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      04-07-2015, 03:47 PM   #138
Powaup
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Drives: 2021 Supra 3.0 (Past: 2015 M23
Join Date: Aug 2012
Location: San Francisco, CA

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2015 BMW M4  [10.00]
Quote:
Originally Posted by OneRib View Post
Cap cost reduction- This is any money used to reduce the total cap cost. It can be incentives, trade in, or cash. This is generally something to avoid because you lose that money if you total the car. Its also hard to recoup if you want to transfer the lease to someone else (no one wants to give you cash you spent to get your payment low). If a lower monthly payment is needed, makes you feel better, or gets it past the gatekeeper (aka spouse) then you are better of using MSDs (explained below) or taking the money and putting into a separate account. You then transfer a small amount over every month to make the payment lower.

I think that this should be clarified, lots and lots of debate around cap cost reduction
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