Excess mileage charges and how to avoid them

By Adele Barry
Excess mileage charges and how to avoid them

Unexpected charges at the end of a lease contract are not a welcome surprise.

You can avoid excess mileage charges by following some simple steps. We look at these charges and show you how to avoid them.


When you take out a lease contract you agree to drive a fixed number of miles over an agreed period.

For example, take out a three-year lease and agree to drive no more than 10,000 miles per year for the duration of the lease.

The finance company uses this to calculate your monthly lease price. The amount your vehicle will be worth at the end of your contract depends on how many miles it has covered.

One point to bear in mind is that you can carry miles over during your contract. If you have a three-year contract, on 10,0000 miles a year, that’s 30,000 over the duration of your contract.

You could drive 12,000 in the first year, 6,000 in the second year, and 11,000 in the third year. This means you would still be within your agreed 30,0000 limit when you hand the vehicle back.

If you drive more miles than pre-agreed, your vehicle will be worth less than predicted when you return it to the finance company at end of the lease.

The finance company will then need to recover this loss which is why they charge excess mileage fees.


Excess mileage charges vary depending on the finance provider. They can be anywhere between 3p and 30p per mile. On average they tend to be around 7p to 8p per mile.

The finance provider will multiply the mileage charge by the number of miles exceeded. This will give them the excess mileage charge.

If excess mileage charges were 5p per mile and you went over by 1,000 miles – 5p x 1,000 = £50.

The finance company would then charge you £50 at the end of your contract.

Make sure you check how much excess mileage charges are before you agree to your lease contract.


Check your mileage often. If you think you may exceed the agreed amount, contact your finance provider. Circumstances do change and finance providers are aware of this.

Some providers allow you to amend your contract and extend the mileage allowance. Not all providers offer this, and some will charge an admin fee for amending the contract.

If you can amend your mileage allowance it usually works out less than paying the excess mileage charge.

Before agreeing to any lease choose a realistic mileage allowance. This should consider daily commutes as well as weekend and leisure driving.

Most lease providers can tailor quotes to a mileage that suits you. If you see a deal advertised, ask for a tailored quote to suit you.


We specialise in personal and business vehicle leases. We have a fantastic range of vehicles on offer, any make, and model, car, or van, delivered to your door.

We have been supplying lease vehicles for almost 30 years. Our reputation is very important to us. Network Vehicles Limited (A LeasePlan Bank Group Member), audits us. We are also a member of the British Vehicle Rental and Leasing Association (BVRLA).

If you would like a quote on a lease car or van, contact us today.

Call: 0800 096 6488

Email: website@v4b.co.uk

Website: v4b.co.uk

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