Lease Cash
Also known as: Lease Bonus, Lease Subvention Cash, Lease Incentive
Lease cash is a manufacturer incentive that reduces the capitalized cost of a lease, lowering the monthly payment. It is only available when leasing, not purchasing.
How Lease Cash Works
Lease cash works by reducing the amount you finance in your lease (the capitalized cost). For example, if a car has an MSRP of $40,000 and $2,000 in lease cash, your cap cost starts at $38,000 instead. This typically saves $55-60 per month on a 36-month lease. Lease cash is applied automatically by the leasing company — you do not receive the cash directly. It cannot be combined with purchase rebates in most cases.
Example
A 2026 Toyota RAV4 with $1,500 lease cash on a 36-month lease: The lease cash reduces the cap cost by $1,500, saving approximately $42/month ($1,500 / 36 months).
Frequently Asked Questions
What is lease cash on a car?
Lease cash is a manufacturer incentive that reduces the capitalized cost of a vehicle lease. It lowers your monthly payment by decreasing the amount being financed. Lease cash is only available on leases, not purchases, and is applied by the leasing company — not given to the buyer directly.
How does lease cash work?
Lease cash reduces your capitalized cost (the lease equivalent of a purchase price). If a vehicle has $2,000 in lease cash, that amount is subtracted from the cap cost before your monthly payment is calculated. On a 36-month lease, $2,000 in lease cash saves roughly $56 per month.
Can you negotiate lease cash?
No. Lease cash is set by the manufacturer and applied automatically to qualifying leases. However, you can negotiate the selling price (cap cost) separately — lease cash is applied on top of whatever price you negotiate with the dealer.
Is lease cash the same as a rebate?
No. Lease cash only applies to leases and reduces the capitalized cost. Purchase rebates only apply to cash or finance deals and reduce the selling price. In most cases, you cannot use both on the same vehicle — you must choose lease cash (if leasing) or the purchase rebate (if buying).
Related Lease Terms
The capitalized cost is the total amount being financed in a lease — the lease equivalent of a purchase price.
Money FactorA money factor is the interest rate on a car lease expressed as a small decimal.
Residual ValueResidual value is the projected worth of a leased vehicle at the end of the lease term, expressed as a percentage of MSRP.
See Real Lease Deals
Compare verified lease payments from real buyers. Know what a good deal looks like before you sign.