When you lease a car, you agree to do a set amount of mileage each year. Your lease contract will specify a maximum mileage cap, usually between 5,000 and 20,000 miles per year. The annual mileage allowance allows the leasing company to estimate the resale value of the car once the lease period ends. The more the mileage allowance, the higher the cost and if you go over, you’ll be charged for every mile that exceeds the limit.
This charge can vary from a couple of pence to £1 per mile, depending on the vehicle model and leasing company policy. The leasing company will confirm their charges in your contract, but the average penalty is around 10p for every mile over the maximum mileage cap.