Car Lease Disposition Fee


After being ripped off by a sleazy car salesmanĀ in Houston with a balloon payment many years ago, I was very vigilant when we chose to lease a Toyota Camry. We decided to lease because everybody knows that when you purchase a car, it loses 20% of its value when you drive it off the dealer’s lot.

We managed to negotiate for a 200 dollar a month payment with $2300 payment due at lease signing. We have the option to purchase the LE Camry at the expiration of the 36 month lease.

There is another charge, called the Disposition Fee, due at lease expiration if we choose not purchase the Camry. In our case, the disposition fee is only $350 which is fair as the Toyota dealership would have to get the car ready either to sale, release, or rent if we elect not to purchase the 2012 Camry. The only gripe I have is that the Toyota Finance representative did not mention the Disposition fee when we were closing on the car….very much like the lowlife Sterling McCall Salesman in Houston who never uttered a word about the balloon payment he nailed me with! At least the Disposition Fee was only a $350 surprise compared to the $6000 balloon payment the scummy Sterling McCall rep failed to mention!

Our total cost of purchasing versus leasing is roughly the same. The advantage of leasing is that you do not have to come up with a large down payment and your monthly payments are much smaller. Also you can lease another brand new car at lease expiration. I just do not see the advantage of car ownership.

One disadvantage of leasing is that if you do not bring the car back in good condition, you will be billed for damages or missing items.

Don't Get SCREWED by Car Lease Disposition Fee
Don’t Get SCREWED by Car Lease Disposition Fee

3 comments on “Car Lease Disposition FeeAdd yours →

  1. Don’t feel too bad. I’ve leased about 13 or 14 different vehicles and the same thing happened to me. Disposition fees seem to be one of the few tricks left in the book – other than that, leasing is the safest way to finance a car in my opinion.

    The whole purpose behind that disposition fee is so the dealer can get your business on the next car. I’ll never do it again. Negotiate and say, no..

  2. We also got lied to about a disposition fee by a Sterling McCall Salesman in Houston, tx.
    Both Alex Delgado and Wayne Young were misleading and deceptive and never gave us a comprehensible explanation of the disposition fee. Thanks to Alonzo Allen for finally getting it all straightened out!

    1. A salesman at Sterling McCall never told us about Disposition Fee. Neither did any other member of their finance staff or sales supervisors. We had to either pay $400 to move on or stick with the Tundra we had leased 30 months earlier. Car salesman sleep like babies after they lie all day long.

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