Posts Tagged: money factor

What is a car lease Money factor?

What is a money factor? Car leasing companies are in the business to make money and this “money factor” is where they make their profit. Here’s how it figured. Let’s say you negotiate the price of the car down $1,500 from the sticker price. To that you add the acquisition fee, sales tax, license, disposition fee, and any other transactional fees. You’re basically borrowing all that money from the leasing company and paying it off in monthly installments, so you have to pay interest on that money. The leasing company … Read More