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09212015, 09:36 PM  #1 
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Need help understanding Money Factor
Featured on BIMMERPOST.com 1.01 x 2400? 1.01/2400?? help? thanks 
09232015, 10:57 AM  #2 
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1.01 makes no sense as a money factor as it's way too high.
You just take whatever the money factor is and multiply it by 2400. It's the interest rate. If they were giving you a 1.01 money factor then your interest rate would be 2,424%. 
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09252015, 03:33 AM  #4 
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It would be much simpler if they just gave the interest rate, full stop. Don't need another metric that tells you the thing.

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09252015, 05:40 AM  #5 
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09292015, 08:18 PM  #6 
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Lease Terms
Lender BMW Financial Services Term 36 Months Mileage 10,000/year Money Factor 1.3 Residual Factor 66% so what is the interest rate then? I got this straight off a quote from bmw dealership 
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09292015, 08:25 PM  #7 
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I'm guessing they actually meant .00130 which is the base MF for some of the programs right now.

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10022015, 07:29 PM  #9 
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That's exactly what they did  make it "look" like something it isn't and then the buyers, most of which don't know much about "arithmetic," run around afterwards telling their friends what a great interest rate they got (and what stellar negotiators they are)

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