Negotiating a Lease

Capitalized Cost

Absolutely negotiable!  The gross capitalized cost (“cap cost”) is the value of the vehicle that is agreed upon (the sale price).  It does not include anything that you agree to pay for over the lease term (amortized amounts), such as fees, services, insurance, taxes and any prior money balance.  If you do not negotiate the value of the vehicle, you are losing money.

To get a sense for what the cap cost should be, see the section entitled "Shopping for your Car" to determine what a fair cap cost looks like.  Your cap cost is one of the leading drivers in reducing your final lease payment, so it's important to negotiate the lowest possible cap cost.

You should be able to negotiate the same cap cost for a lease as you would for a purchase.  Don't let a dealer tell you that the pricing should be different.