Disposition Fee
Also known as: Lease Return Fee, Turn-In Fee, End-of-Lease Fee
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. It covers the cost of inspecting and reselling the vehicle.
How Disposition Fee Works
The disposition fee is specified in your lease contract and is due when you turn in the vehicle. Most manufacturers charge $300-$500. Some waive the fee if you lease or purchase another vehicle from the same brand. The disposition fee is NOT negotiable after signing — it's a contract term. However, some dealers will cover it as part of a new lease deal. This fee is separate from any excess mileage or wear-and-tear charges.
Example
BMW charges a $350 disposition fee. Toyota Financial charges $350. Mercedes-Benz charges $595. If you lease another vehicle from the same brand, many will waive this fee.
Frequently Asked Questions
How much is a typical disposition fee?
Most disposition fees range from $300 to $500. Luxury brands tend to charge more: BMW charges $350, Mercedes-Benz charges $595, Lexus charges $350. Some manufacturers waive the fee if you lease or buy another vehicle from the same brand.
Can you avoid paying a disposition fee?
You can avoid the disposition fee by: (1) purchasing the vehicle at lease end instead of returning it, (2) leasing or buying another vehicle from the same manufacturer (many offer loyalty waivers), or (3) negotiating with the dealer to cover it as part of a new deal.
When do you pay the disposition fee?
The disposition fee is due when you return the vehicle at the end of the lease. It is typically billed separately by the leasing company after the vehicle is inspected. You do not pay it upfront.
Related Lease Terms
An acquisition fee is a one-time charge by the leasing company to originate the lease, typically $595-$1,095.
Residual ValueResidual value is the projected worth of a leased vehicle at the end of the lease term, expressed as a percentage of MSRP.
Excess Mileage ChargeAn excess mileage charge is a per-mile fee ($0.
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