How to Choose the Right Lease Mileage

Updated October 2025 | Reading time: 6 minutes

Picking the right mileage allowance is one of the most important decisions when leasing a car. Too low, and excess charges can add up. Too high, and you could pay for miles you don’t use. Here’s how to make the right choice first time.

How Mileage Affects Monthly Cost

Leasing is based on the car’s value at the end of the contract. Higher mileage reduces future value, so the monthly rental can increase when:

• You choose a higher annual mileage allowance (e.g., 10k–20k)
• You extend the contract from 2 to 4 years

Tip: The jump in cost from 8k → 10k is usually smaller than from 10k → 12k or 15k.

Common Mileage Allowances

• 6,000 miles per year — low usage, mainly urban
• 8,000 miles per year — average commuter
• 10,000–12,000 miles — common for mixed driving
• 15,000–20,000+ miles — frequent motorway miles

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How to Estimate Your Mileage Accurately

1. Start with your commute distance × working days per year
2. Add school runs, weekly errands, gym, hobbies etc.
3. Include weekend trips and holiday mileage
4. Add a buffer for lifestyle changes (job move, house move, new activities)

A safe rule: Add 10–20% safety margin if in doubt.

What If You Go Over Your Mileage?

At the end of the lease, the funder checks your odometer. If you exceed your total allowance, you’ll be charged an excess mileage rate per mile (shown in your agreement).

Example: If your contract is 3 years × 10,000 miles per year → 30,000 miles total Return the car with 33,500 miles → 3,500 miles over 3,500 × £0.07 = £245 charge

Want to avoid that? Adjust your mileage mid-lease (if available) — talk to us early.

Can I Change Mileage During My Contract?

Many funders allow in-life mileage amendments if your circumstances change. This can work out cheaper than paying excess charges later.

We’ll handle this for you — just get in touch.

Best Practice Mileage Tips

• ✔ Track your mileage every few months
• ✔ Add a buffer if your plans may change
• ✔ Consider holidays and seasonal travel
• ✔ Ask about mid-lease amendments
• ✔ Don’t pick the lowest figure just to reduce the monthly

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Useful Pages

• Car Leasing Explained
• Frequently Asked Questions
• Search by Manufacturer

Frequently Asked Questions

Is it better to underestimate or overestimate?

Overestimating slightly is safer — excess mileage charges can add up if you go significantly over.

What happens if I switch jobs and drive more?

Contact us — you may be able to adjust your mileage allowance during the agreement.

Are EV mileage allowances different?

No, the structure is the same — though EVs may have lower running costs if you drive more miles.

Conclusion

Choose a realistic mileage that reflects your driving habits, with a small buffer for change. Unsure? We’ll calculate a personalised recommendation based on your commute and lifestyle.

Get Personalised Mileage Advice