Lavern: Yes, I play the guitar generic womenra Another concept to make sure you understand before you ink any lease deals is the capitalized cost of the car. Your lease payment is determined by subtracting the vehicle's estimated worth at the end of the lease from the capitalized cost, which means the amount the leasing company paid for the car. As you discuss lease terms with a leasing company (usually a car dealership), you may hear the term "capital cost reduction" -- that just means your down payment, which is being subtracted from the capitalized cost as well.