Depending on your contract annual mileage allowance, look at the table above and see if you are over or under your monthly allowance.
That gives you your average miles per month.
#Hvfcu car loan calc manual
There’s the manual calculation method: You look at the mileage on your car and and divide by the number of whole months you’ve been leasing. Unfortunately many people find themselves exceeding their mileage limits and don’t know what to do.īuy Your Next Car Online – We Ship it to You How can I know if I am exceeding my mileage limit if I’m in the middle of my lease? Here’s a little table that translates annual mileage to monthly mileage. If you drive 2000 more miles than your total allowance for the lease, you would be responsible for paying 2000 x $0.15 = $300 at lease-end when you return your car. These rates are specified in your lease contract and are not negotiable.įor example, for a Honda Accord the rate is $0.15. Some luxury models charge $0.30 per mile. Mid-priced cars are charged at $0.20 per mile and higher-priced cars at $0.25 or higher. Lower priced cars are charged at $0.15 per mile. You pay for that extra depreciation at a per-mile rate that varies by car company and vehicle model. The charges are simply fair compensation to the lease company for the unexpected higher depreciation and lower lease-end residual value (due to the extra miles) than you agreed to in the original lease contract. What happens if I exceed my mileage limit?Įxcess miles charges are not penalties as many people think. It’s the total miles at lease-end that count. It doesn’t mean the lease company is going to be checking to see if customers are meeting their monthly or annual allowances. Lease mileage allowances are expressed as annual miles, such as 12,000 miles per year, which equates to 1000 miles per month, or 36,000 miles total for a 36 month (3 year) lease. A car that is expected to be driven 36,000 miles during a 36 month lease will have a higher lease-end value, and a lower lease payment, than the same car that is expected to be driven 45,000 miles. Lease payments are based on expected value at lease-end (see Lease Payment Formula). The more miles that are driven, the more a vehicle loses in value to depreciation. There are a number of options that can be taken if this situation occurs.įirst, let’s understand why leases have mileage limitations.Ĭars depreciate in value as they are driven and get older.
Many people who lease cars, find themselves exceeding their mileage limit - or maybe don’t discover it until lease-end when they return the car to the lease company. Over Miles on Car Lease – What to Do If you are exceeding the mileage allowance on your car lease, you have options
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