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Leased a 2016 Cadillac ATS and when the lease ended, I turned the vehicle in at another Cadillac dealer closer to my home. The vehicle was in immaculate condition (GM Financial had AutoVin inspect the vehicle and they determined that the vehicle need $0 dollars to for repairs...only 2700 miles after 2 years, no nicks, dings, etc.). In fact, the dealer actually kept the vehicle themselves and it was on their lot for sale within a week. GM Financial charges a "disposition fee, " which is understandable if the vehicle has nicks & dings that need to be repaired and has to go through the auction process. None of this applied to my vehicle, as the dealer simply changed the oil and performed a $99 "detailing" on the vehicle. GM Financial has the contractual right to charge the full "disposition fee, " however, as this vehicle had virtually no expenses associated with my turning it in and preparing it for sale (no transportation to auction, no mechanical or body work, etc.), I asked GM Financial to waive the $595 "disposition fee" due to the excellent condition of the vehicle and the fact that I was intending to lease a new Cadillac XT4 when one became available. I worked for GM for over 35 years and had driven GM vehicles exclusively for over 45 years. When presented with the facts, GM Financial simply stated that "if we were to not charge you, we'd have to do that for everyone, " which is not true. In fact, I had another 2016 GM vehicle that I returned to this same dealer roughly a month earlier, and although the "disposition fee" was written into the contract, GM Financial waived the fee (no, I did not lease another vehicle, either). Why they would charge me for a vehicle that required virtually zero money to prepare for resale (only work performed was an oil change and wash/wax) is simply unfair. The vehicle didn't go to auction or have body/mechanical work performed on it. It didn't even leave the dealer's lot. Sure, the "disposition fee" is in the contract, but they also have lease contracts that read "$XX dollars, OR LESS" as the "disposition fee." This could not have been more simple. The dealer loved the car so much that GM Financial simply had to prepare new paperwork...they did not have to allocate a single penny towards an auction, transportation or repairs, yet they chose to still charge me a "disposition fee." I am now rethinking my lease on the XT4, and would like to have GM Financial return the balance of the "disposition fee" that they charged me.
Update...On my second attempt to appeal the "disposition fee" charge, GM Financial did reduce the figure owed to $400, which, according to numerous websites, is still high for a "disposition fee."
I am still asking for the full amount to be reimbursed.
I've leased cars for over 10 years. The disposition fee is nothing new, for GM or any other company. They just don't EMPHASIZE it when signing the lease, because you do that with the dealership. The disposition fee is charged by the finance company. If you lease with the dealership again, the DEALERSHIP takes care of the disposition fee because you're bringing them business again. My cars are always turned in with no excess wear and tear, immaculate condition, and I always get charged the fee. It is expected. It will only get waived if I trade it in for another car at that dealership. That makes sense. It's in the contract from the beginning. As for marks on the rim from parallel parking, that's not normal for everyone. My rims are fine. My parents on the other hand, all jacked up. Get your complimentary pre-inspection before turning in your car and you will know what will count as EXCESS wear and tear. That's what that service is there for.
I agree with the others listed here. I turned in an immaculate condition GMC Sierra Denali. Dealer didn’t have to do squat for detailing as it was in pristine condition. Dealership kept the vehicle and it was resold within 9 days off their lot from my drop off date. Approx. 3 weeks later I get a disposition fee bill in the mail. $495 disposition fee plus $28 in taxes ($523 total) The dealership NEVER told me about this and while I’m contractually obligated to pay, so help me God it will be the last GM vehicle my family will own. I’m disgusted with the gouging and certainly have other options. I’m just amazed how short sighted GM is at their customer relations.
We recently returned a 2015 Malibu to our Chevy dealer with no problems and just received the bill for the disposition fee. Nobody at GM or the dealer informed us of the fee; though, I was told by GM Financial that it is part of the lease agreement. I received at least a half dozen documents from GM prior to lease termination with information on how to turn in the vehicle. None of these documents mention the disposition fee. After discussing the matter at length with GM Financial and sensing no possibility of getting the fee waived or reduced, I concluded the best option was to not pay the bill. There may be a small ding on my credit but not too worried about it. As for GM, it is no wonder their business continues to struggle.
I am dealing with the same issue. In addition to the $495 fees, they are also charing me $170 for "excess wear and tear", which consists of 1 tiny scratch on 2 of the rims (a very common thing that happens when you parallel park. Go to any parking lot and look at the tires on the cars there and you'll see the very same thing on every car out there. I't s NORMAL wear and tear. I also turned my truck in with almost $2000 in upgrades to boot (exhaust and pipes, exterior upgrades).
Disposition fee - I agree with others, this is not presented to the customer in an acceptable manner at the time of sale, and is shady to be charges. It's a hug slap in the face when it's left way under the radar until you turn the vehicle back in.
I'm with a lot of other folks out there - will NEVER lease or buy from GM again. Very poor customer treatment and unethical business practices.
I had the same experience with a recently returned lease. After searching the web, it appears to be a very common complaint, so we are not alone. GM charged me $395 disposition fee plus taxes for turning in my vehicle. It was not clearly explained to me at time of lease. GM should straighten this out with their dealers. It is costing them future customers! I am clearly never going to lease, or buy from GM again!
I just received my bill regarding a disposition fee from my turned in lease. I had no idea I was going to have this additional bill! When I called they told me it was part of my contract that I would have a disposition fee if I didn’t lease again or buy a vehicle. My fee was $395 plus state taxes! I think this is a horrible practice for GM Financial! They also said there’s nothing I can do about it unless I can convince the dealership to pay it. Now, since I didn’t lease again or purchase another vehicle, why would they do that? Mine also was a 4 cylinder Equinox. I will never lease again!
We also had to pay more than a $400 disposition fee. We had a 4 cylinder Equinox not an awesome Cadillac like another customer on here had who had to pay about the same.
It is my understanding that the disposition fee has absolutely nothing to do with the condition or mileage on the vehicle upon turning it in. This fee is charged if you do not purchase the vehicle or lease another vehicle because if it sits on their lot as an unsold vehicle for a month or 2 they consider that a lost sale and the fee makes up for that somehow or at least they feel justified in charging that amount. If you drive a car only 2700 miles at an average cost of $5 dollars per mile over a 2 year period for a lease that probably cost $10, 800 over 2 years use this doesn't seem like a person who would be worried about the $500 fee upon turn in. You could buy a beautiful used vehicle for the cost of the 2 year lease and drive it for 10 years and save a ton in payments and even insurance. If you lease, use the mileage allotted because saving up miles will not win you any brownie points upon turn in with GM Financial or the dealership. You are just putting more money in their pockets from another buyer who will appreciate the low mileage.