The Consumers Guide to Auto Leasing
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Car Leasing Glossary - Money Factor

Money Factor (car leasing term)

A number often used by lessors to calculate the average monthly rent charge portion of the lease payment.

A leasing term that expresses the cost of borrowing. It is similar to the interest rate paid on a conventional car loan, but it is expressed as a difficult-to-understand fraction. To convert the money factor to a recognizable interest rate, multiply it by 24. For example, a money factor of .00345 x 24 = 9 percent interest. The money factor is negotiable, and consumers who lease a new car should look for a money factor close to the current interest rate charged for new-car loans.

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