A disposition fee, also known as a turn-in fee, is a charge that leasing companies impose when a leased vehicle is returned. The fee is typically several hundred dollars and covers the costs associated with reconditioning and cleaning the car. The purpose of the fee is to compensate the dealership for the costs associated with preparing the vehicle for resale. The disposition fee is included in the original lease contract, but many customers dont notice it because theyre more focused on things like monthly payments and down payments. The amount of the fee may vary depending on the vehicle type, dealer, city, state, or county you leased in, or the leasing company.
Its important to scrutinize every part of a lease before signing to avoid surprises like the disposition fee. However, if a disposition fee is included in your leasing agreement, you can avoid it by purchasing your vehicle or signing another lease. Some automakers captive lenders and third-party companies impose no disposition fee, and some are much higher than others. You might also be able to have the disposition fee waived if you take the easier route of replacing your leased vehicle with one from the same auto brand, company, or dealer.
