Mileage limits: how to pick one before you sign

Somewhere on your dashboard is a number that will matter a great deal on the day you return a leased car: the odometer reading. Asking how many miles you should get on a lease is really asking how well you know your own driving. Most people guess, and most guesses are based on a typical week rather than a typical year. The mileage limit you choose deserves the same attention as the monthly payment.

Start with your own records

The most reliable estimate comes from what you have already driven. Look at the odometer readings on past oil change receipts, service invoices, or your last registration renewal. The difference between two readings a year apart is your real annual mileage, including the trips you forgot about.

If you do not have records, build the number from pieces. Multiply your round-trip commute by the days you actually go in, then add weekends, errands, and school runs. Add out-of-town trips separately, since a single long drive can use a noticeable share of a year's allowance. Finally, think about the whole term rather than this year: a new job, a move, or a child starting school can change your driving quickly.

What happens if you go over

When you return the car, the leasing company compares the final odometer reading to the total miles allowed over the term. Every mile above that total is charged at the per-mile rate written in your contract. That rate is set when you sign, so you can know it in advance.

The charge comes due at the end, when you are no longer making payments and may be starting a new car deal. It can arrive as a single bill. If you buy the car at the end of the lease instead of returning it, excess-mileage charges usually do not apply, but ask how your contract handles that case.

High mileage also shows up in the turn-in inspection in less obvious ways. Tires, brakes, and windshields wear faster on a car that has covered more ground, and the inspector judges them against the lessor's own wear standards. Ask for a copy of those standards at signing so you know what counts as normal. It is far easier to plan for them from the first month than to discover them on the last day.

Buying miles now versus paying for them later

Most leases offer several mileage tiers. Choosing a higher limit raises the monthly payment because the car is expected to be worth less at the end. Choosing a lower one reduces the payment but increases the chance of an end-of-term bill.

Some lessors also let you buy extra miles at signing, priced per mile. Compare that price with the per-mile charge for going over at turn-in, since they are often different. Also ask whether unused miles earn anything back. Many contracts give nothing for driving less than the limit, so buying far more than you need has a cost of its own.

When an offer does not list a mileage limit

A monthly payment without a mileage limit is an incomplete offer. You cannot compare it to anything, because the same car can have very different payments at different limits. Advertised lease deals that leave the limit out, or bury it in fine print, deserve extra questions before you take them seriously.

On this site, lease offers are published with their mileage limit alongside the term, due at signing, and monthly payment, so you can compare like with like. You can browse lease offers from dealerships across Los Angeles or from independent auto brokers and see the limit next to each price. If a company quotes you privately without one, ask for it in writing. Our first guide explains how to read a car offer before you call, including the other fields that should never be missing.

Questions to settle about miles

Before you agree to a lease, get clear answers to the questions below. Each one affects what you will pay at the end, not just what you pay each month. Get the answers written into the paperwork, not just spoken at the desk.

1. 1Is the mileage limit counted per year or as a single total across the whole term?
2. 2What is the charge for each mile over the limit, and where does it appear in the contract?
3. 3What do the monthly payment and due at signing become if I raise the limit by one tier?
4. 4Can I buy extra miles now, and at what price per mile?
5. 5If I drive less than the limit, do I receive any credit for unused miles?
6. 6If my driving changes partway through, can the limit be adjusted before the term ends?

Picking your number

Take your honest yearly estimate and add a margin for the unexpected. Then compare the payment at that limit with the payment at the next tier down, and weigh the difference against the overage charge you might face. The goal is not the lowest payment on paper but a limit that matches the way you actually drive.

Treat this as general information, not legal, tax, or financial advice, and have the company confirm your mileage limit and every other term before you sign.

General information, not legal, tax or financial advice. Confirm the final terms with the company before you sign.