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FINANCE
Cap Cost (Capitalized Cost)
The "price" of a leased vehicle. What you negotiate down at lease signing.
// Why it matters
In a lease, the cap cost is the equivalent of the purchase price — it's the agreed-upon value of the vehicle that the lease payment is based on. A lower cap cost = lower monthly payment. Always negotiate cap cost FIRST as if you were buying, then convert to a lease. Dealers will sometimes try to skip cap cost negotiation and jump straight to monthly payment — that's a manipulation tactic.
// Related terms
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