1. What is Mileage Allowance?

Mileage allowance is the total number of miles you're allowed to drive during your lease term without incurring additional charges. It's calculated by multiplying your annual mileage limit by the number of years in your lease.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( \text{Annual Limit} \) — Maximum allowed miles per year
• \( \text{Lease Term} \) — Duration of lease in years

Explanation: The calculation gives you the total mileage you can drive over the entire lease period without penalty.

3. Importance of Mileage Allowance

Details: Knowing your total mileage allowance helps you plan your vehicle usage and avoid excess mileage fees at lease end, which can be significant (typically $0.15-$0.30 per mile over).

4. Using the Calculator

Tips: Enter your annual mileage limit (typically 10,000, 12,000, or 15,000 miles/year) and lease term (usually 2-4 years). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What happens if I exceed my mileage allowance?
A: You'll pay an excess mileage charge per mile over your allowance, specified in your lease contract.

Q2: Can I increase my mileage allowance mid-lease?
A: Some lessors allow this, but it's usually cheaper to negotiate higher mileage upfront.

Q3: Are there ways to reduce mileage charges?
A: Some options include lease extensions, early termination, or purchasing the vehicle.

Q4: Does unused mileage carry over?
A: Typically no - unused miles don't carry over year to year or reduce your total obligation.

Q5: How accurate should my mileage estimate be?
A: It's better to slightly overestimate than underestimate, as excess charges can add up quickly.