Glossary

Money Factor

The interest rate equivalent on a lease, expressed as a decimal.

Multiply the money factor by 2,400 to get the equivalent APR. For example, a money factor of 0.0025 = 6% APR. Always ask for the money factor in writing; dealers often hide it in lease paperwork.

Related terms

Lease Buyout

Purchasing your leased vehicle at the end of the lease (or earlier) for the predetermined residual value.

APR (Annual Percentage Rate)

The yearly cost of a loan including interest and fees, expressed as a percentage.

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