Broker Black shows lease payments instead of money factors, but the conversion is worth knowing: multiply the money factor by 2,400 and you have the APR. A money factor of 0.00250 is a 6.0 percent APR. The rule works because a money factor is the monthly rate divided by two, and 12 months times 2 times 100 is 2,400.
Rent charge is (selling price plus residual) multiplied by the money factor: ($50,000 plus $30,000) times 0.00250 is $200 a month. It is the part of a lease payment that is not depreciation or tax.
| Money factor | APR | Rent charge per month on a $50,000 selling price and $30,000 residual |
|---|---|---|
| 0.00100 | 2.4% | $80 |
| 0.00150 | 3.6% | $120 |
| 0.00200 | 4.8% | $160 |
| 0.00250 | 6.0% | $200 |
| 0.00300 | 7.2% | $240 |
| 0.00350 | 8.4% | $280 |
Good is relative to the base rate the lender publishes that month for that model and term. A payment built on the base rate, or on a subsidized rate, is the number to aim for. Because Broker Black applies the current program directly, the way to check is to compare the payment on the vehicle page against the same car on any other site with the same term, miles, and money down.
A money factor is the monthly interest rate divided by two (because interest is charged on the average of the price and residual). Multiply by 2 to undo the halving, by 12 for a year, and by 100 for a percentage: 2,400.
No. Residual matters as much. A high residual with an average factor can beat a low factor with a weak residual. Compare payments, not factors.
No, it shows the payment the program produces at your profile. The dealer's contract discloses the rent charge, which is the money factor's effect in dollars.
Yes, within the lender's cap. On Broker Black each partner dealer sets its own markup and the published payment already reflects it.