If you’re shopping for a Lexus RX, you’re not alone. The RX has been the top-selling Japanese luxury SUV for years, blending comfort, technology, and reliability in a package that appeals to a wide range of drivers.

But when you lease one, there’s a number buried deep in the contract that can make or break your deal: the money factor. Most shoppers overlook it — and that’s exactly how dealers quietly add hundreds or even thousands of dollars to your cost.

In this guide, we’ll break down:

• What the money factor is

• How it’s converted to APR

• How dealers mark it up

• A real-world example with a $62,000 Lexus RX

• How you can protect yourself and save thousands

What Is a Money Factor?

The money factor (MF) is the lease equivalent of an interest rate. Instead of an APR, leasing companies use a small decimal like 0.00125.

To compare MF to APR, use this formula:

APR ≈ Money Factor × 2400

• MF 0.00125 ≈ 3.0% APR

• MF 0.00165 ≈ 3.96% APR

• MF 0.00205 ≈ 4.9% APR

👉 The higher the MF, the more interest you pay.

How Dealers Mark Up the Money Factor

Each month, the leasing bank (e.g. Lexus Financial Services) publishes a buy rate — the lowest money factor available to top-tier credit customers.

Here’s the catch:

• Dealers are allowed to mark up the buy rate by +0.00040.

• The result is called the sell rate, which is what you actually pay.

• The dealer pockets the difference as profit.

Example:

• Buy rate: 0.00125 (≈ 3.0% APR)

• Dealer adds +0.00040 → 0.00165 (≈ 3.96% APR)

• You pay the higher rate, even though you qualified for the lower one.

This markup alone can add $1,000+ to your lease cost — and most customers never realize it.

Example: Leasing a 2025 Lexus RX ($62,000 MSRP)

Let’s run the numbers on a real-world RX lease.

Assumptions:

• MSRP: $62,000

• Our Service Discount: 10% → $55,800 selling price

• Residual: 57% ($35,340)

• Term: 36 months / 10k miles

• Taxes/fees: $2,500 rolled in

Case 1: Base Money Factor (Buy Rate 0.00125 ≈ 3.0% APR)

Depreciation Portion

• $55,800 – $35,340 = $20,460

• $20,460 ÷ 36 = $568/month

Finance Charge

• ($55,800 + $35,340) × 0.00125 = $114/month

Total Payment

• $568 + $114 = $682/month before tax (~$730 all in)

Case 2: Marked-Up Money Factor (0.00165 ≈ 3.96% APR)

Depreciation Portion

• Same: $568/month

Finance Charge

• ($55,800 + $35,340) × 0.00165 = $150/month

Total Payment

• $568 + $150 = $718/month before tax (~$770 all in)

The Impact of a +0.00040 Markup

At first glance, the difference doesn’t look huge — just $36 more per month. But stretched over a 36-month lease, that’s nearly $1,300 wasted — and all of it goes straight into the dealer’s pocket.

Now imagine stacking that with:

• No discount (paying MSRP instead of $55,800)

• Upfront dealer fees

• Add-on products

Suddenly, you’re paying $150–$200/month more than you should. Over three years, that’s $5,000–$7,000 lost.

Why This Matters for Lexus RX Shoppers

The RX is so popular that many shoppers assume the payment is “what it is.” But your deal could look very different depending on how the money factor is handled.

• With buy rate + discount, you’re leasing at ~$730/month.

• With markup + MSRP, you could pay $900+/month.

• That’s a $6,000+ swing over three years, on the exact same vehicle.

How to Protect Yourself

1. Ask for the buy rate
   Dealers may hesitate, but you’re entitled to know the base MF.

2. Check your credit tier
   Only top-tier credit qualifies for the buy rate. If you’re borderline, you may legitimately get a higher MF.

3. Watch for the +0.00040 markup
   If the numbers don’t add up, assume the dealer added it.

4. Use Multiple Security Deposits (MSDs)
   Lexus often allows you to put down refundable deposits to lower the MF — saving you even more.

5. Work with a transparent service
   At AutoCompanion, we structure deals at the buy rate, no hidden markups, and show you penny-perfect numbers upfront.

Key Takeaway

When leasing a Lexus RX — or any luxury SUV — the money factor is one of the most overlooked costs. Dealers can legally add +0.00040 to the buy rate and pass it to you as the sell rate. That small change could cost you $1,300 or moreon your lease.

• Base MF + Discount → ~$730/month

• Markup MF + MSRP → ~$900/month

• Your Potential Savings = $6,000+

Final Word

The Lexus RX is a smart choice, but your lease deal should be just as smart. Don’t let a hidden money factor markup eat into your savings.

At AutoCompanion, we make sure you’re leasing at the buy rate — not the marked-up rate — so your monthly payment is as low as possible.