Complete Guide
The "Disposition Fee": Can You Waive It?
Most leases charge a $350-$595 fee just to return the car. Here are 3 ways to get it waived.
Key Takeaways
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disputed charges that exceed manufacturer standards
What is a Disposition Fee?
This is a flat fee (typically $350-$595) charged at the end of a lease to cover the cost of cleaning and auctioning the car. It is listed in your original contract.
3 Ways to Waive It
- Loyalty Waiver: Most brands (BMW, Toyota, Honda, etc.) waive this fee if you lease or buy another vehicle from the same brand within 30-90 days.
- Dealer Buyout: If you sell/trade the car to a dealership (instead of just "grounding" it), the dealer pays the payoff amount, which usually does not include the disposition fee.
- Negotiation: If you are walking away but have a clean inspection, call the finance company. Ask if they will waive the fee as a goodwill gesture for your on-time payment history.
Frequently Asked Questions
Does the disposition fee apply if I buy the car?
No. If you exercise your buyout option to purchase the lease yourself, the disposition fee is waived (because the bank doesn't have to dispose of the car). However, there may be a small "Purchase Option Fee" instead.
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