What is Acquisition Fee?

An acquisition fee, sometimes called a lease initiation or administration fee, is a charge the leasing company adds at the start of a lease to cover the cost of setting up the contract. It is usually a few hundred dollars and can either be paid upfront as part of the drive-away amount or capitalized into the lease and spread across the monthly payments. Because rolling it into the cap cost increases the amount subject to the money factor, paying it upfront can slightly lower the payment. Canadian dealers should disclose the acquisition fee clearly on the lease worksheet and explain the two payment options, since transparent fee disclosure supports both consumer trust and provincial all-in advertising requirements.