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.