Excess Mileage Explained

If you see a lease deal, or already have one, excess mileage charges can seem quite daunting... but in reality, you really shouldn't worry!

If you see a lease deal, or already have one, that has a set amount of miles per year (for example 8,000 miles per year on a 3 year contract), if you go over the mileage stated on the plan it can seem quite daunting.

This can cause some people to choose mileage allowances well above what they’re expecting to use. Excess mileage isn’t as bad as it seems - we’ll explain why in this guide.

When you sign (or when you signed) for your car, there will be a price per mile that you go over your agreed mileage limit. This will be shown in pence (eg. 6p per mile). It’s worth noting that the price of the excess mileage is shown excluding VAT.

Generally speaking, the higher the cost of the car per month, the higher the mileage on the contract will be. This is why some people choose to go for a deal with a lower mileage allowance (for example 5,000 miles per year) to keep their monthly payments low, but then they choose to pay the excess mileage at the end of their contract instead.

How much mileage should I choose for my lease?

We always advise that you choose a mileage allowance that reflects your driving habits as, if you go over that allowance, you will be required to pay for excess mileage. However, the choice is up to you. If you feel that you can afford to pay for some excess mileage at the end of your contract, you might choose to go for a lower mileage allowance that will make your monthly repayments slightly smaller.

I think I’ve used up all my miles for the first year already!

Don’t worry! That’s not how your mileage allowance works.

For example, if you have a 3 year contract with 10,000 miles per year. You actually have one big pot of 30,000 miles over the three years. You could use 12,000 the first year, 8,500 the next year and 9,500 in the last year.

12,000 + 8,500 + 9,500 = 30,000 miles over three years.

Excess miles = 0

I’ve definitely gone in to my excess mileage - by a lot…

You would have to rack up a serious amount of mileage before it became a costly expense. One of the biggest myths of excess mileage is that it will cost you an arm and a leg if you go in to it. That’s not the case at all - it’s generally inexpensive to pay for excess miles.

Let’s say that you went over your mileage allowance by 2,500 miles - this can seem like a worrying prospect as it sounds like a lot of miles to be driving outside of your agreed mileage allowance. Let’s take a look at how much it could theoretically cost you.

If the excess stated in your agreement is 6p per mile, and you exceed your mileage allowance by 1,000 miles, you would only be charged £60 at the end of your contract. So, if you exceed it by 2,500 miles, you would only be charged £150 at the end of your contract.

Suddenly, those excess miles don’t seem quite as scary. Yes, pennies do add up, but if you keep an eye on your mileage, you should never have to pay too much at the end of your contract.

Where can I find the excess mileage charge on a deal?

When you’re looking at a deal on our website, you can find the excess mileage charge in the Terms & Conditions section on the page. Alternatively, when you get a quote from Stable Vehicle Contracts, you’ll be able to see the excess mileage charge on your quote.

If you’re already in a contract, don’t use the website to check your excess mileage charge as this will change as new deals and offers become available. It’s always best to refer back to your contract.