Mike_TX

okay, I've done leases a number of times now, and I've never paid any "acquisition fee". But people talking obout their leases with LFS always mention this fee, and it's as high as $600.

So is this just a bull****** fee to pad their profit margin? That one innocent-looking little item would add about $20 a month to a 3-year lease!

Has anyone told them to stuff their acquisition fee? Did they back off of it?

sanwong

It is kind of like the BS closing cost we incur when we buy/ refinance a house

waynetech2

UUHH..def not BS, most banks will always want sumthin up front if theyre going to partner in a loan with you.
600 is the norm for LFS, and cant be waived by dealer..they can waive security deposit tho..credit based..

AsianGirl007

iTrader: (1)

Yeah, all banks charge acquisition fee, not just Lexus.

knuckles

Yep, same here. I tried to negotiate the $600 acquisition fee out and the finance manager told me that was charged by the bank not them (i.e. the dealer). Whatever. I got what I thought was a good deal otherwise, so I paid it...

antics22

There will ALWAYS be an aquisition fee and it can vary from $475 to as much as $875 depending on brand and the fnancial institution...). This is a financial institution fee that CANNOT be waived. If you have leased in the past and never saw this until this deal, then you probably didn't really go over your previous lease contract(s) very carefully.

Sometimes its included in the "initial drive-off" (aquisition fee + license + 1st months payment w/tax) and sometimes they bury it in the total cap cost of the vehicle..

Its how the banks make their money to assume your lease and promise to pay.

EG: original cap cost (selling price) $40,000
adjusted cap cost ----------------> $40,600

The cap cost can be adjusted to reflect a lower drive-off or higher drive-off, etc.

Mike_TX

Maybe that's it ... it's just been hidden.

But, silly me ... I thought the interest was how the banks make their money!