Thread: disposition fee
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Old 09-17-2010, 02:39 PM
brandonw brandonw is offline
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Join Date: Feb 2008
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Quote:
Originally Posted by tunafish View Post
I was never required to provide a security deposit, but perhaps this was because I opted to pay for the lease through direct checking account deduction.
If you were a first time BMWFS customer on this lease and you didn't see a line item for the security deposit or your dealer said they waived it, then you most likely paid more over the term of your lease. That is because a dealer cannot "waive" it. They can mark up the money factor .00015. So in turn you pay for it in your lease, which usually equates to more than the deposit and since it not a deposit any longer, you cant get it back. Security deposit waivers are never a good idea. This is different than the MSD (Multiple Security Deposit Pgm).

Quote:
Originally Posted by tunafish View Post
I was aware of the disposition fee, but I understood that charging it was more or less at the discretion of the dealer. I bought my car from a different dealer, so the old dealer refused to waive it. If it is, in fact, a fee charged by BMWFS, then I'll give them a call.
Yes, the Disposition fee is a fee charged by BMWFS. The dealer cannot waive it. They may opt to cover the cost for you if you got another car from them. But if you used BMWFS for that purchase they would waive/refund it for you anyway. But this is NOT a dealer fee.

Quote:
Originally Posted by tunafish View Post
According to the BMWNA website:

"The Disposition Fee is a charge included on your Lease Agreement, which is used to defray the cost of preparing and selling the vehicle at the end of the lease (either scheduled or early termination) if the vehicle is returned. It is not due if you purchase the vehicle. As a courtesy to our returning customers, this fee will be credited to your next account if you finance with BMW Financial Services within six (6) months."

It does not appear to be refundable if you buy a DIFFERENT BMW, but if anyone knows about this, I would be interested to hear.
When all your lease turn in paperwork and car is complete, you usually get a bill (unless you have security deposit on file). This is a fee they withhold by default as stated in the lease. However, if you do get another BMW, and lease/finance it via BMWFS, they you can provide the VIN or production number and they will then refund (waive) the disposition fee. There might be a confusion on words here. The fee is never "waived." They do refund it back to you if the get another car.

Last edited by brandonw; 09-17-2010 at 02:42 PM.
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