Car-buying glossary · Leasing

Disposition fee

A fee charged at the end of a lease when you return the car instead of buying it, to cover cleaning, inspection and resale. It is set in your lease contract, often a few hundred dollars, and is frequently waived if you lease or buy another car from the same brand.

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What “Disposition fee” means

The disposition fee is written into your lease contract on day one. You pay it only if you return the car at the end. Amounts are commonly in the $300 to $600 range, depending on the leasing company.

It usually isn’t charged if you buy the car at lease end, and many brands waive it if you lease or finance another vehicle through them.

How it shows up at the dealership

At turn-in, the disposition fee arrives on the same bill as any excess wear and excess mileage charges. Dealers use the waiver as a loyalty tool: “Lease again with us and we’ll waive it.”

If you buy the car at lease end, or sell it to a dealer that pays off the lease, the disposition fee usually doesn’t apply. Check your contract’s wording before you decide.

Worked example · illustrative numbers, not a quote

A lease-end bill

Disposition fee$395
Excess miles: 2,000 × $0.25$500
Worn tire (below tread limit)$250
Total due at return$1,145

Illustrative. Your contract states the actual fee and per-mile rate.

What to do

  • Find the disposition fee in your lease contract now so it doesn’t surprise you.
  • If you’re leasing again with the same brand, ask for the waiver in writing.
  • Compare returning vs buying vs selling the car; if you have equity, the fee may not apply.

What to say

“If I lease another car from you, will the disposition fee be waived? Please note that on the paperwork.”

Also called: turn-in fee, lease return fee.

Read next

Lease ending? Return it, buy it, or cash in the equity

If your leased car is worth more than its buyout, that difference is your money. How to find out, when buying it makes sense, and how to keep the equity instead of handing it over. Hub guide · free preview

Lease turn-in inspection: avoid surprise excess-wear charges

Excess-wear bills can top $1,000 after you’ve handed back the keys. What lessors charge for, how the free pre-inspection works, and when fixing it yourself costs less. Hub guide · free preview

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