(Purchase Price) - The vehicle valuation determined by the Lessor or Dealer as the basis for calculating the lease, rate, (monthly payment). Usually factory invoice plus dealer mark up (profit). Plus any dealer installed options and any credit life insurance, disability insurance and extended warranty not paid for by the lessee at time of delivery.
The price you agree to pay for the car. Compare it with the MSRP, or sticker price. The capitalized cost should be much lower. In fact, it should be closer to the "invoice price," which is, in theory at least, what the dealer paid the manufacturer for the car. Your down payment and trade-in should reduce the capitalized cost; if they don't, there's a problem. Also, points you've earned from the manufacturer's affinity credit card apply to the cap cost.
The amount of an asset shown on the balance sheet, from a financial reporting perspective. The total capitalized cost may include the asset's cost plus other amounts such as sales tax.
Also called "cap cost." The dollar figure that the lease is based on. It includes the price of the car plus selected options. Other costs such as title, license and documentation fees can sometimes be added in.
The total amount set by the lessor as the value of the goods leased. This amount is the basis for all calculations of payment amount, interest costs, and sales tax.
Value of the vehicle plus amortized amounts, paid over the course of the lease. Also called gross capitalized cost.
Equivalent to the price of the car, including any add-ons, extra warranties, insurance, rustproofing, or other options that you've agreed to pay for.
The total amount (cost of equipment plus other initial, indirect costs) which forms the basis by which future tax benefits are calculated.
The price a buyer agrees to pay for a leased vehicle. The monthly lease payment is based on its depreciation, interest, administration, etc.
The price of a leased vehicle and other amounts which are capitalized in the lease, including optional equipment, license, title and registration fees, and taxes.
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. Result:14 - Real Estate / Mortgage Glossary
The total price of the car including taxes, registration fees, extended warrantees, etc.
A leasing term that refers to the price of the vehicle. This cost is negotiable and can be reduced by a cash down payment, trade-in, or a manufacturer's rebate. The lower the capitalized cost, the lower the monthly lease payment. This cost can also be increased by the loan acquisition fee or any costs that remain from a previous lease.
Auto leasing term that is synonymous with the sale price of the auto.
This is a term that is generally on your lease contract. This is the sale price of your vehicle. These capitalized costs can be reduced by trade-ins, and by making down payments.
The shortened term for either gross capitalized cost or adjusted capitalized cost, both require disclosures under federal law. Some states require that the term "capitalized cost" be used in state lease disclosures.
Or cap cost. In the automobile leasing industry, a car's cap cost is what the dealer has determined the car would cost if it were being sold. If you're leasing a car, you will make a monthly lease payment based on its capitalized cost.
In auto leasing, the capitalized or cap cost is the same as the price of the car. Consumers can and should negotiate the cap cost, just as they would negotiate the price of the car in a purchase deal.
The selling price of a car, option, warranty, insurance, rust proofing, or another goody. Think of this as the value of your car at the beginning of the lease, whereas the residual value is the value of the car at the end of the lease.
Often used to refer to the negotiated selling price of a vehicle to be leased. May be used to refer to the gross capitalized cost or the adjusted capitalized cost.
The equivalent of the purchase price of a leased vehicle. Whereas a new car has a "price," a leased vehicle has a "capitalized cost" (the amount that accrues interest).
The total amount financed under a lease agreement, similar to the selling price of an automobile when purchased.
The selling price of a car in a vehicle lease.
This is the total price of the vehicle-in effect, its purchase price. In theory, the cap cost should equal the amount you would pay for the vehicle if you were purchasing the vehicle. When a lease is made, the dealer sells that vehicle to the leasing company, which then leases the vehicle to you. The capitalized cost is the price the dealer actually receives for the vehicle.
Often called the cap cost, this is basically the negotiated price of the car and all the options. This becomes one of several figures used in calculating a monthly lease payment.
The capitalized cost is the total Final purchase price of the vehicle. This will sometimes be referred to as "Cap Cost". You may have heard of MSRP (Manufacturer's Suggested Retail Price) - this is just the list price of the vehicle to a customer. It is not necessarily what you will ultimately pay for the car.
This is the total purchase price of the vehicle. The price includes the cost of all extras such as vehicle options, extended warranties, life insurance, and rustproofing. The capitalized cost equals the amount you would pay for the vehicle if the vehicle were being purchased.
The negotiated selling price of the vehicle.
The unadjusted selling price of the asset and related items such as options, accessories, taxes and services which are included prior to the application of any reductions.
Net price of the vehicle after subtracting trade-in, incentives and down payment. Used for determination of depreciation and monthly payments.
The total amount of value for the car upon which a lease is based, similar to the selling price of an automobile you purchase.
The price of the leased vehicle plus any other charges such as fees or taxes that become the cost basis for calculating the terms of a lease.