A Guide to Leasing Mileage Allowances

Whether you’re looking to lease or buy a vehicle an important factor to consider when making decisions is how many miles you expect to be driving as this can affect the performance of the vehicle, how often you need to fill up the fuel and ultimately the money you’re spending on the vehicle.

Leasing Mileage

When you decide to lease a vehicle you will agree to a number of conditions including the vehicle model you will receive, the contract length, who will be responsible for the maintenance and the annual mileage allowance and overmiles cost should you go over this allowance.

If you decide a lease is the right choice for your next vehicle then you will need to agree on what your annual mileage allowance will be. Here at Xcite Car Leasingour Leasing Consultants will work with you to figure out what mileage will be best for you and to do this will take into account:

  • Your current mileage useage
  • Any lifestyle changes you expect to occur that will impact your mileage during the lease
  • The financial implications of increasing or decreasing mileage on the lease payments and the affordability of this for you

If you are interested in leasing but are unsure of your mileage needs then give us a call on 0330 221 0000 and speak to one of our Leasing Consultants or request a call back via the purple phone in the bottom left of your screen and we can help you figure it out.

Amending Your Lease Mileage

Even though you agree to a mileage allowance when signing the finance documents this does not mean you can’t amend it.

Lease agreements can last between one and five years and like us our funders understand that a lot can change in your circumstances during this time that might impact your mileage needs.

Most of our funders will look at amending the mileage on your agreement provided you are not in the first 12 months of your agreement. This is because they like to have an accurate estimate of your annual mileage to avoid having to make multiple amendments to the agreement.

The majority will also not allow amendments to your mileage allowance in the last six months of the contract either.

Please note that amending your mileage allowance could impact your monthly rental costs, though it is not guaranteed that lowering your mileage will reduce your monthly rentals.

Before any mileage change is put in place your funder will provide you with a quote that you will then need to sign to agree to the contract amendment.


Minimum and Maximum Mileage Allowances

To help you decide whether leasing is suitable for your mileage needs we’ve spoken to each of our funders in order to see their minimum and maximum allowances so that you can see whether your expected use will fit within their ranges.


The minimum annual mileage that ALD will allow you to have is 5,000 miles.

ALD offer maximum mileage for the duration of the lease rather than a maximum annual mileage, and so it will depend on the contract length how high your annual mileage can be. For a petrol, petrol hybrid or electric vehicle ALD offer a maximum total mileage of 120,000 and for a diesel or diesel hybrid car it’s 160,000 miles. Diesel vans have a slightly higher maximum mileage at 180,000. 


For Alphabet, the minimum annual mileage you can have is 6,000 miles.

Alphabet similarly offers a maximum total mileage, though this does not vary depending on your engine type and is 150,000 miles for any lease they offer.


Arval allow you to have a minimum of 5,000 miles per annum.

For Arval, the maximum total mileage you can have for the duration of any lease agreement is 160,000 miles if you are leasing a car and 180,000 for vans.


Leasys have advised us that there is no annual minimum mileage but that there must be a total of at least 10,000 miles over the duration of the lease. If you opt for a two year lease then the minimum you will be able to have annually is 5,000 but if you have a longer lease length then you can have a lower annual mileage.

Leasys offer a maximum total mileage allowance of 120,000 miles for a car. But for a light commercial vehicle, like a van, they can offer up to 150,000 miles for the duration of the contract.


LeasePlan allow you to have a minimum annual mileage of 6,000 miles

LeasePlan offers a maximum of 50,000 miles annually. However this is only up to a total of 150,000 miles for the duration of the contract so if your lease is for longer than three years you will not be able to have an annual mileage of 50,000.


Lex allows you to have a minimum of 5,000 miles annually.

For Lex the maximum number of miles that you can travel varies dependent on the type of vehicle and the fuel it uses. Petrol or electric cars have a maximum of 120,000 miles over the full duration of the lease, while for a diesel car it is 150,000. Vans have a maximum of 150,000 miles if they are electric or petrol and 180,000 miles if they are diesel.

Mobilize Financial Services

Mobilize Financial Services has advised that the minimum annual mileage they can offer is 5,000 miles.

The maximum mileage allowance for the duration of the contract is 120,000 miles. This means the maximum annual mileage will vary depending on the contract length.


With Novuna you are allowed a minimum of 6,000 miles annually.

Novuna differentiates between petrol and diesel engines in the maximum mileage they allow you to have. For petrol vehicles it’s a total contractual mileage of 120,000 miles and for diesel it’s 150,000 miles.


Santander has advised that the minimum annual mileage is 5,000 miles. 

They also look at the total mileage over the duration of the contract rather than a maximum annual allowance. The maximum total mileage is 150,000 over the life of the contract.

Wessex Fleet

Wessex Fleet provide you with a minimum mileage of 8,000 per annum.

The company will advise depending on the model of vehicle you are looking to lease what the maximum mileage allowance is as they take into account the vehicle and fuel type.

As you can see the lowest mileage that most of our funders offer a minimum annual mileage of between 5,000 and 8,000 miles. If you drive less than this then you can still lease but you will receive no additional benefit for remaining below the contracted mileage.

What Happens If You Go Over the Mileage Allowance on a Lease Agreement?

As mentioned above when you sign your lease agreement is the overmiles charge.

The overmiles charge is the cost to you if you exceed the agreed upon mileage allowance. This charge is only applied at the end of the lease once the vehicle has been collected and is calculated based on how many miles, if any, you have gone over the mileage allowance for the entire agreement rather than annual readings.

If you do go over the mileage allowance on your lease vehicle then you will usually be charged in pence per mile and invoiced this once the collection report has been reviewed by your funder.

It’s important to note that if you opt for a maintenance package on your lease then you will have two overmiles charges; one for the finance agreement and one for the maintenance agreement. So if you go over the contracted mileage you will need to pay two charges rather than just the one. 

If you want to discuss your mileage needs or talk to us about leasing in general then give us a call on 0330 221 0000 or head back to our guides homepage to see more helpful articles.

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