Understanding Lease mumbo jumbo-what is money factor?

andy603andy603 Member Posts: 59
edited August 2018 in Honda
Is there a way to figure out the money factor on a lease offer from Honda (its really hard for me to figure out) Here is what they say:

Offer is $259/month 36 month with $1999 down..then states: MSRP $25,245.00 (includes destination, excludes tax, license, title, registration, documentation fees, options, insurance and the like). Actual net capitalized cost $23,578.99. Net capitalized cost includes $595 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $9,324.00. Option to purchase at lease end $15,147.00
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  • pensfan83pensfan83 Member Posts: 2,748
    What your posting is an advertisement, not any offer. Often times you can negotiate far better terms than what any national add lists. However if you want to try and back into the numbers. I would recommend doing the following:

    1. Locate the topic titled "Lease Deals & Prices" for the Honda you want (you don't mention what car)
    2. Create a post asking for the residual value and money factor for the term you want (24 months, 36 months, etc) and the mileage you want (12K, 15K, etc). They'll also give you any available incentives though Honda rarely has any.
    3. The moderators will provide you a response and you can then plug the numbers into any number of lease calculators to see what money factor is being applied to the national ad though I would again stress that you can most likely do better than the offer you have in front of you.

    Good luck!
    1997 Honda Prelude Base - 2022 Acura MDX Type S Advance - 2021 Honda Passport Sport - 2006 BMW 330Ci ZHP
  • kyfdxkyfdx Moderator Posts: 261,579
    andy603 said:

    Is there a way to figure out the money factor on a lease offer from Honda (its really hard for me to figure out) Here is what they say:

    Offer is $259/month 36 month with $1999 down..then states: MSRP $25,245.00 (includes destination, excludes tax, license, title, registration, documentation fees, options, insurance and the like). Actual net capitalized cost $23,578.99. Net capitalized cost includes $595 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $9,324.00. Option to purchase at lease end $15,147.00

    If that's the LX model, the money factor is .00064

    You could reverse engineer the money factor from the information given, but it's easier to just come here and ask. ;)

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  • andy603andy603 Member Posts: 59
    yes, Im simply just trying to reverse engineer..the offer was for an LX...I'll see if your factor is correct..thanks
  • kyfdxkyfdx Moderator Posts: 261,579
    andy603 said:

    yes, Im simply just trying to reverse engineer..the offer was for an LX...I'll see if your factor is correct..thanks

    I guarantee it! ;)

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • andy603andy603 Member Posts: 59
    kyfdx said:

    andy603 said:

    yes, Im simply just trying to reverse engineer..the offer was for an LX...I'll see if your factor is correct..thanks

    I guarantee it! ;)
    you are correct sir! Good deal...too bad they're only offering on the LX...I just posted in sep note my offer for EX-L...36/12 .0028
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