Disclaimer: This site is an independent editorial resource providing general information and estimates about new-car buy vs. lease financial decisions. It is not financial, tax, or legal advice. Tax treatment of business vehicle expenses, EV credits, and loan-interest deductions under the One Big Beautiful Bill Act (OBBBA) varies by individual circumstance - consult a licensed tax professional before relying on any figures for a filing decision. Calculator outputs are estimates based on the inputs provided and current market conventions; actual dealer quotes, APRs, money factors, residuals, and residual buyout prices may vary. This site is not affiliated with any manufacturer, captive finance arm, bank, insurance company, or extended warranty provider. All trademarks are property of their respective owners. Tax rules, APR tiers, and lease terms change frequently. Data verified April 2026. Confirm specifics with your lender, dealer, or CPA.

Lease Penalties / April 2026

Lease Mileage Overage Fees: What $0.15, $0.25, and $0.30/mi Actually Costs

Mileage overage fees are the single biggest lease “gotcha.” They are easy to ignore at signing when you are focused on the monthly payment, and they arrive as a large lump-sum bill at turn-in. The math is simple - the problem is that most lessees do not do it.

2026 overage rates by captive

Captive Finance ArmBrandRate per Mile
Honda Financial ServicesHonda$0.15/mi
Honda Financial ServicesAcura$0.20/mi
Toyota Financial ServicesToyota$0.15/mi
Toyota Financial ServicesLexus$0.25/mi
Subaru Motors FinanceSubaru$0.15/mi
Nissan Motor Acceptance Corp.Nissan$0.15/mi
Nissan Motor Acceptance Corp.Infiniti$0.25/mi
Hyundai Motor FinanceHyundai / Genesis$0.20/mi
Kia Motors FinanceKia$0.20/mi
Ford CreditFord$0.20/mi
Ford CreditLincoln$0.25/mi
BMW Financial ServicesBMW / MINI$0.25/mi
Mercedes-Benz Financial ServicesMercedes-Benz$0.25/mi
Audi Financial ServicesAudi / Volkswagen$0.25/mi
Porsche Financial ServicesPorsche$0.30/mi

Indicative, April 2026. Confirm rate in your lease contract at signing.

Overage cost at various excess levels

Total Excess Miles (3-yr lease)At $0.15/miAt $0.20/miAt $0.25/miAt $0.30/mi
3,000 mi$450$600$750$900
6,000 mi$900$1,200$1,500$1,800
9,000 mi$1,350$1,800$2,250$2,700
12,000 mi$1,800$2,400$3,000$3,600
18,000 mi$2,700$3,600$4,500$5,400
24,000 mi$3,600$4,800$6,000$7,200

Buying miles upfront

Most captives let you pre-purchase additional mileage at lease signing at $0.05 to $0.10 per mile - a significant discount from the end-of-lease overage rate. The additional mileage is built into the residual calculation, which effectively raises the depreciation fee slightly but at a much lower total cost than paying overages.

Example: You expect to drive 15,000 miles per year but the standard package is 12,000. Pre-buying 3,000 extra miles per year at $0.08 per mile: $240 upfront (or $6.67 per month). Those same 9,000 miles at turn-in at $0.25/mile: $2,250. The pre-buy saves you $2,010. If you do not end up using the extra miles, you’ve overpaid $240 - the maximum downside.

What if you are under mileage?

Unused miles have no cash refund value at lease-end. The captive retains the upside of a lower-mileage vehicle (worth more than the residual assumed). This is one reason why low-mileage lessees should always check the buyout math: the car is often worth more than the residual, creating a genuine purchase opportunity.

A practical example: residual $22,000 on a car you drove 25,000 miles total instead of 36,000. KBB for that trim at 25k miles: $25,500. Buyout at $23,500 (residual + option fee + tax) is $2,000 below market. Buy out, sell privately for $25,000, net $1,500 gain minus transaction costs.

Mileage Overage FAQ

Can I buy miles back after signing a lease?
Generally no, not at the pre-buy rate. Once the lease is signed, additional miles simply accumulate and are charged at the end-of-lease overage rate. A small number of captives have mid-lease mileage adjustment programs, but they are the exception. Some dealers will attempt to charge you to 'add miles' mid-lease via a lease amendment - this is unusual and the rate will not be as favourable as the pre-buy rate. The best strategy is to estimate honestly before signing.
Is the overage rate the same on short leases (24-month)?
The per-mile overage rate is typically the same regardless of lease term. A 24-month lease at 10,000 miles per year that goes 5,000 miles over would owe the same per-mile rate as a 36-month lease with the same overage. However, 24-month leases typically use higher residuals, meaning the monthly payment is slightly higher but the overage exposure per year is the same.
Can I buy out the lease to avoid overage fees?
Yes. If you buy out the lease, mileage overage is not charged because you are taking ownership. This can make sense if you have significant mileage overage and the buyout price is still below or near market value. The buyout price is fixed at the contract residual and does not change based on actual mileage. Compare: (residual + option fee + tax) versus (market value of vehicle at your actual mileage). See the lease buyout math page for the full comparison.
What if my lease says 'up to X miles' - is there a grace band?
Some leases include a small grace band (typically 100 to 500 miles) before overage fees kick in - this is explicitly stated in the lease contract if it exists. Most captives do not offer any grace band; overage charges apply from mile 1 over the allowance. Read your specific lease contract section on mileage carefully. At turn-in, mileage is measured precisely from the odometer.
Do hybrid or plug-in vehicles count mileage differently?
No. Odometer mileage for lease purposes is total miles driven, regardless of powertrain. Whether the vehicle ran on electricity, gasoline, or a combination, all miles count identically toward the lease allowance and overage. There is no EV-miles versus ICE-miles distinction in lease contracts.
What are my options if I am way over mileage at turn-in?
Four options: (1) Buy out the lease if the total buyout cost is still below market value. (2) Transfer the lease via Swapalease or LeaseTrader with a cash incentive to the transferee to take on the overage risk. (3) Pay the overage fee at turn-in (often the worst option for large overages). (4) Call the captive and explain the situation - some will negotiate a 10 to 20 percent reduction on large overage amounts to avoid hassle. Option 1 or 2 is almost always better than paying the full overage.
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