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Capitalized Cost ReductionA capitalized cost reduction is another term for a down payment that you make on a car purchase. This is the sum of money that you put down when you purchase the car. The balance of the cost of the car is then financed through your preferred car finance company.The more capitalized cost reduction you are able to put down, the cheaper your car will be. This is because you will be paying less interest over the life of your car loan. When you know that a new car purchase is going to be heading your way, start saving your money! Capitalized cost reduction is most commonly applied to a car lease. When you lease a car, you agree to pay a certain portion of money over the life of the lease. Whatever down payment you make reduces the amount of the capitalized cost over the life of the lease, and can bring down your monthly payment amount. More Glossary Terms Explained here |
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