The term disposition fee, in a car lease, refers to the fee that is charged at the end of the lease when the car is returned to the lease company.

This fee is common and in all car leases and cannot be negotiated away.

The fee is paid when the lease finance company sends a bill to the customer, possibly several weeks after the car’s return. The amount of the fee is usually $350.

The disposition fee pays for administration of the return as well as for preparation of the car for sale at auction.