How to Figure Out How Much to Pay for Mileage on a Lease
When you lease a car, the leasing company establishes allotted mileage for the vehicle. A typical lease allows for 12,000 miles per year. Going over the allotted mileage is costly; most car leases charge 15 to 30 cents per mile over the contract miles. Opting to enter into a low-allotted-mile lease contract to lower your lease payments could end up costing you more money when you return the car at the end of the lease term if you go over your miles.
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Instructions
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Total the amount of miles over the lease term. Alternatively, take the odometer reading from the vehicle and divide that number by the lease term. For instance, for a three-year lease and odometer reading of 45,919 miles, divide this number by 3 to obtain an average annual mileage of 15,306.
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Subtract the allotted mileage from the actual odometer reading to obtain the over-mileage amount. For instance, if the allotted mileage is 15,000 per year for three years or 45,000 miles, subtract this amount from the odometer reading. Continuing from the previous example, the over-limit amount is 919 miles.
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Multiply the over-limit amount by the contractual over-the-limit per-mile rate. For example, an over-limit rate of 20 cents per mile translates into $183.80 (20 cents times 919 miles) that you must pay when you return the vehicle.
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References
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