Stupid noob question...

These "admin" fees have nothing to do with the lease monthly payment calculation if they are due up front. Am I correct?

Dealer Doc Fee
Registration Fees
Title Fees
Security Deposit
Acquisition Fee
(Also disposition fee due at lease end)

How can I tell if my dealer is being honest with these fees? He can increase his profit by marking them up here and there. Which of these fees is/are negotiable?

Thanks!

The only fee in your list that's negotiable is the dealer doc fee and, to some extent, the security deposit. Don't let them tell you that it's a fee manadated by the state because that's baloney. Some Ohio car dealers will tell customers that it's a fee mandated by the state. I actually caught one Ohio dealer doing just that and refused to send them anymore business. No state mandates a dealer doc fee as far as I know.

The Acq fee is established by the fund provider but some dealers add a markup. Ask to see a "hard copy" of the fund provider's rate sheet which includes money factors and the acq fee.

The security deposit is usually the monthly payment rounded up to the next whole $25 or $50. Security deposits are generally not required if your credit is outstanding. However, some fund providers will waive the security deposit in exchange for a higher money factor (i.e., cost of money factor) so be governed accordingly.

Registration/title fees are set by the state and are non-negotiable.

Disposition fees are levied by the fund provider at lease end and may be waived particularly if you return the car in excellent condition.

Above all, you need to learn the language of leasing (i.e., terminology) and learn how to calculate a lease payment; otherwise, you're at the dealer's mercy. Always ask for the "buy rate" which is the money factor with 0% reserves.

I've posted several commentaries on this website regarding lease payment calculations and associated lease terminology. You may want to check them out. I actually have quite a few posts that people have found very helpful. Some posts include a discussion of how to create a lease proposal and stresses the importance of establishing selling price first. Check out edmunds.com for cost information. You MUST be in control of the deal. NEVER EVER allow the dealer to control the deal; otherwise, you're leaving yourself wide open to getting raped.

Hope this helps.

Isn't the disposition fee typically non-waivable unless you buy the car at lease end or lease/buy another car from the same manufacturer?

Disposition fees are waiverable. In fact, my fund provider waived my disposition fee a few years ago because I returned the vehicle in mint condition. And so, waiving the disposition fee is by no means limited to the purchase or lease of another vehicle from the same dealership or manufacturer.

If you buy the vehicle at lease end, you'll probably pay a "purchase option" fee in lieu of a disposition fee. The purchase option fee and disposition fee are different animals. The disposition fee is charged to partially offset the expense of re-conditioning the vehicle while the purchase option fee is a " sales transaction" fee used to cover the cost of drafting the necessary documents germane to the purchase.

The bottom line is that all fees are waiverable including dealer doc fees except regulatory fees. A bank or dealer can waive any or all of their fees at their discretion. It's the regulatory fees (e.g., title/registration, etc) that aren't waiverable.

I'm at the final month of my current lease (captive lease company). The car passed the lease end inspection in flying colors with no assessed fee whatsoever. How do I ask them to waive the disposition fee when it's clearly in the signed contract? It's part of their profit. Why would they do you a favor and waive the fee if you are not buying/leasing another car from them? Thanks!

Keep in mind that the disposition fee is, to a large extent, a re-conditioning fee. Will your vehicle be under the mileage allowance when you return it? Will the interior and exterior be in mint condition? If so, you have a very strong case and so I would simply ask the finance captive to please waive this fee as there is no good reason to collect it other than it's contractual. You would be foolish NOT to ask and certainly have nothing to lose and everything to gain by asking. There are only two ways for the captive to answer; YES or NO .

Also, keep in mind that greed and poor decision making is what got the auto makers into financial trouble. Good customer relations will go a long ways in helping to restore consumer confidence. And so, asking for a waiver is not an unreasonable request; especially given our current market conditions.

Good luck!