What fees should I expect when I lease?

In addition to the typical sales tax, registration, and license fees, there is one fee that all Lessee's pay when they begin a lease. It is called an "acquisition fee" or sometimes referred to as a "bank fee."  This fee is charged by the Leasing Company to the dealership which passes it along to the Lessee. Unfortunately this fee is standard with every lease and is not negotiable. Typically it ranges from $500 to $750.

At the end of a lease there is a fee that all Lessee's must pay if they return their vehicle to the leasing company (the alternatives would be if the vehicle is totalled, stolen, purchased, or traded).  This fee is in addition to any excess mileage or damage charges.  Upon the termination of a lease, the Leasing Company will charge a "Disposition Fee." This fee typically ranges between $250 and $400 and is used to transport the vehicle to auction and pay for all fees associated with its sale.  Like the Acquisition Fee, it is non-negotiable and is a part of your Lease Installment Agreement.

When shopping for a lease, the Acquisition Fee will be part of the "Total Due at Inception" that the dealer quotes in his advertisements or when shopping. This amount is the total you must bring with you when you sign for the lease. In the event that you are choosing a "Sign and Drive Lease" where you pay nothing out of pocket (hence the Total Due at Inception is zero), the Acquisition Fee is being added to the Capitalized Cost of the Lease.  Remember, it's in there and will be disclosed on the Lease Installment Agreement, but it is not included in the advertised fees.  Both fees are charged by the Leasing Company and not the dealership - thus, the dealership is powerless to negotiate or remove these fees.