In more detail
A money factor of 0.0025 is about 6%. The monthly payment is depreciation plus finance: (cap cost − residual) / term + (cap cost + residual) × money factor.
Glossary
Finance
Money factor
The money factor is the finance charge used in a car lease; multiply it by 2,400 to get the approximate annual percentage rate.
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See also
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Glossary
APR
APR (annual percentage rate) is the yearly cost of borrowing, expressed as a percentage, that includes the interest rate plus certain fees.
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Glossary
Depreciation
Depreciation is the loss in value of an asset over time through wear, age or obsolescence.