Lease Disposition Fee: What It Is and When You Pay It
Educational explainer. U.S.-focused. Lease contracts vary—always read your actual agreement.
A disposition fee is a lease-end charge some lenders apply when you return the vehicle. It’s basically an administrative / remarketing fee for processing the return and resale.
Key point: Some contracts waive the disposition fee if you lease or buy another vehicle from the same brand/finance company—others do not.
What it covers (in plain English)
Processing the return, paperwork, and costs associated with getting the vehicle ready for auction or resale.
When it applies
- Often applies when you return the vehicle and walk away
- May be waived if you buy the vehicle or start a new lease
How to avoid surprises
Look for “disposition fee” in the contract and ask if it’s waivable. Put it into your lease comparison math.
FAQ
Is the disposition fee always charged?
No. It depends on the contract and sometimes on whether you lease/buy again.
Is it negotiable?
Sometimes. Dealers may offer incentives that effectively offset it, but not always.