Acquisition Fee

An acquisition fee, sometimes called a bank or lease initiation fee, is a mandatory charge assessed by the leasing company at the start of a vehicle lease. This fee covers administrative costs associated with processing the lease, including credit checks, contract preparation, and setting up the account.

Acquisition fees are typically non-negotiable and can range from $300 to $900 depending on the leasing company and vehicle type. In some cases, the fee is paid upfront at signing, while in others it may be rolled into the monthly lease payments, increasing overall costs.

Although consumers often focus on monthly payments, acquisition fees significantly affect the total lease expense and should be considered when comparing deals. Understanding this fee is critical, as it is unavoidable in most leases.

Unlike down payments, acquisition fees do not reduce the capitalized cost of the vehicle or monthly payments. Instead, they serve solely as a cost of initiating the lease contract.

Transparency in disclosing acquisition fees is required by law, but consumers should still review contracts carefully to ensure there are no hidden add-ons or inflated charges.