Calling Los Angeles-based car shoppers: Have you recently traded in (or plan to trade in) a car with negative equity (i.e. the amount you owe on your auto loan is greater than the car's value)? A reporter would like to speak with you; please reach out to PR@Edmunds.com by 11/6 for details.

Capital cost reduction on a leased Cla 250

kylabg1kylabg1 Member Posts: 2
edited June 2016 in Mercedes-Benz
I put 10k down as capital cost reduction on my 2016 cla 250. When I look at what I will have paid at the end of my lease and then add that to the residual value listed I don't see any accounting for the 10k I put down. If I choose to purchase my lease, I will be paying 10k over the sticker price. Can that be right? I thought it would take 10k off the risidual

Well.. you pay finance charges within your lease payment, as well. Making a $10K CAP cost reduction reduces the CAP cost, and the depreciation you pay over the life of the lease. It doesn't reduce the residual, which is a constant.

Best Answer

Sign In or Register to comment.