This is a common question from lease owners and it’s a good one to know. You may have gotten that job a few miles further from home or are wondering if you should drive or fly on your upcoming family vacation but worry about going over your mileage allowance. By understanding what happens if you do go over and keeping a tab on your current mileage, you’ll be able to fret less about going over your lease mileage.
To start, lease terms are agreed upon based upon the value of the vehicle after the estimated depreciated residual value with an estimation of mileage during that time. A common lease mileage allowance is 12,000 miles per year which equals 1,000 miles per month. If at the end of your lease you have gone over the agreed upon mileage you will pay a set fee for every mile over to make up for the depreciation in the vehicles residual value. This fee will be in your lease agreement and is usually between $0.15-$0.30 cents per mile based on your vehicle.
Remember, the mileage only matters when you turn in your vehicle. If your mileage allowance is 36,000 miles for 3 years, it doesn’t matter if you put 3000 miles in one month and 50 in another as long as the total does not exceed 36,000 when you turn your vehicle in at the end of the lease.
Using the example above, here’s a quick calculation for lease mileage charges:
So if you go over 3000 miles, you would have to pay $450 at lease turn in based on a 15 cent mileage overage fee (plus applicable state taxes).
It can be hard to estimate how many miles you are going to be putting on your vehicle, especially for first time lease owners. To avoid going over your mileage allowance you should be aware of your driving habits and mileage trend. If in the first six months, you drive 7,000 miles on a 3-year, 36,000 mile lease, you are averaging about 1,166 miles per month and are likely to exceed the mileage allowance at the end of 3 years. By taking action early, you can make small changes to avoid using excess mileage.
Our sales team at Burns Honda in South Jersey near Cherry Hill, Voorhees, Mount Laurel, Medford, and Philadelphia can help you decide if a lease is right for you. We offer great lease specials on the Honda Accord, Civic, CR-V, Pilot and all new Honda models.