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The capitalized cost is not a rational formula amount. The capitalized cost can include anything the dealer would like to put in. They are such as, acquisition fees, that is like a closing cost for the loan, in a way this lease, or similar to the origination fee, points, in a mortgage loan. This capitalized cost can also include the balance remaining on the loan of your trade-in car.
You need to ask the dealer to itemize the capitalized cost and show you the details they included and how they derived the amount.
Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP