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What is a lease disposition fee?
My friend leased a car and is complaining about his lease disposition fee. I’m interested in leasing a car too, but I don’t know what that is. What is a lease disposition fee?
Cassandra Hamilton · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Leasing a car
can be a great way to experience a new car without the commitment of a car loan. But, there are a lot of new terms to learn when it comes to leasing a car, and the lease disposition fee is a big part of returning your car
.The lease disposition fee is the fee you pay when you return your leased car. This fee covers the costs that arise when you turn in your car, like preparing it to sell. You can avoid your lease disposition fee by:
- buying your car. If you decide to purchase the car you’ve been leasing, the dealership may waive the disposition fee since they won’t have to get the car ready for the sales floor.
- buying or leasing another car. This isn’t guaranteed, but the disposition fee might be waived as part of a loyalty program offered by the dealership.
- negotiating. You’ll have to negotiate not paying a disposition fee before you sign the lease, but it is possible.
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- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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