What Is a Lease Disposition Fee & Do I Have to Pay It?

What’s a Disposition Price?

A disposition fee is a final fee payable at the enA disposition price is utilized to the leasing of a car. You see, if you end up leasing a car, you’re successfully “renting” it from the dealership. While you return the car to the dealership, they should spend the time and the cash to prep the car for resale.

A disposition price is a closing price payable on the finish of an auto lease if the car just isn’t bought. The price is used to cowl the price of inspecting, refurbishing, cleansing, and transporting the car. This price is listed on the leasing contract at signing, and it’s due when the car is returned to the dealership.

Different Lease Charges

To get the total image of a car lease’s negotiable fees, it may possibly assist to know the opposite charges which can be constructed into your lease.

Listed here are a few of the most typical leasing charges:

  • Safety deposit:​ Some leases require a deposit to cowl any injury to the car whereas it is in your care.
  • Down fee:​ Generally leases require a down fee within the hundreds of {dollars}. Attempt to keep away from paying this. You received’t get this a reimbursement if the automotive is totaled or stolen.
  • First month’s fee:​ Along with a down fee and safety deposit, that is upfront cash you pay whereas signing the lease.
  • Acquisition charges:​ That is mainly an administrative price to cowl the leasing firm’s value of organising the lease. It would doubtless be within the tons of of {dollars}. This price will be rolled into your month-to-month funds.
  • Taxes and licensing charges:​ Identical to whenever you’re shopping for a car, as a lessee, you’re answerable for paying all of the taxes and licensing charges charged by state and native governments.


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Alternative keys

Each new automotive comes with at the least two keys. Nevertheless, as time goes on, you’re certain to lose or misplace certainly one of them, however there’s no want to fret. In line with Janessian, you should buy a alternative key off of eBay after which name up a locksmith and have them minimize a program to your automotive for you. The price of utilizing this methodology is often a fraction of what the lease firm would cost you for one.

RELATED: Can You Lease an RV?

Handing over the keys | Burak Fatsa/Getty Images
Handing over the keys | Burak Fatsa/Getty Photographs

Do I Need to Pay the Disposition Price?

When you signed the lease with the disposition price, then you may be obliged to pay it should you determine to not buy the car. Subsequently, it is vital that you simply negotiate the disposition price earlier than you signal the lease.

Because the disposition price tends to be a small quantity relative to the overall lease value, you might be able to negotiate that price down.

Decreasing Finish-of-Lease Charges

The very best factor you are able to do to barter the end-of-lease charges in your leased automotive is to maintain these charges as little as potential. Be sure you totally perceive the leasing firm’s definition of regular put on and get that in writing should you can. Your return inspection will embrace logging any injury to the outside, inside, tires and equipment.

Additionally be sure to maintain a detailed watch in your leased car’s mileage. If you recognize you’ll be pushing it, it’s greatest to say that on the entrance finish and probably negotiate a high-mileage lease. When you’re nearing the restrict, calculate the per-mile cost and think about whether or not it is higher financially to buy the car whenever you attain the tip of the time period.


Sure. There are a pair methods to keep away from this price. For one, you may buy the car for the residual value. Because you’re shopping for it proper then and there, there might be no reselling prices, and the price must be waived. The opposite approach is to take out one other lease from the identical dealership, a probable however not assured technique to keep away from the price. The leasing firm is earning profits off you leasing the automotive, so retaining you as a unbroken lease buyer is of their greatest curiosity.

How a lot is a lease disposition price?

A lease deposition price usually runs a number of hundred {dollars} or extra. The quantity could fluctuate relying on the car kind, vendor, metropolis, state or county you leased in, or the leasing firm. It’s greatest to seek advice from your lease settlement, which ought to disclose the quantity of the disposition price.

The best way to Keep away from Paying Charges

To keep away from paying automotive lease disposition charges, in addition to different charges, be strategic about negotiating your lease agreement to get one of the best deal you may. Suggestions that can assist you achieve this embrace the next:
  • Perceive leasing terminology earlier than you start to barter.
  • Ask concerning the cap value (the worth of the car).
  • Be clear on mileage limitations and overage charges (in addition to another charges).
  • Examine rates of interest and APRs (in addition to potential charges) from a number of sellers.
  • Let the leasing firm (the “lessor”) know should you plan to purchase the automotive.
Armed with this data, you may then negotiate the lease, together with its charges, to attempt to scale back what you’ll must pay. The lessor doesn’t need to say “sure” to all the things you need, however negotiating with a number of of them will doubtless get you a greater deal, maybe one that may be a non-disposition price lease.If in case you have already signed your lease, then it’s necessary to be sure to perceive all the charges for which you may be liable. Then do what you may to keep away from incurring them, whether or not it’s retaining your automotive clear and in good situation or ensuring you don’t exceed your mileage allotment.

