capitalized cost

The total price of the vehicle, in effect, its purchase price. In theory, the cap cost should equal the amount you would pay for the vehicle if you were purchasing the vehicle. When a lease is made, the dealer sells that vehicle to the leasing company (for the cap cost), which then leases the the vehicle to you.
Also see

Dictionary of automotive terms. 2015.

Look at other dictionaries:

  • Capitalized Cost — An expense that is added to the cost basis of a fixed asset on a company s balance sheet. Capitalized Costs are incurred when building or financing fixed assets. Capitalized Costs are not expensed in the period they were incurred, but recognized… …   Investment dictionary

  • Capitalized Cost Reduction — Any upfront payment that reduces the cost of financing. Capitalized cost reduction is generally associated with the purchase or lease of an automobile, and reduces the monthly payment owed if the vehicle is financed. Reductions can be made from… …   Investment dictionary

  • capitalized cost reduction — A fancy name for a cash down payment, money you pay up front that is applied to the final purchase price of a lease. A large cap cost reduction will, of course reduce the monthly payments, but it will also negate one of the big advantages of… …   Dictionary of automotive terms

  • net capitalized cost — The price of the vehicle after deducting any dealer participation, manufacturer discounts, and cap cost reduction ( down payment ) from the MSRP …   Dictionary of automotive terms

  • cost — The price that a shop charges for a vehicle or one of its components. To the shop, it is the price they pay for the component (i.e., the net price) to which they add an amount or percentage to arrive at the selling price. Also see cap cost… …   Dictionary of automotive terms

  • cost reduction — See cap cost reduction capitalized cost reduction …   Dictionary of automotive terms

  • capitalized — See net capitalized cost …   Dictionary of automotive terms

  • cost basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cost basis n. The amount …   Law dictionary

  • Cost of goods sold — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Capitalized — Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives greater than one year. The New York Times Financial Glossary * * * capitalized cap‧i‧tal‧ized [ˈkæptl aɪzd] also… …   Financial and business terms

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