What Happens When I Go Over My Miles on a Lease Car

What Happens When I Go Over My Miles on a Lease Car

What Happens When I Go Over My Miles on a Lease Car.As a car gets older, it depreciates in value and the more miles it has on the clock, the greater that depreciation. So when you take on a lease on a car, you agree to a set mileage allowance over the period of the lease, with a cost built into your monthly cost agreement – the more the mileage allowance, the greater the cost.

Additional Articles You Might Enjoy
What is a Maintenance Package
personal car leasing with maintenance

When you return the vehicle to the finance house, the collection driver will check the miles on the clock. The Finance house will then calculate how much over your agreed mileage you are, and they will charge you what is known as an excess mileage charge. Depending on the lease company, and sometimes the vehicle model, this can range anywhere from around 6p to £1+VAT (Value Added Tax) per mile.

What Happens When I Go Over My Miles on a Lease Car

Some finance houses like Lex Vehicle Leasing increase the excess mileage charge if you do more than 10% of the contract mileage, and the increase is 50% more for every mile over the 10% agreed margin, so 6p turns into 9p per mile and £1 turns into £1.50. If you’re in doubt, check your agreement.

If you’d rather not have to deal with extra charges at the end of your contract but you know you’re going to be over your annual mileage, some finance houses let you increase your mileage mid-contract so you can always give them a call and ask them to do this. This may result in an increase in your monthly payments, but you’ll avoid a lump sum at the end. However, if you do decide to increase your mileage but you don’t use the extra miles, you won’t get a refund.

I hope i’ve helped you out. For people reading this and asking What Happens When I Go Over My Miles on a Lease Car then please apply here and once approved we provide a no obligation quote and you can lease a car from any dealer in the UK.

Of course, if you have anymore questions about What Happens When I Go Over My Miles on a Lease Car , we’re more than happy to help. Our friendly and helpful staff are only a phone call away on 028 7122 8822 . Or contact us online here.

What Happens When I Go Over My Miles on a Lease Car