Are you nearing the end of your car lease only to discover you’ve driven far more miles than your contract allows?
Excess mileage lease options can save you from shocking fees that often reach $0.30 per mile over your limit.
These unexpected charges can add thousands to your final bill, turning what seemed like an affordable lease into a financial burden.
But don’t panic. This guide explores three proven solutions: negotiating with your leasing company, calculating whether to pay fees or buy out your lease (see our Lease Buyout Calculator Guide), and finding alternative options that could save you money.
“Mileage limits aren’t suggestions – they’re contractual obligations with real financial consequences when exceeded.”
Standard vehicle lease agreements typically include annual mileage caps ranging from 10,000 to 13,000 miles per year. These limits aren’t suggestions – they’re contractual obligations with real financial consequences when exceeded.
When you surpass these limits, lease mileage overage costs kick in at rates between $0.18 and $0.30 per mile. This might not sound significant until you do the math.
For example, if you exceed your limit by 10,000 miles, you could face fees between $1,800 (at $0.18/mile) and $3,000 (at $0.30/mile). That’s enough to make anyone reconsider their driving habits!
It’s important to note that these charges apply at the end of your lease term, not annually. The leasing company tallies your total mileage only when you return the vehicle.
When facing excess mileage lease options, you generally have three paths forward:
| Option | Upfront Cost | Pros | Cons |
|---|---|---|---|
| Paying Overage Fees | $0.18-$0.30/mile | Simple process; no financing needed | No asset ownership; potentially expensive |
| Vehicle Buyout | Residual value + fees | Avoids mileage penalties; keeps your car | Requires financing; may exceed market value |
| Third-Party Selling | Market assessment | Could cover buyout and avoid fees | Market value fluctuations; requires approval |
The simplest option is paying the overage fees directly, but it’s often the most expensive choice with nothing to show for your money.
Buying out your lease means purchasing the vehicle at its predetermined residual value. This eliminates mileage penalties entirely since you’re keeping the car. For more ways to avoid charges, see our guide.
The third option involves selling to a third party like CarMax. If the market value exceeds your buyout price, you might cover both the buyout and avoid mileage penalties completely.
Before accepting steep fees, try to negotiate lease mileage charges with your leasing company. Here’s a proven three-step approach:
