The price you will pay when you go over the agreed mileage limit will be outlined in your original quotation, lease contract and official finance document. Any excess mileage is charged in pence per mile – for example, if the excess was 5p per mile, then you’d be charged £50 for going 1,000 miles over contract.
Typical mileage charges are around 10p per mile, although mileage costs vary depending on the vehicle. It’s important to double check the excess charges before setting your mileage allowance – the higher the excess charges, the more sensible it is to go for a higher-mileage contract.
It’s not recommended to go for a lower mileage allowance to reduce monthly payments, however, as the excess mileage charges will soon add up. For example, leasing a Volvo XC40 Estate for a three-year personal contract with a 30,000 mileage allowance and 6-month deposit would cost £12,515.64 overall. While a lower allowance of 24,000 miles would result in an overall cost of £11,997.42, the excess charge for going 6,000 miles over this limit would equate to £648 – actually costing you £129.78 more