How to Avoid Mileage Penalties on a Lease

Leasing a car can work if you don't want to commit to one car for the next five years. People who lease can swap out their cars every two or three years, and often make smaller monthly payments than those who buy. But with leases come potential mileage penalties when the lease expires. Learn how to protect yourself and avoid a huge out-of-pocket expense.

Instructions

1

Purchase adequate miles at the lease signing. Lease contracts permit drivers to put 10,000 to 15,000 miles on the car per year. Avoid mileage penalties by negotiating enough miles in your contract. Track how many miles you drive a month, and then make sure that your lease agreement can accommodate your driving habits. For example, if you drive 1,000 miles a month, get a lease that permits at least 12,000 miles a year.

2

Car pool to work. If possible, car pool with another co-worker or take advantage of public transportation to keep the mileage on a leased car low. This advice applies even more if you're nearing the end of your lease term and you fear going over your mileage allowance.

3

Rent a car when taking car trips. Because lease contracts limit mileage, avoid long-distance driving in your leased car unless you have adequate miles. Get a rental car, take a train or travel to your destination by airplane.

4

Purchase the leased car to avoid mileage fees. Leasing a car gives you the option to purchase the car at the end of the term. Buying the car eliminates any extra mileage fees.