What is a money factor in a car lease?

A money factor is the interest rate on a car lease expressed as a small decimal (e.g., 0.00125). To convert it to an APR, multiply by 2,400. So 0.00125 = 3.0% APR. Lower money factors mean lower monthly payments.

How do I convert a money factor to APR?

Multiply the money factor by 2,400. For example, a money factor of 0.00200 equals 4.80% APR (0.00200 × 2,400 = 4.80). This gives you the equivalent annual percentage rate to compare against loan rates.

Can dealers mark up the money factor?

Yes. Dealers can add 0.00050–0.00150 to the buy rate (the base rate set by the manufacturer's financing arm). This is why knowing the buy rate is critical — it gives you leverage to negotiate the markup away.

What is a residual value in a lease?

The residual value is the projected worth of the vehicle at the end of the lease, expressed as a percentage of MSRP. A higher residual means lower depreciation and lower monthly payments. Residuals are set by the manufacturer and are not negotiable.

Current Lease Money Factors & Residual Values

Q: What is a good money factor?

A money factor below 0.00150 (3.6% APR) is generally considered good. Below 0.00100 (2.4% APR) is excellent — these are typically manufacturer-subsidized rates. Anything above 0.00250 (6.0% APR) is high and worth negotiating down.

September 2026 OEM buy rates by make and model

17 makes162 lease programs

Look Up Money Factors

Best Money Factors This Month

Vehicle	Money Factor	APR	Residual	Term	Monthly
2026 Jaguar F-PACEP250 R-Dynamic S	0.00001	0.02%	53.1%	36mo	$679
2026 Audi Q7Premium	0.00001	0.02%	—	36mo	$629
2026 Audi Q8Premium Plus	0.00001	0.02%	—	36mo	$849
2026 Audi A5Premium	0.00001	0.02%	—	36mo	$489
2026 Mercedes-Benz Eqs580	0.00001	0.02%	48%	36mo	$1499
2026 Land Rover DefenderP300 S	0.00001	0.02%	57.3%	36mo	$939
2026 Mercedes-Benz Eqs450+	0.00001	0.02%	47%	36mo	$1219
2026 Mazda CX-90Turbo Select	0.00001	0.02%	58%	36mo	$269
2026 Mazda CX-90PHEV Preferred	0.00001	0.02%	56%	36mo	$299
2026 Mercedes-Benz C-class SedanAMG C63 S E Peformance	0.00001	0.02%	64%	24mo	$859

Money Factors by Make

Jaguar

Best MF

0.00001

APR Equiv

0.02%

Best Residual

53.1%

A money factor is the interest rate on a car lease, expressed as a small decimal like 0.00125. It's set by the manufacturer's captive lender (e.g., Toyota Financial Services, Honda Financial Services) and determines the finance charge portion of your monthly payment.

To convert a money factor to an equivalent APR, multiply by 2,400. For example:

0.00125 × 2,400 = 3.0% APR

These are "buy rates" — the base rates from the manufacturer's lender before any dealer markup. Dealers can (and often do) add 0.0005–0.0015 to the money factor, which adds 1.2–3.6% to your effective APR. Knowing the buy rate lets you negotiate the markup away.

Residual values are the projected worth of the vehicle at lease end, expressed as a percentage of MSRP. Higher residuals mean lower depreciation and lower monthly payments. Residuals are set by the manufacturer and are non-negotiable.

Frequently Asked Questions

What is a good money factor?

Below 0.00150 (3.6% APR) is good. Below 0.00100 (2.4% APR) is excellent — usually manufacturer-subsidized. Above 0.00250 (6.0% APR) is high and worth pushing back on.

Can the dealer mark up the money factor?

Yes. Dealers often add 0.0005–0.0015 to the buy rate, adding 1.2–3.6% to your effective rate. Unlike APR on a loan, they don't have to disclose the markup. Knowing the buy rate gives you leverage.

How often do money factors change?

Monthly. Manufacturers update money factors and residual values on the 1st or 2nd business day of each month. Programs can also change mid-month, though this is less common.

Are money factors the same everywhere?

Not always. Some manufacturers run regional programs with different rates. The data here reflects nationally available programs. Your local rate may differ slightly.