By Austin D., Lease Solutions
At turn-in, every mile over your allowance is billed at the excess-mileage rate written in your lease contract — typical industry rates run $0.15 to $0.30 per mile — plus a disposition fee and whatever the wear-and-tear inspection finds. All of those are turn-in charges: buy out the lease instead and there's no turn-in — at most leasing companies, the overage bill simply never exists.
If you're watching your odometer creep past the allowance in your lease, you already know the feeling: every errand costs money now. It's the most common reason drivers call us, and it's also the situation where the math is most worth doing carefully — because the overage bill is real, but it's also optional. It only exists if you turn the car in.
How Excess-Mileage Charges Work
Every lease includes a mileage allowance — commonly written as miles per year, totaled over the term. Drive past it and, at turn-in, the leasing company bills you for every extra mile at the excess-mileage rate printed in your contract.
We can't tell you your rate — your contract can. Look for a section titled something like “Excess Mileage” or “End of Lease Charges.” Typical rates in the industry run $0.15 to $0.30 per mile, but the number in your contract is the only one that matters. While you're in there, find two more numbers: the disposition fee (a flat turn-in charge many leases carry) and the standard for excess wear and tear, which is billed after the turn-in inspection.
The Math, Illustrated
Say a driver is 8,000 miles over with a $0.25/mile rate and a $395 disposition fee — illustrative numbers; plug in your own from your contract:
- 8,000 miles × $0.25 = $2,000 in mileage charges
- Disposition fee = $395
- Wear and tear = whatever the inspection finds — priced by them, after you've handed the car back
That's roughly $2,400 due at turn-in, before wear and tear — and here's the part that stings: you pay it and walk away with nothing. No car, no equity, and a new car payment still ahead of you, at today's prices.
The Bill That Never Exists
Now the alternative. When you buy out your lease, there is no turn-in — so there is no mileage charge, no disposition fee, and no wear-and-tear inspection. Those charges aren't reduced or negotiated away — at most lessors they simply never come due, because they're turn-in charges and you never turned in. The money that would have gone to the overage bill goes toward a car you keep.
And there's a quieter advantage: the leasing company's buyout price was fixed in your contract years ago, based on a mileage prediction you've now exceeded. The extra miles lower what the car would fetch at auction — but they don't change your buyout price. Meanwhile the car may still be worth more than that buyout to you, keeping it — which is exactly what a book value shows. Read more on how that works in car equity and your lease.
Run Your Own Keep-vs-Walk Numbers
This is exactly the comparison our buyout calculator was built for. Enter your miles over, your contract's per-mile rate, and your disposition fee, and it shows the cost to walk away side by side with an estimated Keep-It payment for the same car. (Payments are estimates — your final terms are set by your lender after one credit application. And checking costs nothing: no sign-up, no credit pull.)
A note on honesty, because it cuts both ways: the keep-vs-walk math doesn't always favor keeping. If your payoff is far above what the car is worth, buying out can be the wrong move even with a big overage bill on the other side. If that's your situation, we'll tell you — for free. What matters is that you decide with both numbers in front of you, not with a turn-in date breathing down your neck.
What to Do This Week
- Pull out your lease contract and find your excess-mileage rate, allowance, and disposition fee.
- Check your odometer and project where it'll be at lease end.
- Run the comparison on the calculator with your real numbers.
- If keeping looks even close, call (208) 825-3090 — a specialist will pull your exact payoff and run the real math with you, with no credit pull to see your estimate.
Common Questions
What happens if I go over my lease mileage limit?
If you turn the car in, every mile over your allowance is billed at the excess-mileage rate written in your lease contract — typical rates run $0.15 to $0.30 per mile, but your contract sets the real number. If you buy the car out instead, the car becomes yours and mileage charges no longer apply.
Do over-mileage fees apply if I buy out my lease?
Generally no. Excess-mileage and wear-and-tear charges are turn-in charges, and when you buy out the lease there is no turn-in — at most leasing companies the overage bill simply never exists. Confirm with yours.