Mileage allowance, explained
Your lease mileage allowance caps how many miles you can drive before paying steep per-mile penalties at turn-in.
What it means
Mileage allowance is the total number of miles your lease contract permits over the lease term, typically 10,000, 12,000, or 15,000 miles per year. Drive more than your allowance and you'll pay excess mileage fees at lease end, usually 15 to 30 cents per mile. A three-year lease with 12,000 miles per year gives you 36,000 total miles. Go over by 5,000 miles and you could owe $750 to $1,500 when you turn in the keys.
Why it matters
Underestimating your mileage is one of the costliest lease mistakes. Excess mileage fees are non-negotiable at turn-in, and they add up fast. If you know you'll drive more, buying extra miles upfront (usually 10 to 15 cents per mile) is cheaper than paying the penalty later. Leasing makes the most sense for predictable, lower-mileage drivers. If your commute or road-trip habits push you past 15,000 miles a year, you're often better off buying.
What to do
Estimate your annual mileage honestly before you sign. Check your current odometer against last year's records, then add a buffer. If you're unsure whether a lease fits your driving patterns, use our lease vs buy tool to model the true cost of different mileage scenarios and ownership paths.
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