The money factor, decoded: leasing's interest rate as a decimal
The money factor: leasing's most confusing number. It's interest, dressed as a decimal. Here is how to read it, in under a minute. From Champion Auto Finance.
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Transcript
The money factor: leasing's most confusing number. It's interest, dressed as a decimal. Here is how to read it, in under a minute.
Multiply it by twenty-four hundred and you get the interest rate your lease has been charging. Point zero zero two seven five? That's about six point six percent.
Here's the part that matters at lease end: the money factor does not touch your buyout price, and it does not follow you onto the loan.
Your buyout loan gets a real interest rate, from today's market and your credit. If your lease carried a marked-up money factor, the loan can genuinely cost less.
Champion Auto Finance quotes rates as rates, no decimals in disguise, subject to lender approval, across New Jersey, New York, and Pennsylvania. Get your number at championautofinance dot com.
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