base interest rate

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 would multiply the money factor by 24. The result would be 0.0662 or 6.6%.

Dictionary of automotive terms. 2015.

Look at other dictionaries:

  • Base interest rate — Related: Benchmark interest rate. The New York Times Financial Glossary …   Financial and business terms

  • base interest rate — Related: benchmark interest rate. Bloomberg Financial Dictionary …   Financial and business terms

  • base interest rate — Fin the minimum interest rate that investors will expect for investing in a non Treasury security …   The ultimate business dictionary

  • interest rate — See base interest rate buy at end of term interest rate net interest rate …   Dictionary of automotive terms

  • interest rate — n. The percentage used to calculate interest due on a loan. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. interest rate …   Law dictionary

  • Interest rate — Finance Financial markets Bond market …   Wikipedia

  • interest rate — noun the percentage of a sum of money charged for its use (Freq. 1) • Syn: ↑rate of interest • Hypernyms: ↑rate, ↑charge per unit • Hyponyms: ↑discount rate, ↑ …   Useful english dictionary

  • interest-rate margin — 1) The difference between the interest rate at which banks lend and the rate they pay on deposits. It is likely to be a major indicator of a bank s profitability. 2) The amount charged to borrowers over and above the base rate This margin is the… …   Big dictionary of business and management

  • interest rate — The amount charged for a loan, usually expressed as a percentage of the sum borrowed. Conversely, the amount paid by a bank, building society, etc., to a depositor on funds deposited, again expressed as a percentage of the sum deposited. See:… …   Accounting dictionary

  • interest rate — The amount charged for a loan, usually expressed as a percentage of the sum borrowed. Conversely, the amount paid by a bank, building society, etc. , to a depositor on funds deposited, again expressed as a percentage of the sum deposited. See… …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.