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.

Use this term in a sentence

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

​ Was this Helpful? YES  NO 5 people found this helpful.

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

​ Was this Helpful? YES  NO 6 people found this helpful.

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.

​ Was this Helpful? YES  NO 9 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
capitalized cost capitalized interest