This often causes misunderstandings. Lease inception amount (same as “due at signing” or “drive out” cost) includes all charges that require up-front payment in cash, such as taxes, official fees, deposits, first month’s payment, and down payment. Notice that “down payment” (cap cost reduction) is only part of the total “due at signing” amount. The down payment amount is the only part that reduces  capitalized cost (amount financed), which reduces  monthly payment amount.

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