Most car leases in the U.S. come with an annual mileage limit, typically 10,000, 12,000, or 15,000 miles per year. The total miles you can drive over the entire lease term is simply the annual limit multiplied by the number of years. For example, a 36-month/3-year lease with a 12,000-mile annual limit allows for 36,000 total miles. Exceeding this limit results in excess mileage fees, which can range from $0.15 to $0.30 per mile and add up to a significant cost at lease-end.
The annual mileage limit is one of the most critical factors to negotiate before signing the lease. It's much cheaper to secure a higher limit upfront than to pay penalties later. Be realistic about your driving habits. A 10,000-mile limit may work for a retiree with a short commute, but most people find 12,000 miles to be a safer baseline. If you have a long daily drive or frequently take road trips, a 15,000-mile limit is a wise investment.
| Common Lease Mileage Allowances & Potential Penalties | Annual Mileage Limit | Total Miles on a 3-Year Lease | Typical Excess Mileage Fee (per mile) | Potential Cost for Exceeding by 5,000 Miles |
|---|
| Standard Low | 10,000 miles | 30,000 miles | $0.25 - $0.30 | $1,250 - $1,500 |
| National Average | 12,000 miles | 36,000 miles | $0.20 - $0.25 | $1,000 - $1,250 |
| High Allowance | 15,000 miles | 45,000 miles | $0.15 - $0.20 | $750 - $1,000 |
If you realize you're on track to exceed your limit, you have a few options. You can try to pre-pay for extra miles at a discounted rate, often lower than the end-of-lease fee. Alternatively, you can adjust your driving habits for the remainder of the lease. If you plan to buy the car at the end of the lease, the excess mileage penalty is usually waived, though the higher mileage will lower the car's resale value.
