This is for the pros. If the money factor is too high. Does one pay lease save you the money from paying interest and goes straight to the principle? or do you still pay the total financed and interest in a one pay?
Doing a one-pay lease means you won’t pay interest on the deprecation cost (i.e. the payments you’re making during the duration of your lease). It also can introduce a discount to the MF, but that’s lender dependent.
Im confused you said i dont have to pay interest but they will discount the money factor. Money factor is the interest rate.
On the One Pay, you don’t pay a interest charge on the money you just paid. That goes straight to principal. You do still pay an interest charge (MF) on the residual value of the car.
Remember, when you lease, you are actually paying interest for 2 pieces. The loan to cover the lease, and the interest on the loan to cover the residual. So doing a one pay gets rid of the lease payment interest piece, but you still have the residual value interest piece to cover.
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