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What Is Lease Cash?
Lease cash is a special incentive offered by a manufacturer or lender to reduce the cost of leasing a vehicle. This bonus is applied directly to the lease deal, usually as a capitalized cost reduction that lowers your monthly payments or the amount due at signing.
Unlike rebates for car purchases, lease cash is specific to lease agreements.
Lease Cash Meaning in Car Leasing
In car leasing, lease cash functions as a discount provided by the automaker or financial arm (like Honda Financial or GM Financial). It’s not money handed to you, but a financial credit applied within the lease structure.
Lease cash typically:
- Lowers the capitalized cost (vehicle price used in the lease calculation)
- Reduces the amount due at signing
- May be used alongside other promotions (loyalty offers, conquest cash)
- Is only available on select models and terms
- Can change monthly depending on market conditions
Important: Lease cash is not guaranteed and can vary by region, credit tier, and vehicle availability.
How Lease Cash Works
Here’s how lease cash is typically applied in a lease:
- The dealership receives a lease cash incentive from the manufacturer for a specific model.
- They pass this on to the lessee by reducing the vehicle’s capitalized cost.
This results in either:
- Lower monthly payments
- Less due at signing
- Or both
Example: If a car has $2,000 in lease cash, the dealership might subtract that from the selling price before calculating your lease payment.
Lease Cash in Car Leasing Agreements
You won’t usually see “lease cash” spelled out in your lease contract, but it plays a key role in shaping the lease offer you receive.
Here’s where it typically appears:
- Deal sheet or lease worksheet: Lists lease cash as a deduction from the selling price
- Promotional ads: Manufacturers may advertise it as “$1,500 lease cash” or “lease bonus cash”
- Quote breakdowns: Online or in-store lease quotes may list incentives, including lease cash
Always ask if lease cash is available on the model you’re interested in. It can significantly improve your lease terms.
Who Qualifies for Lease Cash Incentives?
Not every customer qualifies for lease cash automatically. Lease cash is often tied to specific eligibility criteria, which can include:
- Vehicle model and trim: Only certain configurations may qualify
- Lease term length: Typically 24 to 36 months; shorter or longer leases may be excluded
- Approved credit: Some offers are valid only for customers in Tier 1 or Tier 2 credit brackets
- Location: Lease cash incentives vary by region and ZIP code
- Lender requirements: Offers may apply only if you lease through a specific captive finance company like Hyundai Motor Finance or GM Financial
In some cases, lease cash is stackable with other promotions like loyalty bonuses or military rebates. However, many offers are time-sensitive and change month to month, so it’s important to ask your dealer or leasing advisor to apply the best offer for your situation.
Pro tip: You can find lease cash incentives on manufacturer websites or by requesting a lease breakdown from the dealer.
Related Terms for Lease Cash
- Prev Term: lease assignment
- Next Term: lease disposition fee
- Related Terms: capitalized cost, money factor, due at signing