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What is an acquisition cost? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial decisions by providing you with financial calculators and interactive tools that provide objective and unique content, by enabling you to conduct your own research and analyze data for free to help you make informed financial decisions. Bankrate has partnerships with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including for instance, the order in which they be listed within the categories of listing and other categories, unless prohibited by law. Our loan products, such as mortgages and home equity, and other home lending products. This compensation, however, does not influence the information we publish, or the reviews appear on this website. We do not include the universe of companies or financial offers that may be available to you. SHARE Nejron Photo/Shutterstock
2 min read Published 26 February 2022
written by Zina Kumok. Written by Contributing writer Zina Kumok has been a full-time personal finance writer since the year 2015. She's a three-time nominee for Best Personal Finance Contributor/Freelancer at the Plutus Awards and a two-time speaker at FinCon, the premier financial media conference. Edited by Chelsea Wing Edited by student loans editor Chelsea is with Bankrate since early 2020. She's dedicated to helping students to navigate the steep cost of college as well as dissecting the complexity in student loans. The Bankrate guarantee
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If you have questions about money. Bankrate has the answers. Our experts have been helping you master your money for over four years. We strive to continuously provide consumers with the expert guidance and the tools necessary to succeed throughout life's financial journey. Bankrate follows a strict , so you can trust that our information is trustworthy and reliable. Our award-winning editors, reporters and editors create honest and accurate information to assist you in making the best financial choices. Our content produced by our editorial staff is objective, truthful and uninfluenced from our advertising. We're open about how we are able to bring quality information, competitive rates and useful tools for our customers by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products and, services, or by you clicking on certain hyperlinks on our website. This compensation could influence the manner, place and when products appear within listing categories in the event that they are not permitted by law for our mortgage, home equity and other products for home loans. Other factors, such as our own website rules and whether a product is offered in the area you reside in or is within your own personal credit score can also impact the manner in which products are featured on this website. Although we try to offer the most diverse selection of products, Bankrate does not include details about every credit or financial product or service. A acquisition fee is a fee you pay when or other kinds of vehicles . It could be called the administration fee, assignment fee, or origination fee. The fee is generally about a couple hundred dollars, so it's critical to factor this cost into your budget when searching for a car to lease. Is there an acquisition charge? In almost all cases, when you take out a loan you'll have to pay an initial fee or charge back to your lender. This fee generally covers the cost of initiating the loan and conducting an credit check on the consumer. For leases on cars it is referred to as an acquisition fee . It can also be referred to as an administrative fee or bank fee. The acquisition fee could be charged upfront or rolled into the monthly lease payment. What is the cost of an acquisition fee? The acquisition cost for an auto lease typically can range from $395 to $895, but it can vary based on the car in question along with the company leasing you're dealing with, as per Edmunds. In general, the more costly the car, the greater the cost of acquisition. A luxurious car will almost always come with a higher acquisition fee than a sedan that is mid-range. Unlike interest rates, the acquisition fee isn't affected by the individual's financial situation, credit score, or other personal factors. How do I know if my loan includes an acquisition fee? The easiest way to figure out if your lease comes with an acquisition cost is to inquire with the lender or the dealer directly. If you have the lease, you should read it through carefully to see if there's the mention of an acquisition fee. They are skilled in hiding fees in the fine print, and it could be difficult to spot. Acquisition fees are also bundled into your monthly lease payment. If they are paid in advance or part of the monthly lease installments, legally, lenders have to disclose additional charges or fees if you ask. Are acquisition fees negotiable? Like buying a car, you should at a minimum try to discuss. The acquisition cost and other lease-related features such as trade-in value as well as the interest rate and loan duration may be negotiable. If this doesn't work it's possible to search for a lease somewhere else which doesn't have an acquisition cost. There are often lease specials provided by both dealers and manufacturers which could offer better alternatives which is why it's essential to shop around. It's important to note that in the rare cases when you can negotiate a lower cost for your acquisition with a lender and they might increase your money factor in response. Make sure you are aware of the terms of your lease contract before you sign it. How do you pay an acquisition cost If your leasing company charges fees for acquisition, this expense can either be paid in advance or rolled to the cost total of the loan. If you select the latter option, the acquisition fee will be included in the total for the lease. This will increase the monthly lease payments , and will cost you more in the long run because of compound interest. In addition, adding the acquisition fee the loan could be beneficial, but in the event that you end up having to pay for the vehicle. In the event that you are paying the acquisition fee upfront and the car is damaged in an accident, you won't get any of the fees back from the lender. But if you had rolled an acquisition cost into the loan and then refinanced the loan, you'd be able to recover a portion of the amount. The bottom line: Acquisition fees are only able to be avoided if you notice they are there prior to signing the contract. If you attempt to negotiate the fee with the leasing company and have no luck, consider finding a new offer. Beware of being pressured into accepting the lease agreement. Before signing a lease agreement take a look at several companies and see what kind of . Doing some research is the best way to minimize or avoid the cost of acquisition. Learn more:
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Written by Contributing writer Zina Kumok. Kumok has been a full-time personal finance writer since the year. She's a three-time nominee for Best Personal Finance Contributor/Freelancer at the Plutus Awards and a two-time speaker at FinCon, the premier financial media conference. Edited by Chelsea Wing Edited by Student loans editor Chelsea has been with Bankrate since the beginning of 2020. She's dedicated to helping students navigate the high costs of college and dissecting the complexity of student loans.
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