Acquisition fee, explained

What it means

The acquisition fee (also called a bank fee or assignment fee) is what the leasing company charges to originate your lease. It covers credit checks, paperwork, and administrative costs. The fee is set by the lender, not the dealer, so you can't negotiate it away. It's usually rolled into your cap cost, meaning you finance it over the lease term rather than paying it upfront. Different brands charge different amounts. Toyota Financial charges around $650, while BMW Financial is closer to $925.

Why it matters

Because the acquisition fee gets financed, you pay interest on it through your money factor for the entire lease. A $795 fee might cost you an extra $850 over 36 months once financing costs are included. When you're comparing lease offers from different brands, factor in the acquisition fee. A lease that looks cheaper on monthly payment might cost more once you account for a higher acq fee. And if you lease frequently, these fees add up. Three leases over nine years means paying three acquisition fees.

What to do

Before you commit to a lease, ask for the acquisition fee amount and confirm it's included in the cap cost. When you're comparing multiple lease deals or deciding whether to lease at all, check our lease vs buy analysis to see the full cost picture.