capitalized cost reduction


Amount of money used when purchasing a car that is paid up front in order to get lower monthly lease payments. This can come from the trade-in value of the previous car, or from a cash down payment.

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When I bought the car, I was reminded of capitalized cost reduction and how it would apply to me in the future.

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The capitalized cost reduction strategy is the most logical option as it is a win win situation lower interest payments to be made.

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After my vehicle began suffering from engine trouble, it became apparent that I should begin saving my money to build a capitalized cost reduction fund to secure lower lease payments.

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