Are Car Lease Interest Rates Higher or Lower than Auto Loan APRs?
Car lease interest rates are often higher than auto loan APRs. This occurs because car lease interest rates are expressed as money factors, which are not often clearly advertised to potential buyers. For example, while finance companies or auto manufacturers may advertise 0% APR offers on auto loans, car lease money factors are in a more constant state of flux. Additionally, other fees such as acquisition or disposition fees can be lowered in exchange for charging higher car lease interest rates. In order to get an idea about car lease interest rates, you should contact a dealership and ask about the current money factor for cars in which you are interested.
