LookyLeasy · Glossary
Mileage Allowance
Mileage allowance is the maximum number of miles you can drive during the lease term without incurring per-mile penalties, usually expressed as an annual cap multiplied by the lease years. The allowance is fixed in the contract and transfers with the lease. Buyers must compare current odometer reading to remaining miles before assuming payments.
How mileage allowance is structured
Common annual caps are 10,000, 12,000, or 15,000 miles. Total allowance equals the annual figure times lease length, sometimes with a small grace buffer.
Higher allowances at signing usually mean higher monthly payments because the car is expected to depreciate faster.
Why remaining miles drive transfer value
A lease with eighteen months left but only five thousand miles remaining is very different from one with the same payment and twenty-five thousand miles left. Low remaining miles can trigger overage fees or limit how far the buyer can drive.
Sellers should disclose current mileage and allowance honestly. Buyers should calculate miles per month left versus their expected driving.
Checking allowance before you apply
Request a lease summary from the lessor showing total allowance, current mileage, and overage rate. Photos of the odometer at handoff protect both parties.
If you drive heavily, factor overage cost into your comparison with a new lease that includes a higher mileage tier.
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FAQ
Can mileage allowance increase during a transfer?
Rarely. Some lessors sell additional miles mid-lease, but policies vary and may not be available on assumed contracts.
What if the car is under mileage at transfer?
Unused miles do not typically refund to the seller. The buyer benefits from extra headroom if they stay within the cap through lease end.
Do test drives count against allowance before transfer?
All miles on the odometer count toward the contract total regardless of who drove them.
Where is mileage allowance listed?
On the lease agreement and often in the lessor portal. Customer service can confirm totals if needed.
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