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A commonly sited benefit of leasing is absence of down payment. However, today most leases require a "capital cost reduc

Posted: Thu Jul 21, 2022 8:53 pm
by answerhappygod
A commonly sited benefit of leasing is absence of down payment. However, today most leases require a "capital cost reduction" which is the down payment that lowers the potential depreciation and therefore your monthly lease payments. You may be able to negotiate a lower capital cost reduction or find a lease that doesn't require one. The lease payment calculation is based on four variables. Which one of the following:

A. Capitalized cost
B. Forecast residual value
C. Money factor
D. Lease date