A Guide to Car Leasing Terms (Part 3)


(Catch up with Part 1 and Part 2)

You never want to look like you don’t know what you’re talking about.

Especially when you’re negotiating a car lease.

In order to haggle confidently, you have to be familiar with certain terminology.

Here’s what you need to know.

Adjusted Capitalized Cost

Also known as “Net Capitalized Cost,” this amount represents the Capitalized Cost minus the Capitalized Reduction.

These numbers are used to determine the amount of your monthly payments.


This is the amount a new car’s worth drops over several years.

Typically, a vehicle’s worth will drop 50% in 3 years.

Because the car you’re leasing will be worth much less when you return it than it was when your lease began, you have to pay for this loss in value.

You should pay close attention to this number as it makes up a large portion of your payment.

It’s a good idea to keep in mind that vehicles will depreciate differently.

For example, a BMW will hold its value longer than a Ford.


The person who is leasing the car.


This is the term that describes the actual owner of the car – the one doing the leasing.

It could be a bank, an independent leasing company, or the financial division of a vehicle manufacturer.

You have the tools, you’re ready to lease

Along with Part 1 and Part 2, you now have the lingo to go into a car dealership and talk with anyone there about leasing a vehicle.

You’re sure to find friendly salespeople who’ll be happy to help you find exactly what you’re looking for.

See the folks at Serra Acura for help!

Categories: New Inventory