[Josia]

Originally Posted by MBNUT1

Guys help me out here since I don't lease cars. How does cap cost relate to purchase price? This sounds like close to 20k off?

Taken from an online source:

Capitalization Cost (cap cost): The total price of the vehicle, which the lessor uses to calculate the amount that the customer will be paying. This is equivalent to the purchase price of a vehicle that's sold.

"When you and your dealer sit down and agree on a price for a leased car, this becomes the capitalized cost, or "cap cost." In a good lease deal, the cap cost will be significantly less than MSRP. Cap cost is sometimes called lease price.

"... It's in your best interest to always negotiate the lowest capitalized cost possible — a discount off the sticker price — just as if you were buying. The lower your cap cost, the lower your monthly lease payments will be.
Capitalized cost may also include certain fees, such as an acquisition fee (similar to mortgage "points" , or loan origination fee). Acquisition fees are typically not specified in lease contracts, so it's not readily apparent that you are paying it in your capitalized cost.

Hope that helps.