Money Factor

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Money Factor (also known as lease factor, lease rate, or factor) is an automobile financing term which represents the finance charge you end up paying on a car lease. It can be looked at as the equivalent of an APR. The money factor is usually given as a decimal, for example .0035, but is never the same for every company. It varies from person to person, car to car, and company to company and cannot really be determined until an actual lease is obtained. The reason for that is that companies are not legally required to publish any money factors or formulas for their calculation. To find the coinciding APR, you can multiply the money factor by 2400.^[1] The lower the money factor, the lower the car payment.

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