Disposition Fee

A disposition fee is a standard charge assessed by leasing companies when a lessee returns a leased vehicle at the end of the contract. This fee covers the administrative and logistical costs of inspecting, cleaning, and reselling the car.

It usually ranges from $300 to $500, though luxury brands may charge more. Unlike mileage or wear-and-tear penalties, the disposition fee applies regardless of vehicle condition, unless the lessee chooses to purchase the car or lease another vehicle from the same company.

The fee ensures that the lessor recovers part of the cost of handling the vehicle’s resale process. Consumers should be aware of this charge when entering a lease, as it represents an additional end-of-term cost that cannot usually be waived.

Some leasing companies may offer to waive the disposition fee if the customer stays within their brand and initiates a new lease. Being prepared for this fee prevents surprises at lease-end and helps lessees budget effectively.