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What is a money factor on a car lease?

A money factor is the lease equivalent of an interest rate. It is expressed as a small decimal number (like 0.00125) rather than a percentage. To convert a money factor to an approximate APR, multiply it by 2,400. So a money factor of 0.00125 equals roughly 3% APR. The money factor determines the finance charge portion of your monthly lease payment.

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