Your agreement sets an annual mileage allowance. Go over it by the time you hand the car back and you pay a fixed rate for every extra mile — usually somewhere between 3p and 20p, depending on the vehicle.
The important thing is that this is entirely predictable. Your current mileage and how far into the agreement you are tell you your pace, and your pace tells you where you will finish.
Check where you are heading
Enter your allowance and current odometer reading. Everything runs in your browser.
How the charge works
- Total allowance = annual allowance × (term ÷ 12). A 10,000-mile allowance over 48 months gives you 40,000 miles in total.
- Your pace = current mileage ÷ months completed, which projects forward to a predicted final mileage.
- Excess = predicted final mileage − total allowance.
- Charge = excess miles × pence-per-mile rate.
The allowance is pooled across the whole agreement, not policed year by year. A heavy first year is fine if a quiet second year brings the average back down.
The charge only applies if you hand the car back. Pay the balloon and keep it and there is no mileage charge at all, no matter how far over you are. That reframes the decision entirely — if you are heading for a large excess bill, buying the car or part-exchanging it can be cheaper than returning it.
What to do if you are heading over
- Ask to raise the allowance now. Most UK lenders will revise it mid-agreement. Your monthly payment goes up, but the effective rate is usually well below the end-of-term excess rate. The earlier you ask, the more it helps.
- Buy the car instead of returning it. Paying the balloon removes the charge completely.
- Part exchange before the end. Settling early stops the clock. If you have equity, it can cover the gap.
- Drive something else for the high-mileage journeys. Blunt, but a second cheap car or occasional rental can genuinely cost less than 15p a mile.
Take a dated photo of the odometer on handover day. Mileage disputes are rare but awkward to unwind after the car has been collected and moved. A timestamped photo settles them instantly.
Typical excess rates in the UK
Rates vary by vehicle value more than anything else — the more the car is worth, the more each mile costs it in resale value.
- Small hatchbacks: roughly 3p–6p per mile
- Mid-range saloons and SUVs: roughly 6p–10p per mile
- Premium and performance models: 10p–20p and occasionally beyond
At 10p a mile, going 5,000 miles over costs £500. It adds up faster than most people expect, which is why checking your pace part-way through is worth the two minutes.
Common questions
Do I pay excess mileage if I buy the car?
No. Pay the balloon payment and keep the vehicle and the charge disappears entirely. It exists to compensate the lender for lost resale value, which stops mattering once the car is yours.
Can I increase my allowance part-way through?
Usually yes. Most lenders will revise it, raising your monthly payment in exchange for more miles. It is almost always cheaper per mile than paying the excess at the end, so ask as soon as you can see you will go over.
Is there a tolerance before charges start?
Normally none. Unlike damage, where fair wear and tear is expected, mileage is measured exactly and charged from the first mile over. A few agreements do include a small buffer — worth checking yours.
Does this apply to leases too?
Yes, and it bites harder. PCH works identically for mileage, but since you always hand a leased car back, you cannot sidestep the charge by buying it.
What if I finish under my allowance?
Nothing happens — you are not refunded for unused miles. If you are comfortably under, that is worth knowing when you choose the allowance on your next agreement, since you have been paying for miles you never used.
Track your mileage automatically
Motorise logs your mileage over time, projects your final figure, and warns you when you are drifting over allowance — long before it becomes a bill.
This calculator gives an estimate for general information and is not financial advice. The projection assumes you carry on driving at your current average pace; seasonal or one-off journeys will shift the outcome. Check your own agreement for the exact allowance, excess rate and any tolerance that applies.