APR varies depending on the loan offer, and whether its a good or bad APR really depends on the economy, your individual tolerances and qualifications.
A higher APR means higher, short-term payments. A lower APR means a lower monthly payment, but loans of this kind are dependent upon a strong economy and a high credit score for the borrower.
APR versus Money Factor
Simply put, if you're leasing a car, your monthly payments include depreciation, taxes, and interest, and the money factor determines the interest charge. In this way, a money factor is used in lieu of APR. Are they equivalent? Not really.
Then why are money factors even a thing? Well, because leases require more specific components in the equation, making it much harder to calculate in the conventional way. So, instead we use a money factor.
Nonetheless, calculating the equivalent APR for your lease can still be helpful. You can convert your money factor into the more commonly used APR by simply multiplying the money factor by 2,400.
