Over Contract Mileage: What It Is and How To Avoid It
When leasing a vehicle, the contract typically outlines a set number of miles that you are allowed to drive over the course of the lease. This is known as the „contract mileage.“ If you exceed this mileage, you may be charged for every mile over the limit at the end of your lease.
This can be a frustrating and unexpected expense for many drivers, but there are ways to avoid it. Here`s what you need to know about over contract mileage and how to prevent it.
What is Over Contract Mileage?
Over contract mileage occurs when you drive more miles than what was agreed upon in your lease contract. For example, if your lease contract allowed for 10,000 miles per year and you drove 12,000 miles in a year, you would be over contract mileage by 2,000 miles.
If you are over contract mileage at the end of your lease, you may be charged a fee per mile over the limit. These fees can add up quickly and can be a significant expense if you have driven a lot of extra miles.
How to Avoid Over Contract Mileage
There are several ways to avoid over contract mileage and the associated fees. Here are some tips:
1. Calculate your expected mileage: Before signing a lease, calculate how many miles you expect to drive each year. Make sure the number is within the contract mileage limit to avoid fees at the end of the lease. If you are unsure of your expected mileage, consider a higher limit to be safe.
2. Limit your driving: If you find yourself driving more than expected, try to limit your driving as much as possible. Carpool, use public transportation, or walk/bike whenever feasible. You can also limit your driving by planning your trips more efficiently, combining errands into one trip instead of multiple trips.
3. Consider a longer lease term: If you know you will be driving more than the contract mileage limit, consider a longer lease term with a higher mileage allowance. This will give you more flexibility and reduce the risk of over contract mileage.
4. Negotiate with the dealership: If you are close to exceeding your contract mileage limit, contact your dealership and negotiate a solution. They may be able to offer a mileage extension or a lower fee for the extra miles.
5. Buyout your lease early: If you are nearing the end of your lease and know you will be over contract mileage, you can buyout your lease early. This will allow you to avoid the extra fees and give you more flexibility in terms of mileage.
Conclusion
Over contract mileage can be an unexpected and costly expense for many drivers. However, with careful planning and attention to your driving habits, you can avoid these fees and enjoy a hassle-free lease experience. Remember to calculate your expected mileage, limit your driving when possible, and negotiate with your dealership if necessary. By following these steps, you can avoid over contract mileage and enjoy your leased vehicle to the fullest.