Capitalized Cost Capitalized Cost Reduction Lease Payment 
Shawn Ryder
JANUARY 21, 2025
Initial Payment: Many leases require an upfront payment, which could be akin to a down payment but usually termed as a “capitalized cost reduction.” ” Residual Value: This is the estimated value of the vehicle at the end of the lease term, factoring into your monthly lease payments.
Shawn Ryder
JANUARY 18, 2025
However, the down payment, also referred to as a capitalized cost reduction, is the initial amount you pay upfront to lower your monthly payments. Can You Adjust the Down Payment on a Lease? The short answer is yes; you can adjust the down payment on a lease.
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