If you purchase the lease and then resell to a 3rd party dealer, you have to pay the taxes. There are minimal exceptions to this (CA, for example, will waive the taxes if you transfer within 10 days).
At the end of a lease you need to have your car inspected. That is done for free by the Bank (Usually) and it costs them $$$. That Disposition fee is usually assumed to be paying for this.
Hence this âfeeâ is not a profit center but more like a Regulated âShow the lessee why you need to charge this amount.â
I was not specifically referring to disposition fee, I am sure there are operational costs of completing the process. My point was that fees are used to alter consumerâs perception of value, just like promotions, discounts, rebates and any other conditional line items purely designed to improve bottom line. Not saying there is anything wrong with that as long as they are disclosed properly but this is the game nowadays.
WrongâŚI leased a Ford Edge a couple years agoâŚno disposition fee!
The disposition fee exists for two reasons:
-
Profit, plain and simple.
-
Encourage re-lease same brand at end of termâŚevery company I know of will waive the disposition fee if you lease another car from them.
I wonât say wrong, just because you found one that doesnât charge a Dispo fee?
Ah essence of the internet, it didnât happen to me so it shouldnât exist.
1 Like
Just because it wasnât itemized doesnât mean it wasnât paid for. It just was included in the overall cost. The inspection process and such still costs the bank money.
Goes with why XXX allowed me to sell to Carvana and why YYY doesnât!
Itâs Wrong of YYY. Not really XXXâs fault for allowing it to happen.
1 Like
Where did I say it shouldnât exist?
I just said not all companies charge a disposition feeâŚin fact, years ago none did!
Just like hotel resort fees, restaurant âhealth surchargesâ and airline baggage fees, these are all ways of generating additional income without raising prices, or showing the true (end) cost.
1 Like
Whoever said Ford didnât pay for it or it costs money?
Designing, manufacturing, marketing, and selling a car all costs moneyâŚI donât expect a breakdown for each individual line item.
So we agree that the amount was included in your lease. That means that no matter how you disposed of your lease, you got to pay for their inspection costs, etc, even if they never happened.
Seems like as a customer, itâs desirable to have it itemized with the exemptions of it not being charged when not applicable instead of having it automatically paid for.
I have no idea if it was included or not. Iâm not really interested in Fordâs bookkeeping and how they decide to allocate costs. Ford pays to inspect the car, that much we know. Maybe itâs included in the lease inception feeâŚwho knows? Who cares?
The only time I want to see a breakdown of my costs is if I have the option of declining or accepting it.
As much as I understand this being unfair, it blows my mind the amount of people who act like their leased vehicle is theirs to do as they please with, with no restrictions.
If you wanted to be able to sell it after a few years with no stipulations, you should have bought it.
8 Likes
Iâm sorta curious now, was it this site where it was discovered that you could SELL your leased product or was it like on redditt or something?
I donât even know if Iâd call it âunfair.â Not transparent, sure. But agree w/ your overall point. 
2 Likes