Initial Lease Costs

Capitalized Cost Reduction
You may have the opportunity to lower your monthly lease payment by making a one-time payment to reduce the car's initial capitalized cost (the total cost of the vehicle) including any fees, insurance, maintenance contracts or options you request. However, a large down payment will negate one of the primary reasons for leasing—little or no initial cash outlay. As an alternative, you can trade in your current vehicle to defray the capitalized cost reduction amount.

Sales Taxes, Titles & License Fees
In most states, when buying a car with a loan or cash, sales tax must be paid at the time of purchase. In other states, you are permitted to include taxes in the loan amount.
Tax, title and license fees are your responsibility, just as they are with a traditional loan. These fees can be paid up front, or included in the capitalized cost of the leased vehicle and amortized over the life of the lease.

Insurance
Lease Compute provides you with all insurance requirements when entering into a leasing contract. Insurance may be purchased through the agent of your choice.
GAP (Guaranteed Auto Protection) insurance may also be offered to you with a lease. Should you have an accident and the car is totaled, GAP insurance covers the difference between what is owed on the lease contract and the amount that the primary insurer will cover. This is most important in the early years of a lease, when the difference is greatest. GAP insurance is relatively inexpensive, considering the peace of mind it can provide.