The annual mileage you require will set your monthly rental. If you go beyond the contract mileage, you will pay an Excess Mileage charge

What is excess mileage on a lease contract?

One of the most asked about parts of the leasing process, from both personal and business customers, is what happens if you exceed the total contract mileage. To start at the beginning (so to speak) when you raise an enquiry with your credit broker (or finance company) you will supply an annual mileage to them so that they can create a quote. The minimum mileage on a contract hire arrangement is generally 5,000 miles per annum with a maximum mileage being circa 50,000 to 60,000 per annum. The mileage you select is directly linked to the price you pay per month for the vehicle, as the mileage influences the depreciation of the vehicle. The more mileage you require per annum, the more expensive your rental will be. One thing to note is that mileage is not checked every year, even though you are provided with an annual allowance. Mileage is only calculated at the end of the contract when the vehicle is collected.

What mileage should I select? When you are organising your next vehicle you need to accurately calculate your average monthly mileage based on commuting-distance, recreational use plus a tad spare for exceptional cases. If you multiply this figure by 12, you will then have an annual mileage to utilise for your contract. Do not select a mileage which is far too low for your requirements just because this reduces your monthly payment. This is not a prudent way to operate the contract and will create you issues at the contract cessation. Conversely, do not over-compensate the mileage. If you return a vehicle which is “under-mileage” you are not given a refund or some form of compensation. The contract you use is fixed and it is your responsibility to keep within the remit.

Can I change my contract mileage? Once you have taken delivery of the new vehicle and the contract has commenced, it will depend on the finance company as to whether or not you will be able to adjust the contract. In some cases, the finance company will allow you to amend the contract mileage once during the course of the transaction. To assist customers, we send a 12 month update, so that a customer reviews their mileage after 1 year in the car/van. If there is a big discrepancy between the contract mileage and their current mileage, if the finance company will allow it, we can ask them to amend the mileage. If you adjust the mileage, the monthly rental will adjust accordingly.

What happens if I return the vehicle over-mileage? At the end of the contract a collection agent from the finance company will appraise the car. One of the things they will note is the mileage on the vehicle. If the miles covered exceeds the contract mileage, the finance company will send you a bill. The amount you pay will depend on the excess mileage charges which were set out in your order form / finance documents shown as x pence per mile. If the excess mileage is 10 pence per mile and you cover 2,000 miles over the contract, then you will receive an excess mileage bill of £200. The only caveat to this, is that some finance companies operate tiered excess mileage where they will charge the excess mileage at one rate for the first 115% of the excess mileage but they will charge a higher rate for any mileage beyond the 115%.

To ensure you are being practical, when you are reviewing the quotations at the initial sales stage make sure you review the excess mileage as set out on the quotations / order. As noted, do not select a mileage which does not accurately reflect your circumstances, in particular if the mileage falls well below your actual requirements. Excess mileage is generally not negotiable and you will be expected to pay this in full at the end of the contract.

Back to top

Help, Assistance and Car Leasing Advice

Lease with Confidence @CarLease UK!

Browse All Manufacturers

We've got Choice in Abundance. You Pay One Fixed Cost!
Help & Leasing Advice | Lease Deals & Special Offers

Browse the latest Electric Lease Car Deals or Hybrid Lease Car Deals here @CarLease UK

Lease Car Reviews & News @CarLease UK - Helping Customers with Car Choice...

  • Choose from Every Make & Every Model
  • Personalised Factory Order Vehicles & In-Stock Leasing Deals
  • Optional Maintenance-Inclusive Contracts
  • Free Nationwide Delivery Service Included (Areas Covered)
  • Excellent Customer Service as Standard
  • Read our Trust Pilot Reviews or Read Our Blog
  • Select your Initial Rental/ Deposit from Low to High
  • Choose your Lease Terms from 24, 36 or 48 Months
  • Select your Annual Mileage from Low to High

We have over 50 Years in the Car Leasing & Automotive Industry!
Call - 01942 608 606 or Contact Us for leasing help & advice.
& Regulated By
Broker Member
Full Data
CarLease UK

CarLease UK, Car-E-Lease UK, VanLease UK and School Minibus Leasing UK
are trading names of CarLease (UK) Ltd.

Latest Special Offers - Car-e Alternative Fuel Leasing - Leasing Help & Advice - Contact Us

Browse our Popular Brands or the latest Mercedes Deals | Audi Deals | BMW Deals | VW Deals | Range Rover Deals | Nissan Deals

CarLease (UK) Ltd t/a CarLease UK, e-car lease and VanLease UK is Authorised and Regulated by the Financial Conduct Authority – our Firm Reference Number (FRN) is 706617.

Carlease (UK) Ltd t/a CarLease UK, e-car lease, VanLease UK and School Minibus Leasing UK is a credit broker and not a lender and will introduce you to a limited number of finance providers which have been carefully selected by us - please note that we do not provide independent financial advice. The finance providers that we use may make payment to us if you elect to enter into an agreement with them. The amount we receive will affect what you pay for your vehicle. The commission received may or may not be capped in accordance with that finance company’s policy. We may also receive an extra amount based on how much business we provide to that finance company, the types of products you take from the finance company and the quality of our service. For Regulated Customers you can ask us about the payments we receive from the finance company so long as this is in good time before the agreement is made. Failure to maintain rentals may result in the vehicle being withdrawn (this may affect your credit).

All images on this website are for illustrative purposes only and may not reflect the actual vehicle which is delivered to you. All prices shown are subject to change at any time and are subject to credit status and vehicle availability.

FRN 706617 | BVRLA Membership No. 1471 | Data Protection Reg. ZA088399 | VAT No. 200422089 | Registered in England 09312506

Our Registered Office - Kings Business Centre, Warrington Road, Leigh, Greater Manchester, WN7 3XG

Copyright 2021 © CarLease (UK) Ltd. All Rights Reserved

Contact Us - Call 01942 608 606

CarLease (UK) Ltd work alongside the select finance companies:

CarLease (UK) Ltd have a partnership and affiliation with: