When you pay a disposition fee, and when you may not
| How the lease ends | Disposition fee? |
|---|---|
| You return the car at lease end | Usually yes |
| You return the car early | Usually yes, often as part of the early termination charge |
| You buy the car | Usually no, since the car isn't returned |
| A dealer pays off the lease | Usually no |
| You lease or buy another car from the same brand | Sometimes waived; ask |
Your contract is the final word. Look for "disposition fee" or "vehicle turn-in fee" in the section on ending the lease.
Other lease-end charges to plan for
- Extra-mile charges. A per-mile charge for every mile over your allowance, listed in your contract. The free calculator projects whether you're heading over.
- Excess wear and tear. Charges for damage beyond normal use, such as dents, worn tires, or interior damage. Your contract defines what counts.
- Unpaid payments and fees. Any payments due before the return, and late fees.
- Taxes. Some states tax certain lease-end charges.
Ways to reduce lease-end charges
- Ask about a pre-return inspection. Many leasing companies offer one, so you can fix small issues yourself, often for less.
- Compare selling with returning. If you're over your miles or have wear, selling the car to a dealer or buying it out can avoid these charges, though the car's value reflects them.
- Keep records. Get the odometer reading, inspection report, and return receipt in writing.