Excess mileage charge: What does it mean?

If the agreed annual mileage limit is exceeded, an excess mileage charge must be paid, calculated in pence per mile. Allows for higher usage.

Excess mileage charge: The long answer

Excess Mileage Charge refers to the additional fee that UK drivers may have to pay if they exceed the agreed mileage limit on their car lease or hire contract. When leasing or hiring a car in the UK, drivers typically agree to a specific mileage allowance for the duration of the contract. This mileage limit is set based on the expected average usage of the vehicle.

However, if drivers exceed this agreed mileage limit, they will be subject to an excess mileage charge. This charge is typically calculated per mile and can vary depending on the specific terms of the lease or hire agreement. The excess mileage charge is meant to compensate the leasing or hiring company for the additional wear and tear on the vehicle and the potential decrease in its resale value due to the higher mileage.

It is important for UK drivers to carefully consider their anticipated mileage requirements before entering into a car lease or hire agreement to avoid incurring excessive charges. If drivers expect to exceed the agreed mileage limit, they may negotiate a higher mileage allowance with the leasing or hiring company upfront or explore alternative options that better suit their driving needs.