Is there a technique to get a lease disposition price waived?

 There are usually two methods to keep away from paying a disposition price. Two frequent methods are:

  1. Shopping for the automotive: chances are you’ll keep away from the lease disposition price if you buy the automotive on the finish of your lease (in case your lease features a buy possibility). When you purchase the automotive on the finish of your contract, your leasing firm normally received’t cost a deposition price, as they don’t have to arrange the automotive for resale. Nonetheless, your leasing firm could cost a purchase order possibility price in reference to buying the automotive. 
  2. Leasing or shopping for one other car:  When you determine to lease or purchase one other car of the identical model, the disposition price below your present lease could also be waived as a part of a loyalty profit which may be provided.  Otherwise you might be able to negotiate to have the price waived.  

Dents and scratches

Scratches and dents may look like the hardest half relating to delivering your lease as a result of your automotive could have acquired numerous them throughout the time that you simply had it. To not fear, as Janessian states in his video that “two-inches within the regular guideline” relating to the leasing firm charging you for scratches and dents. In case your automotive has of these imperfections which can be lower than two inches in size, then the leasing firm will almost definitely waive it off.

Nevertheless, should you do have numerous scratches and dents which can be bigger than two inches, then Janessian recommends that you simply get the dents repaired by way of paintless dent elimination as most of these corporations will cost you lower than the leasing firm. And for the scratches, he recommends that you simply choose up a bottle of “Goo Gone” at your native auto elements retailer and take a look at buffing them out your self. Simply make sure that to get the one which’s suitable with automotive clear coats.

RELATED: How to Get Out of a Car Lease Early

Different auto leasing charges to look out for

A disposition price isn’t the one cost you may count on to face as you’re leasing a automotive. Look out for different charges, together with: 

  • Extreme mileage cost: When you go over the mileage you’re allotted in your lease, you’ll need to pay this penalty. 
  • Put on-and-tear cost: In case your automotive has some main dings, scratches or stains, you may face this cost based mostly on the price of the repairs. 
  • Early termination cost: When you return your lease earlier than your time period expires, you may find yourself paying this price. 
  • Buy possibility cost: Some dealerships could cost you a price should you determine to purchase the automotive as soon as your lease ends. 

Not all charges are charged or required with a lease settlement. It’s necessary to overview your contract and ask any questions earlier than signing. 

Suggestions for a Easy Finish-of-Lease Course of

Your Last Cost

Because the final fee in your leased Subaru is due one month earlier than the precise lease finish date, it is necessary that you simply bear in mind to cancel any recurring funds you could have set as much as keep away from overpaying your lease account.

If in case you have chosen to return your Subaru and buy or lease a brand new car, there might be a payoff request submitted by the retailer to obtain a whole payoff together with all account credit. This selection is not going to generate a refund of an over fee as all credit might be to incorporate within the new contract settlement OR an finish of time period invoice for mileage, put on and use or disposition charges. If in case you have chosen to return your car, any over fee shouldn’t be included in a payoff quoted to the retailer AND you’ll obtain an finish of time period invoice for mileage, put on and use of disposition charges. If in case you have a credit score in your account on the time of flip in, please inform the retailer you count on these funds to be returned. Be sure you contact us together with your return/flip in data.

Early Termination

An early termination happens should you return your lease 31 or extra days earlier than your scheduled maturity finish date. When you select to return your car early, chances are you’ll incur early termination fees. Notice: should you finish your lease as a part of a trade-in, the dealership will purchase out your lease and this isn’t thought of an early termination.

Finish-of-Time period Billing

Primarily based on the phrases of your lease contract, your lease-end invoice could embrace fees for excellent funds, taxes, extra mileage and extra put on and use. There may additionally be a $300 disposition price. Please overview your contract rigorously so you may know what fees chances are you’ll be billed for on the finish of your lease. We is not going to cost you any charges whenever you flip in your car.

Extending Your Lease

When you’re within the closing 30 days of your lease, chances are you’ll request to increase your lease a most of 5 months. Federal rules stop a lease account from going past the outlined extension interval. When you exceed the lease extension restrict, your car could also be repossessed, chances are you’ll incur further end-of-lease charges and your credit score could also be negatively impacted. Our acceptance of lease funds after the lease maturity scheduled finish date doesn’t provide the proper to maintain the car and it doesn’t imply that we agree to increase the lease time period. If in case you have an accredited extension in your lease you continue to have the identical lease finish choices, as detailed above, on the finish of your extension interval. Please contact Subaru Motors Finance at 1-800-644-1941 Monday by Friday, from 9 AM to six PM ET to request and obtain approval for an extension.

Odometer Assertion

While you return your leased car, you may be required to finish and signal an odometer assertion. Odometer Statement (PDF) »