What is a money factor or lease factor?
A money factor is also known as the “lease factor,” and it is a way to present the implicit rate of interest charged on financing a lease with monthly payments. If you multiply the money factor by 2400, it equals the effective interest rate.
TIP: If you are shopping for a lease, ask the dealer what “money factor” is being used to calculate the lease payment. Ask if that is the lowest money factor available.