Capitalized Cost
Definition
- 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.
Synonyms
purchased price, selling price
Alternate Spellings
Cap Cost
Related Terms and Acronyms
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Mileage Allowance — Definition,
- The number of miles, specified in a lease, that a car may be driven over the life of the lease.
- Rebate — Definition,
- A manufacturer's reduction on the price of a car as an incentive to buyers. Rebates appeal to people with no credit or less-than-perfect credit who cannot qualify for the lowest-rate loan. A rebate may also appeal to first-time buyers who don't have a lot of cash for a down payment or another car to trade in.
- Sticker Price (RRP, MSRP) — Acronym,
- This shows the base price, the manufacturer's installed options with the manufacturer's suggested retail price (MSRP), the manufacturer's destination charge and the fuel economy (mileage). It is the Monroney label affixed to the car window and is required by federal law. The label may not be removed by anyone other than the purchaser.
