what does it mean to capitalize costs
Definition. The capitalized cost is a key figure in your lease. It's the amount of the car's value you are actually financing during the term of the lease. As a result, it is one of the main drivers of your monthly lease payment, along with your interest rate. The capitalized cost is also called the cap cost.
Capitalized Cost â Cap Cost. For a full discussion of how Capitalized Cost is used in calculating monthly car lease payments and costs, see Lease Payment Formula Explained. The term, capitalized cost, or â cap cost â, related to car leasing, refers to the amount that is being financed with a lease. The lower the capitalized cost, the lower the monthly lease payment. Price of vehicle.