This represents the interest paid on the usage of the vehicle during a lease. It is the ‘cost' of a lease before factoring in discounts, fees, and penalties and is not directly comparable to the APR for a loan. Lowering the base interest rate is one of the methods manufacturers use to subsidize leases. The phrase ‘money factor' measures the same cost and can be converted into a base interest rate. For example, to convert a money factor of 0.00276 into an approximate base interest rate we would multiply the money factor by 24. The result would be 0.0662 or 6.62%.