1. What is Lease Miles Overage?

Lease miles overage is the charge you incur when you drive more miles than your lease agreement allows. This calculator helps you estimate the potential cost if you exceed your allowed mileage.

2. How Does the Calculator Work?

The calculator uses the lease overage formula:

Where:

• \( \text{Actual Miles} \) — Miles you've actually driven
• \( \text{Allowed Miles} \) — Miles included in your lease agreement
• \( \text{Per Mile Charge} \) — Cost per mile over your allowance

Explanation: The calculation only applies if you've driven more miles than allowed. The charge is based on the difference multiplied by the per-mile rate.

3. Importance of Calculating Overage

Details: Knowing your potential overage charges helps in lease-end planning and deciding whether to purchase extra miles in advance (often cheaper than paying overage fees at lease end).

4. Using the Calculator

Tips: Enter your actual driven miles, the total miles allowed in your 3-year lease, and the per-mile charge specified in your lease agreement.

5. Frequently Asked Questions (FAQ)

Q1: How can I find my lease's per-mile charge?
A: Check your lease agreement documents - it's typically listed in the "Excess Mileage" or "Mileage Allowance" section.

Q2: Is it better to pay for extra miles upfront or as overage?
A: Many leases offer cheaper rates for purchasing extra miles upfront (e.g., $0.15/mile) versus paying overage at lease end (e.g., $0.25/mile).

Q3: What's a typical mileage allowance?
A: Standard is 12,000 miles/year (36,000 for 3 years), but leases can range from 10,000 to 15,000 miles/year.

Q4: Can I negotiate overage charges?
A: Sometimes - dealers may be willing to waive or reduce fees if you're leasing another vehicle from them.

Q5: Does overage affect my lease-end purchase option?
A: No, but high mileage will reduce the car's residual value if you choose to buy it at lease end.