[Vipergrün]

Cap cost is the amount financed, The “cap cost reduction,” refers to any cash down payment, trade-in credit, or rebate amount that decreases, or reduces, the amount being financed (capitalized cost).

If I walk and buy their lease special, the car is probably at full sticker and I have to pay 2500 in cap cost reduction. However, what if I negotiated the price of the car 3000 off sticker and decide to lease? I essentially have an additional 500 cap cost reduction, and my payment and taxes will be lower.