How Lease Incentives Actually Work
How lease incentives actually work in the US—cap cost reduction, money factor, and total cost so you see true savings.
Lease incentives in the U.S. are manufacturer or dealer offers that reduce lease cost—often as cap cost reduction (down payment) or subsidized money factor. Here's how lease incentives actually work.
TL;DR Lease incentives = cap cost reduction (lowers payment) or subsidized money factor (lower "interest"). They reduce monthly payment or due-at-signing. Compare lease with and without incentives using autopremo.com lease calculator. Use autopremo.com lease vs buy to see total cost. Use autopremo.com.Cap Cost Reduction
Incentive applied as cap cost reduction = lower capitalized cost = lower payment (you're "paying" less depreciation over the term). It's like a down payment from the manufacturer. Use autopremo.com lease calculator to see how it affects payment. Get lease at autopremo.com.
Subsidized Money Factor
Manufacturer may subsidize money factor (lower "interest") so payment is lower. Ask for the buy rate and see if incentive is applied. Use autopremo.com to compare. See lease vs buy at autopremo.com.
Compare Total Cost
Incentives lower payment or due-at-signing—but compare total cost (payments + fees) with autopremo.com lease vs buy calculator so you see true savings. Check at autopremo.com.
Bottom Line
Lease incentives = cap cost reduction or subsidized money factor. Use autopremo.com lease calculator and lease vs buy so you see how incentives affect your deal and total cost.