More Information about the Disposition Fee

If you return the vehicle, you may be charged a disposition fee to defray the lessor's expenses of preparing and selling the vehicle. These expenses may include vehicle cleaning and reconditioning costs, vehicle inspection fees, transportation costs, storage fees, auction fees, administrative costs, vehicle depreciation, and the lessor's funding costs until the vehicle is finally sold.

Not all lessors charge a disposition fee. Lessors not charging a disposition fee may offset their disposition expenses with a higher base monthly payment. In this case, you will pay for these disposition expenses over the lease term as part of your monthly payments. If you return the vehicle, the disposition expenses you will have paid monthly may total less than the disposition fee you might have owed at lease-end. If you purchase or trade the vehicle, however, you will have paid disposition costs as part of the monthly payment even though the lessor does not incur these costs at lease-end.