What are acquisition and disposition fees on a lease?

Where each fee shows up

The acquisition fee is usually due at signing or rolled into the cap cost. Rolling it in raises the payment. The amount is set by the finance company more often than by the store, but it still belongs on its own line so you can see it. A doc fee is separate. It is the store paperwork fee. Do not let the two get blended into one number called fees.

The disposition fee shows up only if you turn the car in. If you buy the car or if a dealer pays off the lease to put you in another one, the disposition fee is often waived. That is one reason a lease end decision should compare return, buyout, and replacement on the same day. Read the contract for the fee before you assume the end of the lease is only the last payment.

How the rest of the worksheet fits

The number people remember is the monthly payment. The number that decides the deal is the selling price of the exact car, the fees added on top, the miles allowed, and how much cash is due before you drive away. Those lines move independently. A lower payment can be a longer term, fewer miles, or a larger amount due at signing. Ask for each line in writing before you treat two quotes as the same car.

Southern California is a wide shop. Drivers in Los Angeles, Orange County, San Diego, the Inland Empire, and the South Bay often start with the store closest to home. Selection and the willingness to discount the selling price are not the same at every franchised store, even in the same week. We call more than one store so you can see the difference on one page instead of spending a Saturday in three showrooms.

Your ZIP code matters because California sales tax and registration follow where you register the car, not where the store sits. Tell us the ZIP you will use on the contract. If you are moving, say so. A quote built on the wrong ZIP looks fine until the finance office reprints it.

Miles are the other quiet line. The allowance is a yearly number times the term. Going over costs money at the end, and buying extra miles up front is not always cheaper than a higher allowance from the start. Be honest about commuting, school, and weekend trips. A pretty payment on a low mile allowance is the wrong car if you drive much more.

If you have a trade, keep it on its own line. The payoff or lease buyout is not the same as what a buyer will pay for the car. Equity helps the next deal. A shortfall has to be covered in cash or rolled forward, and rolling it forward raises what you finance. Send the payoff letter with a good through date so nobody guesses.

What to send the desk

For acquisition fees and disposition fees, send the year range, make, model, and trim, two or three colors you will accept, your ZIP code, how many miles you drive in a year, and whether you want to lease, finance, or pay cash. Add a trade with the payoff or the lease buyout and a good through date if you have one.

Green Light Auto Broker is an autobroker. All new cars arranged for sale are subject to price and availability from the selling franchised new car dealer.

Questions