I have exceeded my annual mileage limit

I’ve exceeded my annual mileage limit – what happens next?

Your lease price is based on how much your car depreciates over the contract, and mileage plays a big part in that. So, if you’ve gone over your agreed limit (or you think you will), expect a charge at the end of your lease.

It’s how the finance provider recoups the extra depreciation those unplanned miles have caused.

How it’s charged

Excess mileage is charged on a pence-per-mile basis, though the exact rates varies – you’ll find yours listed in your finance documentation. It’s billed after your lease car is collected, not as you go.

It’s the whole contract that counts

Your mileage limit applies across the full term, not year-by-year. For example, if you’ve agreed 10,000 miles annually over a three-year lease, that’s a 30,000-mile allowance in total.

Go over in year one, and you can claw it back in year two or three if you land under the overall limit by the time the car goes back.

So, if you’re still in the first couple years of your lease, hope is not lost – if you can be under your overall mileage by the end of your lease, you won’t face additional charges.

Spot it early, sort it early

If you can see you’re on track to go over – a new commute, more long trips than expected – don’t wait until collection day to deal with it. Many finance providers will let you adjust your mileage allowance partway through your contract for a bit more money each month. It’s worth doing the maths on that against paying the excess charge later, to see what the cheapest route for you will be.

Either way, staying on top of your mileage (and speaking to your provider sooner rather than later) means fewer surprises when your car lease comes to an end.