Excess Mileage Charge

A charge by the lessor or assignee for miles driven in excess of the maximum specified in the lease agreement. The excess mileage charge usually between $0.10 and $0.25 per mile. Suppose, for example, that your lease specifies a maximum of 36,000 miles and a charge of $0.15 per mile over the maximum. If you drive 37,000 miles, the excess mileage charge will be $0.15 x 1,000, or $150. Open-end leases typically do not include an excess mileage charge.

Source: Federal Reserve Board

Last reviewed October 2023