Gross Capitalized Cost

Gross Capitalized Cost – Gross capitalized cost is calculated by an individual when leasing a car.  It is the value of the automobile that has been mutually agreed upon by both the purchaser and the car salesman.  Gross capitalized cost includes not only the base price for the lease period but also any costs stemming from insuring the car, agreements concerning repair and damage and all other necessities that have been agreed upon prior to the sale.  This figure is not fixed and can be negotiated between the buyer and seller.  The main objective on the buyer’s part is to bargain the gross capitalized cost to the lowest possible number.