How Can a High Average Mileage Affect Your Lease?

One of the most common concerns people have around leasing is the additional charges you may be subject to if you go over your agreed mileage. The good news is that estimating how many miles you’ll drive over the course of your lease agreement is straightforward. Our leasing experts will help you to review your driving habits and support you in making sure your lease agreement meets your lifestyle needs.

Before signing a lease contract, you’ll need to agree on a mileage limit to match your expected use, as finance providers will want your vehicle to be in usable condition once it is returned. As a result, if you underestimate how many miles you drive per year on your car, you could end up paying more than you expected.

If you want to avoid additional fees, keeping an eye on your mileage is important. Our guide will teach you all you need to know about mileage limits, why they’re important, and your options if you exceed your arranged allowance. With the right mileage plan in place, leasing is a simple and predictable way to drive a new car. 

Why it’s important to keep an eye on your mileage

Mileage is the total distance that your car has travelled. The more miles you drive in a vehicle, the higher its mileage will be.

While it’s useful to see what distance you’ve covered, this information is also used by funders and manufacturers to estimate depreciation value and wear-and-tear. The further you drive a car, the more susceptible it will be to damage and breakdowns, which can lead to expensive maintenance fees.

This is why most leasing companies will arrange a mileage limit before you sign a contract. If you exceed this pre-arranged limit, you may be required to pay additional costs upon returning your vehicle. 

How mileage can ultimately affect your leasing terms

There are multiple ways that your mileage can impact the terms of your car lease. Here are a few key points to be aware of if you’re leasing a vehicle with a high average mileage per year: 

Higher monthly payments

Higher mileage limits often lead to more expensive monthly payments. This is because your contract terms are often based on your vehicle’s estimated value at the end of your lease, and long-distance travel will cause it to depreciate more quickly.

However, leasing can still be a great option for high-mileage drivers, with tailored plans designed to suit frequent travel while keeping costs predictable. For more information on budgeting for your contract, you can read our helpful guide on how much it costs to lease a car.

Increased maintenance costs

As your mileage increases, the chances of your car breaking down or being damaged also increase. As a result, you’re more likely to have to pay maintenance fees to repair your car or keep it in optimal condition. Many lease deals include maintenance packages for added peace of mind, helping you manage these costs and keep everything predictable. 

Penalty fees

At the end of a car lease, exceeding your agreed mileage allowance can lead to additional charges. Your finance provider is likely to charge an additional penalty for each mile over your pre-arranged limit. Representative example: Let’s say you’ve agreed you’ll drive 8,000 miles with an excess charge of 10p per mile, at the end of our lease you’ve actually driven 8,500 miles. Your total excess charge would be £50.00. 

However, excess mileage charges will be clearly outlined upfront, so there should be no surprises if your driving habits change. 

How to set a mileage allowance for your lease

Before you sign a contract, you’ll need to estimate how far you’re likely to drive annually, as well as add buffer time for unexpected trips or longer-distance travel. Low mileage options typically start at 5,000 to 8,000 miles per year, while a car lease with high mileage might allow over 15,000 miles per year.

A mileage calculator can help you find an accurate estimate of how far you’ll need to travel on your new lease. You can also review your past driving habits for more information on how often and far you tend to drive on a weekly or annual basis. Your annual MOT certificate records your mileage at the time of your car’s most recent test, which can help you find an accurate estimate.

If you need help arranging your mileage limit, speak to our helpful leasing experts to see how they can help with your calculations. We’ll help you choose a realistic allowance based on your driving. 

Can you change your mileage allowance during your lease?

You can typically request an increase to your mileage limit before the end of your contract, but different finance companies will have their own policies about changes to the agreement. You may have to pay extra fees to increase your mileage allowance, or your provider could refuse the change altogether. Make sure to discuss your options early in your lease to avoid an agreement that doesn’t suit your needs.

What happens if you exceed your lease mileage?

If your leased vehicle exceeds the pre-arranged mileage allowance, you’ll likely have to pay penalty fees for each mile over the limit you’ve travelled. These fees vary by finance company, so it’s important to check how much you may be charged before signing your contract.

You could also contact your Account Manager to arrange an increase to your mileage limit before the end of your contract, but they’re not obligated to agree to this, and many providers are likely to charge a fee for these amendments.

What are the standard options for a lease mileage allowance?

Each finance company has its own mileage allowances for different vehicles and types of lease, so it’s important to discuss your options with your Account Manager and consider the average annual mileage UK drivers typically cover. The most common types of mileage allowance are:

• Low mileage – 5,000 to 7,000 miles, ideal for short-distance commutes or for secondary cars
• Average mileage – 8,000 to 12,000 miles, which should cover daily needs and commutes over standard distances
• High mileage – 15,000 to 30,000+ miles, for long-distance driving and frequent journeys

Can you get a lease car with unlimited mileage?

Some finance companies may offer lease cars with uncapped mileage, but these are few and far between and typically only provided by specialists. Since your finance company will want your car to be returned in a usable state, an unlimited mileage option is very rare, as high mileage can increase the risk of breakdowns and damage.

Is leasing a good option for high-mileage drivers?

If you’re likely to be travelling over long distances, you may be hesitant to take out a lease. Don’t worry, as high-mileage leasing options are available.

While these leases may feature more expensive monthly payments than low or average-mileage options, they’re often still a more affordable option compared to PCP or Hire Purchase that allows you to reap the benefits of leasing without limiting your driving.

Find your ideal lease with Leasing Options

Ready to lease a new vehicle? At Leasing Options, we offer great deals from a wide range of industry-leading manufacturers. Our helpful staff are always eager to help you find the best lease possible, so get in touch today and find your dream car at a great price!

If you’re looking for more advice on the leasing process, we can help. Check out our car leasing guide for everything you need to know before you sign your contract.