MileMind
Leasing & mileage
What excess mileage actually costs at hand-back
The pence-per-mile charge looks small — until you multiply it. A worked example.
The excess-mileage line in a lease looks harmless — a few pence a mile, how bad can that be? Then you go over by a few thousand miles, and "a few pence" turns into a four-figure surprise on the day you hand the car back.
How the charge actually works
Your lease comes with a total mileage allowance — your annual figure multiplied by the term. Drive past it and you pay a set rate for every mile over, settled at hand-back. That rate is typically somewhere between 3p and 30p a mile, with around 8–10p common. It sounds trivial. The problem is the multiplier.
A worked example
Take a 3-year lease with a 10,000-mile annual allowance — 30,000 miles in total. Say you hand it back having done 38,000. That's 8,000 miles over. Here's what that costs at a few different rates:
| Excess rate | 8,000 miles over = |
|---|---|
| 8p per mile | £640 |
| 10p per mile | £800 |
| 15p per mile | £1,200 |
Illustrative only — your own excess rate is set out in your lease agreement, so check it there.
Why it catches people out
You never feel excess mileage building. There's no monthly charge, no warning light — just an odometer quietly ticking past a number you can't see. It all arrives at once, at the end, as a single bill, which is precisely why it lands so hard. The entire game is projecting your pace early, while you still have time to do something about it. (If you're not over yet, our guide to staying under your allowance is the place to start.)
What to do if you're heading over
- Ease off where you can. Even a small weekly reduction, spotted early, compounds over a long lease.
- Buy extra miles mid-term. Lease companies often sell additional mileage more cheaply than the excess rate you'd pay at the end — worth a call.
- Budget for it now. If going over is unavoidable, knowing the likely figure months ahead turns a shock into a plan.
See your excess bill before it's a bill.
Add your lease allowance, term and excess rate, and MileMind projects your likely hand-back charge every day — so a four-figure surprise becomes something you can see coming and plan around.
Download on App StoreFigures are illustrative and for general information only, not financial advice. Excess-mileage and condition charges are set by your individual lease agreement — always check your contract for the rates and terms that apply to you.
