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.

In a lease contract, the amount of any net trade-in allowance, rebate, non-cash credit, or cash paid that reduces the gross capitalized cost.

A down payment, in the form of cash or a vehicle trade-in, that decreases the capitalized cost.

Any down payment, net trade-in allowance or rebate that reduces the gross capitalized cost, resulting in an adjusted capitalized cost.

Anything that reduces the capitalized cost before the monthly payment is calculated. It usually includes your cash downpayment, trade-in credit and manufacturer's rebate.

A reduction in the capitalized cost resulting from cash down, trade-in allowance, factory rebate, or dealer discount. Often it is simply referred to as a down payment.

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.

Auto leasing term that is synonymous with the down payment you make on a new auto loan, or the trade-in value that you receive.

The sum of any down payment, net trade-in allowance, and rebate used to reduce the gross capitalized cost. The cap cost reduction is subtracted from the gross cap cost to get the adjusted cap cost.

The amount of any net trade-in allowance, rebate, non-cash credit, or cash paid that reduces the gross capitalized cost. This is sometimes referred to as a down payment.

The amount of any net trade-in allowance, rebate, noncash credit, or cash which you pay that reduces the gross capitalized cost. This is sometimes referred to as a down payment.

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.

A down payment or other credit that lowers the capitalized cost of a lease Read more

A term used in leasing that means cash down payment or some other consideration made at the beginning of the lease term, such as a trade-in.

A down payment made on a vehicle lease.

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.

A capital cost reduction is a down payment, in the form of cash or trade-in, that is applied to the final purchase price of the vehicle reducing the monthly lease payment.

A leasing term synonymous with cash down payment or other consideration made at the beginning of the lease term, such as a trade-in.

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.

The amount of any cash or trade-in allowance that is applied to reduce the capitalized cost and consequently, the monthly lease payment.

A reduction of the gross capitalized cost, paid by the lessee, either in the form of cash or non-cash credit from the lessee's trade-in or rebates.

An initial payment in a lease — either cash, net trade-in amount, or rebate — that reduces the capitalized cost.

The amount paid in cash or trade-in at the inception of a lease, similar to a down payment.

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.

Any up-front or down payment that reduces the capitalized cost, thereby reducing monthly payments.