The easiest way to determine your Money Factor is to take the Money Factor number and multiply it by 2400. This will equate to a similar Interest Rate like you would see on a loan. While this is a good approximation of what you will be paying in interest, you need to remember that a money factor works slightly differently because of the structure of a lease. (For more information about how money factors work, see “Leasing Basics”) Typically a Money Factor will look something like this: .00250. If you multiply this Money Factor by 2400 you will get the equivalent interest rate:
.00250 multiplied by 2400 = 6%
OR you can work backward to determine your target Money Factor:
6% (or just the number 6) divided by 2400 = .00250.
If you are uncomfortable with this math on the spot with the dealer, you should consider waiting until you get home to make your final purchase decision. The dealership environment is a difficult place to make a sound business decision.
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