Re: Could somebody explain what the "Cap Cost" is? - Saab NG900 & OG9-3 Bulletin Board - Saabnet.com
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Re: Could somebody explain what the "Cap Cost" is?
Posted by Erik [Email] (more from Erik) on Sun, 31 Mar 2002 13:11:06
In Reply to: Could somebody explain what the "Cap Cost" is?, Ryan [Profile/Gallery]
, Sun, 31 Mar 2002 10:17:00
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It is the "Capitalized Cost", or the amount the car is being leased for. Say you want a $32,000 car, and to achieve the lease rate you want, the car needs to be sold for $30,000. That means there needs to be a $2,000 cap cost reduction paid by you, the manufacturer, or the dealer.
The ad in the paper has to say who is paying this, normally is it in the up front costs paid by the buyer. Sometimes a national ad will show an example, and assume the dealer will lower the cost that much.
So essentially, it is down payment to reduce the cost of the lease. Hope this helps. Erik
posted by 12.64.6...
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