Money Factor (MF) is the interest rate on a car lease expressed as a small decimal number (like 0.00125). To convert to a traditional APR, multiply by 2,400. For example: 0.00125 × 2,400 = 3.0% APR. While the base rate is set by the manufacturer, dealers can mark it up for hidden profit.
Verdict: Legitimate
N/A - This is a lease term, not a fee
How Money Factor Works
The 2,400 Formula
Money Factor to APR: MF × 2,400 = APR%
APR to Money Factor: APR% ÷ 2,400 = MF
Money Factor by Brand (2026 Examples)
| Brand | Typical MF | APR Equivalent |
|---|---|---|
| Toyota/Lexus | 0.00100 - 0.00150 | 2.4% - 3.6% |
| Honda/Acura | 0.00125 - 0.00175 | 3.0% - 4.2% |
| BMW/Mercedes | 0.00150 - 0.00225 | 3.6% - 5.4% |
| Hyundai/Kia | 0.00100 - 0.00200 | 2.4% - 4.8% |
How Dealers Mark Up Money Factor
The Hidden Markup
Dealers can add 0.0003 to 0.0010 to the base money factor without disclosure. On a $40,000 lease, a 0.0005 markup = ~$720 extra over 36 months. Always ask the dealer: "What is the base money factor from the manufacturer?"