What Are Excess Mileage Charges?
Excess mileage charges are fees you pay when you exceed the mileage limit in your car lease agreement. These charges are typically $0.15 to $0.30 per mile and compensate the leasing company for additional wear and depreciation caused by higher-than-expected mileage.
Every lease includes a mileage allowance. Going over that limit results in per-mile penalties due at lease end.
How Excess Mileage Charges Work
When you lease a vehicle, you agree to a specific annual mileage limit, usually:
10,000 miles per year
12,000 miles per year
15,000 miles per year
If you exceed the total allowed mileage during the lease term, the leasing company applies a per-mile fee outlined in your contract
Example of Excess Mileage Charges
Suppose you sign a 36-month lease with:
At lease end, your odometer reads 40,000 miles.
You exceeded the limit by 4,000 miles.
If your contract states a charge of $0.15 per mile:
4,000 × $0.15 = $600 in excess mileage fees
Luxury vehicles may charge $0.20–$0.30 per mile, which would increase the total penalty.
Why Leasing Companies Charge for Extra Miles
Lease payments are calculated based on:
Higher mileage reduces resale value. Excess mileage charges compensate the lessor for that additional depreciation.
