Mileage limits and wear charges at lease end

What overage costs

Lease contracts set an annual mileage allowance — commonly 10,000, 12,000 or 15,000 miles — and charge for every mile beyond it at lease end. Rates typically run from 15 to 30 cents a mile depending on the brand and segment.

Going 5,000 miles over at 25 cents is $1,250, payable when you return the car. It is one of the more common unpleasant surprises at lease end, largely because it arrives as a single bill three years after the decision that caused it.

Buying miles up front

Most lenders sell additional mileage at signing, usually at a lower rate than the overage charge — perhaps 15 cents a mile instead of 25.

The catch is that prepaid miles are generally not refundable if you do not use them. Buying 10,000 extra miles you never drive is money gone.

The sensible approach is to be honest about your actual driving rather than optimistic. If you are genuinely uncertain, being slightly under and paying a modest overage is usually cheaper than prepaying for miles you may not need.

Excess wear

Every lease allows for normal wear. What counts as excess varies by lender, but the usual thresholds involve dents beyond a certain diameter, scratches through the paint, tyres below a minimum tread depth, and any cracked glass.

Most lenders will do a pre-return inspection some weeks before the end. That is worth taking up: it tells you what will be charged while you still have time to fix items yourself, which is almost always cheaper than the lender's rate.

Replacing worn tyres and having small dents removed before return commonly costs a fraction of what appears on the final bill.

Common questions

How much does going over the mileage on a lease cost?

Typically 15 to 30 cents per mile, charged when you return the vehicle. Five thousand miles over at 25 cents is $1,250.

Should I buy extra miles up front?

Only if you are confident you will use them. Prepaid mileage is usually cheaper per mile than the overage rate but is generally non-refundable, so buying miles you do not drive is a straight loss.

What counts as excess wear on a leased car?

It varies by lender, but commonly dents above a set size, scratches through the paint, tyres below minimum tread, and cracked glass. Take the pre-return inspection so you can fix items yourself, which is usually far cheaper.

Put it to work

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