Acquisition Fee
Also known as: Bank Fee, Lease Initiation Fee, Administrative Fee
An acquisition fee is a one-time charge by the leasing company to originate the lease, typically $595-$1,095. It is usually rolled into the capitalized cost rather than paid upfront.
How Acquisition Fee Works
The acquisition fee is charged by the finance company (not the dealer) to set up the lease. It covers credit checks, paperwork, and administrative costs. Most buyers roll this fee into the lease (increasing the cap cost slightly) rather than paying it out of pocket. The acquisition fee is set by the finance company and is generally NOT negotiable, though some luxury brands have higher fees.
Example
Toyota Financial Services charges a $650 acquisition fee. BMW Financial charges $925. If rolled into a 36-month lease, a $650 fee adds about $18/month to the payment.
Frequently Asked Questions
Is the acquisition fee negotiable?
The acquisition fee is set by the manufacturer's finance company and is generally not negotiable. However, some dealers may offer to cover or reduce it as part of the deal negotiation. It's worth asking.
Should I pay the acquisition fee upfront or roll it in?
Most buyers roll the acquisition fee into the lease, which increases the monthly payment slightly but avoids a larger upfront cost. Paying it upfront saves a small amount on the finance charge but the difference is usually minimal.
Related Lease Terms
A disposition fee is a charge (typically $300-$500) assessed by the leasing company when you return a leased vehicle at the end of the lease term.
Capitalized CostThe capitalized cost is the total amount being financed in a lease — the lease equivalent of a purchase price.
Due at SigningDue at signing (DAS) is the total upfront payment required when signing a car lease.
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