Guides

Mileage Allowance – Choosing The Right Limit

Every lease agreement comes with a pre-agreed mileage allowance, which determines how far you can drive without incurring extra charges. Mileage limits typically range from 5,000 to 30,000 miles per year, and exceeding them can result in excess mileage fees that vary depending on the leasing provider.

To avoid additional costs, carefully estimate your annual mileage based on your daily commute, weekend trips, and long-distance travel. If you’re unsure, it’s better to opt for a slightly higher mileage limit at the start, as adjusting it later may not always be possible.

Lease Term & Early Termination Fees

Lease agreements typically last 24 to 48 months, and while this provides flexibility, it’s important to choose a term that suits your long-term plans. Ending a lease early can be expensive, often requiring you to pay a percentage of the remaining lease payments as a termination fee.

• Will this car meet my needs for the full lease term?
• Am I comfortable committing to the agreed monthly payments?
• What are the early termination penalties if I need to return the car sooner?

By selecting the right contract length from the start, you can avoid unnecessary costs and enjoy a stress-free leasing experience.

End-of-Lease Costs & Fair Wear and Tear

At the end of your lease, the car must be returned in good condition, considering general wear and tear. Leasing companies follow Fair Wear & Tear guidelines, which define acceptable use. However, excessive damage, such as deep scratches, dents, or worn tyres, may result in additional charges.

To avoid unexpected end-of-contract fees:

• Regularly service and maintain the vehicle.
• Address minor damage before returning the car.
• Understand what qualifies as Fair Wear & Tear under your leasing provider’s policy.

If you prefer a hassle-free experience, consider adding a maintenance package to cover repairs and servicing.