Charged at lease end for processing your return. Waived if you lease another Tesla within 30 days.
What Is the Disposition Fee?
The disposition fee is a standard charge at the end of your Tesla lease. It covers:
- Vehicle inspection costs
- Administrative processing
- Preparing the car for resale
- Paperwork and title transfer
When Do You Pay It?
Tesla sends lease-end information. You schedule your return or indicate interest in a new lease.
You drop off the car at a Tesla service center. They perform a brief inspection for excess wear and mileage.
Tesla sends your final lease statement. The $395 disposition fee appears here if applicable.
The fee is typically due with your final statement. Late payments may incur interest.
How to Avoid the Disposition Fee
- โ New Model 3, Y, S, X, or Cybertruck
- โ 30-day window from return date
- โ Must be a new lease (not used takeover)
- โ Return and walk away
- โ Buy a non-Tesla
- โ Wait more than 30 days to re-lease
Even if you're not sure you want another Tesla, you can lease a new one and return it within the 7-day return policy (if available in your state). This waives the disposition fee on your old lease, and you can still return the new one. Check your state's cooling-off period first.
Is It Worth Leasing Again Just to Save $395?
| Scenario | Disposition Fee | New Lease Payment | Verdict |
|---|---|---|---|
| Lease new Model 3 | $0 (waived) | $564/mo | Only if you want the car |
| Walk away | $395 | $0 | Cheaper if you don't want another Tesla |
| Lease, then return (if allowed) | $0 (waived) | $0 (if returned) | Best if available in your state |
Disposition Fee vs. Acquisition Fee
| Fee | Amount | When Paid | Can Be Avoided? |
|---|---|---|---|
| Disposition Fee | $395 | Lease end | Yes โ lease another Tesla |
| Acquisition Fee | $695 | Lease start | No โ always charged |
What About Excess Wear and Tear?
The disposition fee is separate from any charges for:
- Excess mileage: $0.25 per mile over your allowance
- Damage: Scratches, dents, wheel damage, cracked glass
- Tire wear: Below 4/32" tread depth
- Missing items: Charger, mats, key fobs
Schedule a lease-end inspection 60-90 days before return. Fix any issues yourself โ Tesla's repair costs are often higher than local shops.
State-by-State Variations
| State | Disposition Fee | Notes |
|---|---|---|
| California | $395 | Standard, waived with new lease |
| New York | $395 | Same policy |
| Texas | $395 | Same policy |
| Florida | $395 | Same policy |
Frequently Asked Questions
A $395 fee charged at lease end for processing the return of your vehicle.
Yes. Lease another Tesla within 30 days and the fee is waived.
No, it's fixed in your lease contract. The only way to avoid it is to re-lease.
It appears on your final lease statement, usually 2-4 weeks after returning the car.
No. It's separate from excess wear and tear or mileage overage charges.
The disposition fee applies at lease end regardless of who is leasing. If you transfer, the new lessee pays it at their end.
Sources: Tesla Motor Vehicle Lease Agreement, Tesla lease-end documentation, community-reported experiences. Current as of March 2026.