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User_gary Posted 15 years ago
Vocabulary
Adjusted capitalized cost
The residual value of a leased vehicle is the lessor's estimate of what the vehicle will be worth at the end of your lease term. Sometimes referred to as the lease-end value, the residual value is an important number to know for a couple of reasons. Your monthly lease payment is based on the difference between the adjusted capitalized cost and the residual value of the vehicle. For that reason, knowing your residual value is essential in determining your repayment liability. In addition, the residual value represents the minimum you should expect to pay if you elect to exercise your purchase option at lease end (in a closed end lease). In an open-end lease, the residual value takes on even greater importance. An open end lease involves an additional payment, the amount of which will depend on the value of the property (residual value) when it is returned. also called finance lease.
Please explain to me what "adjusted capitalized cost" means here.
Source : http://www.carloanwiki.com/What_is_residual_value%3F
Please explain to me what "adjusted capitalized cost" means here.
Source : http://www.carloanwiki.com/What_is_residual_value%3F
Top answer
Adjusted Cap Cost (car leasing term): The amount capitalized at the beginning of the lease, equal to the gross capitalized cost minus the capitalized cost reduction. This amount is sometimes referred to as the net cap cost.
- Adjusted Cap Cost (car leasing term): The amount capitalized at the beginning of the lease, equal to the gross capitalized cost minus the capitalized cost reduction.
- This amount is sometimes referred to as the net cap cost.
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1 Answers
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Adjusted Cap Cost (car leasing term):
The amount capitalized at the beginning of the lease, equal to the gross capitalized cost minus the capitalized cost reduction. This amount is sometimes referred to as the net cap cost.
The amount capitalized at the beginning of the lease, equal to the gross capitalized cost minus the capitalized cost reduction. This amount is sometimes referred to as the net cap cost.
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