Acquisition Fee
An acquisition fee, in the auto industry, is a fee that is charged by a lender or leasing company to cover the administrative costs associated with setting up a new car loan or lease. This fee is often added to the total amount financed or leased.
In car loans, the charge is added to the loan amount when you finance the purchase of a vehicle through a lender. It is usually a one-time fee charge and is not included in the car loan’s annual percentage rate (APR).
In car leases, it is also called a bank fee or origination fee, which is a charge imposed by automotive leasing companies for establishing a lease. It is used to cover the costs associated with the lender’s administrative tasks in setting up the lease, including obtaining a credit report and verifying personal information. It is important to note that the amount of the fee is not dependent on the borrower’s credit score or other qualifications.
In car loans, the charge is added to the loan amount when you finance the purchase of a vehicle through a lender. It is usually a one-time fee charge and is not included in the car loan’s annual percentage rate (APR).
In car leases, it is also called a bank fee or origination fee, which is a charge imposed by automotive leasing companies for establishing a lease. It is used to cover the costs associated with the lender’s administrative tasks in setting up the lease, including obtaining a credit report and verifying personal information. It is important to note that the amount of the fee is not dependent on the borrower’s credit score or other qualifications.