Which of the following is a type of down payment on the car you are leasing?
A) Money factor
B) Capitalized cost
C) Residual value
D) Purchase option
E) Capitalized cost reduction

Question

Quizplus · Accepted Answer

Capitalized cost reduction is a type of down payment made at the beginning of a car lease. It is a lump sum amount paid upfront that reduces the capitalized cost of the vehicle. This, in turn, lowers the monthly lease payments. The other options listed are components of a car lease, but do not refer to a down payment specifically.

Which of the Following Is a Type of Down Payment