Capitalized Cost Reduction Clause Samples
The Capitalized Cost Reduction clause defines the amount paid upfront by a lessee to lower the total amount financed in a lease agreement. This reduction can come from cash payments, trade-in allowances, or manufacturer incentives, and it directly decreases the monthly lease payments by reducing the capitalized cost of the vehicle. The core function of this clause is to make leasing more affordable by allowing lessees to lower their ongoing financial obligations through an initial payment, thereby providing flexibility and potential savings.
Capitalized Cost Reduction. An Authorized User reserves the right to negotiate a reduction in the Vehicle Capitalized Cost calculated by the Lease Provider. OGS does not recommend that an Authorized User make a down payment on the Lease Vehicle as a means of Capitalized Cost Reduction.
Capitalized Cost Reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that reduces the gross capitalized cost. ........................................................................................................................................ - iii. Adjusted capitalized cost. The amount used in calculating your base monthly payment = iv. Residual value. The value of the Vehicle at the end of the Lease used in calculating your base monthly payment.................. - v.
Capitalized Cost Reduction. The amount of any net