Money Factor Question

Hi All,

To begin, I cannot thank everyone on here enough for the wealth of information and camaraderie I have seen on here. What a wonderful and enlightening forum. I have only been on for a few weeks, but have learned so much.

Moving forward, and forgive my ignorance, but my question is surrounding MF and how exactly that is calculated or I should say, how it is incorporated. I had been having a discussion regarding this with an Infiniti Dealer regarding Money Factor for a Q50 3.0t Sport. I had asked him to confirm if the MF was in fact .00003 as was indicated on Edmunds forums, and he replied ‘.000829 based on the rate of 1.99%’

So my question is whether the MF that is provided on Edmunds is based on one month’s payment only, or is that the actual rate?

I am completely confused as to how the dealer (who is actually the General Manager) would not budge on the .000829, when the actual is .00003.

If anyone could glean some light on this, I would really appreciate.

Short answer: assuming the MF is national or correct for your region, dealers can mark it up for extra profit.

Hi Max,

Thank you for the reply.

I guess what I am asking is whether the .00003 is the annual rate or monthly? The money factor is relatively the same throughout North America for that specific vehicle. However if you look at dealer incentives for the month, it does in fact show 1.9% APR. So which is right? Is Infiniti themselves bloating the MF/APR?


OEM advertised APRs are typically for purchase. Are you sure it was for a lease ?

MF x 2400 = APR with the “A” being Annual. People normalize interest rate to APR so you can talk apples-to-apples and not have one person quoting you a monthly rate vs an annual rate.

Most companies talk MF when talking about leases. Like @max_g said, APR is used for purchases. MF (lease) and APR (purchases) are not the same so you can’t just swap them out. People do the MF x 2400 to get the APR just to see what it looks like as a APR %. But you cannot take a purchase APR and apply it to a lease and vice-versa

Hi Chris,

I understand that MF are used for leases however both Infiniti AND the general manager of the dealership are using 1.99% for the lease. With regards to Infiniti itsel, it indicates the 1.99% rate after you build the vehicle there and use their payment calculator.

Ford also shows a percentage for the MF whenever I have received a quote from them. They might show something like 1.9, etc. Just divide that by 2400 for an idea of what the MF would equal.

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