Leasing a car can be a great way to get behind the wheel of a new vehicle without the commitment of a long-term purchase. However, one of the biggest concerns for many people who lease a car is the possibility of going over their allotted miles. If you're not careful, exceeding your mileage limit can result in hefty fees and charges. In this article, we'll take a closer look at what you need to know about going over miles on a lease.
Understanding Mileage Limits
Before we dive into the specifics of what happens when you go over your mileage limit, let's start by discussing what mileage limits are and how they work. When you lease a car, you'll be given a set number of miles that you're allowed to drive over the course of your lease term. This number is usually somewhere between 10,000 and 15,000 miles per year, but it can vary depending on the terms of your lease.
It's important to keep in mind that your mileage limit is not a suggestion or a guideline—it's a hard and fast rule that you'll need to adhere to if you want to avoid fees and charges. If you exceed your mileage limit, you'll usually be charged a certain amount per mile that you've gone over. This fee can vary depending on the terms of your lease, but it's usually somewhere between $0.10 and $0.25 per mile.
What Happens When You Go Over Your Mileage Limit?
Excess Mileage Fees
As we mentioned earlier, the most common consequence of going over your mileage limit is that you'll be charged excess mileage fees. These fees can add up quickly, especially if you've gone significantly over your mileage limit. For example, if your lease allows you 12,000 miles per year and you end up driving 15,000 miles in a year, you'll be charged for the extra 3,000 miles at the rate specified in your lease. If that rate is $0.15 per mile, you'll end up owing $450 for those extra miles.
It's important to note that excess mileage fees are usually non-negotiable. If you signed a lease agreement that specifies a certain fee per mile for going over your mileage limit, you'll be responsible for paying that fee if you exceed your limit. Some car dealerships or leasing companies may allow you to pay the excess mileage fees in installments, but you'll still need to pay them in full eventually.
Early Termination Fees
Another consequence of going over your mileage limit is that you may end up wanting to terminate your lease early. If you're nearing the end of your lease term and you've already exceeded your mileage limit, you may decide that you want to turn in your car early and start fresh with a new lease. However, terminating your lease early can come with its own set of fees and charges.
Most lease agreements include an early termination fee that you'll need to pay if you decide to end your lease before the agreed-upon term is up. This fee can vary depending on a number of factors, such as how much time is left on your lease, how much you've already paid, and the residual value of the car. If you're considering terminating your lease early because you've gone over your mileage limit, be sure to talk to your dealership or leasing company about what fees you can expect to pay.
Tips for Avoiding Excess Mileage Fees
Now that you know what can happen if you go over your mileage limit, you're probably wondering what you can do to avoid those excess mileage fees. Here are a few tips to help you stay within your mileage limit and avoid extra charges:
Be Realistic About Your Driving Habits
When you're signing a lease agreement, it's important to be honest with yourself about how much you'll be driving. If you know that you have a long commute or you frequently take road trips, it may be worth paying a little extra each month for a lease with a higher mileage limit. On the other hand, if you mostly use your car for short trips around town, you may be able to get away with a lower mileage limit.
Consider Paying for Extra Miles Up Front
If you know that you're likely to exceed your mileage limit, you may be able to save money by paying for extra miles up front. Some leasing companies allow you to purchase additional miles at a discounted rate when you sign your lease agreement. This can be a good option if you know that you're going to be driving a lot more than your mileage limit allows.
Take Advantage of Public Transportation
If you live in an area with good public transportation, you may be able to save money on your lease by using public transit instead of driving. This can help you stay within your mileage limit and avoid paying extra fees for going over. Plus, it's better for the environment!
Conclusion
Going over your mileage limit on a lease can be a costly mistake, but it's one that can be avoided with a little bit of planning and foresight. By being realistic about your driving habits, considering paying for extra miles up front, and taking advantage of public transportation, you can stay within your mileage limit and avoid extra charges. And if you do end up going over your mileage limit, be prepared to pay the excess mileage fees or consider terminating your lease early if it makes financial sense for you.
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