Cap Cost Reduction
A down payment on a lease. Reduces monthly payment but is non-refundable.
Why it matters
Cap cost reduction is the lease equivalent of a down payment. It reduces the cap cost (and therefore the monthly payment) but you do NOT get it back at lease end — and if the car is totaled early, the down payment is lost. Most lease experts recommend zero or minimal cap cost reduction; pay only the first month, taxes, and acquisition fee.
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