Capitalized Cost (Cap Cost) is the negotiated selling price of a leased vehicle. This is the only major lease component that's fully negotiable. Lower cap cost = lower monthly payment. A $3,000 reduction saves about $83/month on a 36-month lease.
Verdict: Legitimate
N/A - This is the negotiated price
Understanding Cap Cost
Cap Cost Breakdown
- • Gross Cap Cost: Selling price + acquisition fee + any add-ons
- • Cap Cost Reductions: Down payment + trade equity + rebates
- • Net Cap Cost: Gross Cap Cost − Cap Cost Reductions
What's Negotiable in a Lease
| Component | Negotiable? |
|---|---|
| Capitalized Cost | YES - Fully negotiable |
| Money Factor | ~ Ask for base rate |
| Residual Value | ✗ Set by manufacturer |
| Acquisition Fee | ✗ Set by finance company |
Pro Tip
Negotiate the cap cost like you're buying the car outright. Get competing quotes, shop multiple dealers, and focus on the selling price—not the monthly payment.