What is a disposition fee?

A disposition fee is a fee charged by a leasing company when a customer returns a leased vehicle at the end of the lease term. This fee is meant to cover the costs associated with processing the return of the vehicle, inspecting it for any damages or excessive wear and tear, and preparing it for resale or auction.

The amount of the disposition fee can vary depending on the leasing company and the terms of the lease agreement. It is typically disclosed in the lease contract and can range from $300 to $500 or more.

It is important for customers to be aware of the disposition fee before signing a lease agreement, as it is a cost that they will incur at the end of the lease term. Some leasing companies may waive the fee if the customer decides to purchase or lease another vehicle from them, so it is worth asking about this possibility before returning the vehicle.

Overall, a disposition fee is a standard cost associated with leasing a vehicle and should be factored into the overall cost of the lease when comparing leasing options.