Beware of Dealers That Markup the Lease Acquisition Fee
One of those things is the lease acquisition fee (also referred to as the Lease Inception fee or Origination Fee).
This is a fee charged by the leasing company to cover their initial administrative costs - or so they say. It's really just an additional profit source.
You don't get charged an acquisition fee when you take out a car loan, there's really no reason why you should be charged one for a lease.
These fees usually start at $350 and can be as high as $1,000 for some luxury vehicles.
If a car dealer is setting up the lease for you, you need to make sure they're not marking up the acquisition fee.
Some leasing companies allow dealers to mark up the fee a few hundred dollars and let them keep the difference.
The way to combat this is to comparison shop your lease with several different car dealers. Keep a close eye on this fee and see if they all charge the same thing - if so, it's not likely to be marked up.
Sometimes you can catch this extra fee and save yourself a good chunk of change.
Since you should be comparison shopping your lease anyway, It's certainly worth the extra effort to pay attention to this fee.
My Recommendation for Car ShoppersTrueCar No-Haggle, CarsDirect, and NADAGuides are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid