I have exceeded my annual mileage limit
As the cost of a lease deal is based on vehicle depreciation and as mileage is intrinsically linked with the car's residual value, exceeding the mileage limit of your lease contract will be chargeable. This allows the leasing company to compensate for the additional depreciation caused by the unexpected extra miles travelled.
Excess mileage is charged on a pence per mile basis. This amount does change per car and per finance company but will be listed in your finance documentation. It will be billed after the collection of your lease car at the end of your term.
It is important to remember that your mileage is considered based on your whole term. So, with a 10,000 mile annual limit, over a three year deal this will equal 30,000. You could exceed 10,000 one year but be under the next, as long as the total miles travelled does not exceed your total mileage limit for your lease contract.
Was this article helpful?