What is the meaning of Capitalized (cap) cost?

Capitalized (cap) cost is 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.

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APABarry Goldsmith. (2010). Capitalized (cap) cost. Retrieved September 20, 2026, from http://smartdefine.org/capitalized_(cap)_cost/definitions/1149424
ChicagoBarry Goldsmith. 2010. "Capitalized (cap) cost" http://smartdefine.org/capitalized_(cap)_cost/definitions/1149424 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, Capitalized (cap) cost, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/capitalized_(cap)_cost/definitions/1149424>.
MLABarry Goldsmith. "Capitalized (cap) cost" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/capitalized_(cap)_cost/definitions/1149424>