Lease rate

(redirected from Money Factors)

Lease rate

The payment per period stated in a lease contract.

Lease Rate

In a leasing agreement, the interest rate. For example, when one leases a car, the bank or leasing company buys the car from the dealer, and lends its use to the driver until he/she pays back the purchase price plus some extra money. The extra money is the interest or lease rate. It is presented as a very small number, say .00220. One arrives at this number by dividing the APR by 2400. In this case, .00220 is the equivalent of a 5.28% interest rate. It is also called the money factor or simply the factor.
References in periodicals archive ?
The way things are, though, with league reconstruction and money factors, there's nothing you can really do other than groundwork.
From there, payment scenarios can be ranked based on rates, money factors, residuals, and program parameters.
Principal among the money factors has been inflation.
First, drive-through banking, then ATMs and the expansion of banks into supermarkets - these are all money factors that have had their impact on retailing.
Third, interest rates continue to trend lower reducing the money factors used to calculate leases.
The software includes industry-grade pricing and option information, driving reviews, leasing residual values and money factors, safety information, advice, automotive news and other resources.