New Car Loan

Question by Amy N:
Acquisition (loan origination) fee, when leasing a new car?
I am negotiating to buy a new Lexus. I am in Northern California.

The dealer charges $ 700 “leasing origination fee”. I think some place refers to this fee as an “acquisition” fee. The problem is that I am not going to a different leasing company. I am getting the lease thru Lexus Financial.

BTW, the dealer is willing to offer the automobile to me at $ 1000 below dealer invoice.

According to the link below, it seems to me that I am getting charged $ 700 extra. What do you think?

http://www.automotive.com/auto-loans/36/loan-tips/car-leasing-faqs.html

The Undisclosed Acquisition Fee

An acquisition fee is required by most leasing companies in order to open a lease. This fee, also known as a lease origination fee, is usually around $ 450, but can be as high as $ 700. Originally this fee was invented by the dealers, who would claim the automobile leasing company charged the fee. The dealer would then pocket the fee. But the leasing companies caught on, and began charging the acquisition fee on their own. The dealers are trained to integrate the acquisition fee into the lease in order to let it go unnoticed. To avoid this, always ask for everything, every single dollar on your lease agreement, to be itemized and explained clearly. This way you can save yourself from paying these or other hidden costs.

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