Do I need to pay the disposition fee?

Ask the Hackrs
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1

Hi all,

If I sell my leased vehicle back to the dealer I leased it from, do I still need to pay the disposition fee?

Thanks

2

Need a few more details…

3

I’m nearing the end of my lease and have equity. I’m selling my vehicle back to the dealer and they will cut me a check. I’m not buying or leasing another vehicle at this time. I’m wondering how the disposition fee is handled in this scenario. Thank you.

4

Disposition fee is usually included in their buyout price.

5

Depends on the leasing company. You should see if it is charged on a payoff statement. Some do charge the fee (BMW and CCAP come to mind) others do not.

6

A lot of banks charge a separate buy out fee. It’s technically not the disposition fee.

7

I sold my leased BMW back in July 2021. BMWFS didn’t charge the $350 disposition fee when they closed our account.

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8

I’ve never see anyone charge a disposition fee after closing the account. What many banks do is include a buyout fee in the dealer payoff amount in lieu of a disposition fee.

9

I don’t think that’s the case for BMWFS at least when I sold my lease to Carmax last year. The payoff Carmax received was $130 higher than the one I saw from my BMWFS account but I received an extra $130 when BMWFS refund my MSD, so no disposition fee was charged.

10

Doesn’t matter much now since you can’t sell them to 3rd parties… but yah, I don’t know how BMWFS specifically handles this.

It’s also possible that your payoff included it as well.

11

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