An initial cash payment on a lease of up to 20%, similar to a down payment. The more you pay at the start of the lease, the lower the monthly payments. This could be in the form of cash, or the value of a trade, or a combination of the two.
A reduction in the capitalized cost resulting from cash down, trade-in allowance, factory rebate, or dealer discount. Simply referred to as a down payment. Typically shortened to Cap Cost Reduction or Cap Reduction.
A deposit on the lease, which reduces the monthly lease payment. This is like a down payment on a car that you finance with a loan. When you subtract the cap cost reductions from the cap cost, you get the net cap cost, also called the adjusted cap cost. In addition to cash reductions, rebates by the manufacturer or the dealer and the net trade-in allowance are also cap cost reductions.
An initial payment on a leased vehicle, which then lowers the monthly lease payment. That payment can consist of cash, a trade-in allowance on an existing vehicle or rebates and incentives provided by the manufacturer. The adjusted cap is the gross cap cost less the capitalized cost reduction.
Cash, rebate, and/or net trade-in value of a vehicle which is applied to a lease at inception in order to reduce the Capitalized Cost. The Capitalized Cost Reduction is similar to a down payment on a retail installment sale contract.
This is similar to a down-payment. This can include amounts to be paid in cash, noncash credit, rebate and/or trade-in allowance. Since this reduces the monthly lease payments, it is taxable. This is one way to reduce your monthly payment but it is not money that you will recover at the end of the lease. You are basically paying part of the monthly payments in one lump sum, thereby reducing the amount due each month.
This is a fancy name for a cash down payment, money you pay up front that is applied to the final purchase price. A large cap cost reduction will, of course, reduce the monthly payments, but it will also negate one of the big advantages of leasing. However, if you own your present car, you may be able to use it, as a trade-in, to satisfy the cap cost reduction to start the lease. Another source of capital cost reduction may be dealer or manufacturer participation. Dealers and manufacturers will sometimes simply lower the cap cost or offer a rebate that reduces the cap cost. A dealer or manufacturer cap cost reduction does lower your total out-of-pocket dollars, unlike a cap cost reduction that you must pay.
Any reduction in the original asking price of the vehicle. The reduction can result from a down payment, rebate, dealer incentive, or negotiation between the dealer and the customer. Also called Cap Cost Reduction or Cap Reduction.
The total of the cash down, retailer or manufacturer rebates, non-cash credit or any net allowance received from a trade-in that is used to reduce the gross Capitalized Cost, which can further reduce your monthly payments.
A down payment or other credit that lowers the capitalized cost of a lease. The down payment may come in the form of cash and/or a rebate, trade-in allowance or other credit. Let's say you decide to lease a car with a manufacturer's suggested retail price of $19,675, but you negotiate that down to $18,000. Let's say the sales tax in your area is 5 percent, which equals $900. Your gross capitalized cost becomes $18,900. In addition, you have an older trade-in vehicle valued at $5,000 and you're benefiting from a $1,000 manufacturer rebate. You would subtract these from the $18,900, and your adjusted capitalized cost would be $12,900.