a month in May is now closer to $455 with identical terms. That's $1,260 more over a three-year lease.

What You Should Do

If you're currently shopping Toyota or Honda and considering a lease, you have two moves. First, check if any dealers still have allocations under the old money factors. Some contracts written before June 1st might still be processable, though inventory is tight. Second, run the numbers on financing instead. With the Fed holding rates steady and both brands offering subvented APR deals on select models (we're seeing 4.9% on Tacoma and 5.4% on Pilot), buying might actually cost less monthly than leasing right now.

The broader lesson here: captive lenders are clearly expecting rates to stay elevated longer than anyone predicted six months ago. If you were waiting for leasing to get cheaper, stop waiting. It's moving in the wrong direction, and Nissan and Mazda will likely follow this pricing lead within weeks.

Run your numbers at lease vs buy before you sign anything.