What is a mileage allowance on a car lease?
Leases cap how far you can drive, commonly 10,000–15,000 miles per year. Go over and you pay an excess-mileage fee (often $0.15–$0.30 per mile) when you return the car. Those overage charges add up fast.
Why it matters
Mileage caps are standard. What varies is the limit and the per-mile penalty, both worth checking against how much you actually drive.
What dealers don't tell you
- A low annual limit relative to your real driving.
- A high per-mile overage rate (over $0.25/mile).
- No option to pre-purchase extra miles at a discount.
How to negotiate it
- Estimate your real annual mileage and buy the right allowance up front.
- Ask to pre-purchase extra miles, which is cheaper than paying at lease end.
Worked example
"10,000 miles per year; excess mileage charged at $0.25 per mile." Driving 15,000/year for 3 years could cost $3,750 in overage.
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Explain my car leaseFrequently asked questions
What happens if I go over my mileage?
You pay the per-mile overage fee for every mile above your total allowance when you return the car, unless you buy the vehicle.