Excess Mileage Charge
Also known as: Over-Mileage Fee, Excess Miles Penalty, Mileage Overage
An excess mileage charge is a per-mile fee ($0.15-$0.30) assessed at lease end for every mile driven over the contracted mileage allowance, typically 10,000-15,000 miles per year.
How Excess Mileage Charge Works
When you sign a lease, you agree to an annual mileage limit (usually 10,000, 12,000, or 15,000 miles per year). At lease end, the odometer is checked. Every mile over the total allowance is charged at the rate specified in your contract. At $0.25/mile, just 5,000 excess miles costs $1,250. If you know you'll drive more, negotiate a higher mileage allowance upfront — it's cheaper than paying excess charges at the end.
Example
36-month lease, 12,000 miles/year = 36,000 mile allowance. If you drive 42,000 miles, that's 6,000 excess miles at $0.25/mile = $1,500 charge at lease end.
Frequently Asked Questions
How much is the excess mileage fee on a lease?
Excess mileage fees typically range from $0.15 to $0.30 per mile, depending on the manufacturer. Luxury brands tend to charge more. Common rates: Toyota $0.15/mile, Honda $0.15/mile, BMW $0.25/mile, Mercedes $0.25/mile.
Can you negotiate excess mileage charges?
You can negotiate a higher mileage allowance before signing the lease, which is cheaper per mile than paying excess charges later. Some dealers and manufacturers will negotiate or waive excess mileage charges if you lease another vehicle from them.
Related Lease Terms
Residual value is the projected worth of a leased vehicle at the end of the lease term, expressed as a percentage of MSRP.
Disposition FeeA disposition fee is a charge (typically $300-$500) assessed by the leasing company when you return a leased vehicle at the end of the lease term.
Due at SigningDue at signing (DAS) is the total upfront payment required when signing a car lease.
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