Car Leasing Glossary - Capitalized (Cap) cost

Capitalized (Cap) cost (car leasing term)

A leasing term that refers to the price of the car. The lower the capitalized cost, the lower the monthly lease payment. The cap cost is negotiable and can be reduced by a cash down payment, trade-in or a manufacturer's rebate; it can be increased by the loan acquisition fee or costs left over from a previous lease.

Car Leasing Capitalized (Cap) Cost Reduction