Which of the following is a type of down payment that lowers the potential depreciation and therefore your monthly lease payments on a leased car?
A) Money factor
B) Property depreciation cost
C) Initial residual value
D) Purchase option
E) Capital cost reduction

Question

Quizplus · Accepted Answer

Capital cost reduction is a type of down payment made at the beginning of a lease that reduces the overall capitalized cost of the leased vehicle. This, in turn, lowers the potential depreciation and therefore the monthly lease payments.

Which of the Following Is a Type of Down Payment