Adjusted capitalized cost

The adjusted capitalized cost (a.k.a. adjusted cap cost) is the key figure in our lease. It is the amount of the car’s value we are actually financing during the term of the lease.

The “adjusted cap cost” is one of the main drivers of our monthly lease payment, along with our interest rate (“Rent Charge”).

To calculate it, start with the cap cost. This is the agreed-upon negotiated sales price of our car, truck, mini-van or SUV…

Then SUBTRACT:
– any down payment…
– any trade-in value…
– any manufacturer’s incentives and/or rebates.

Then ADD:
– the cost of GAP insurance (or similar costs)…
– government fees like taxes, title and license fees.

The result will be the adjusted capitalized cost.