(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.
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.
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
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.
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.
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.
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.
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.
Expenditure identified with goods or services acquired and measured by the amount of cash paid or the market value of other property, CAPITAL STOCK, or services surrendered. Expenditures that are written off during two or more accounting periods.