The number of miles driven in excess of a specific number defined in your car lease.
At the end of an agreement the miles covered is over and above the miles originally specified on your quotation and finance agreement.
The Lexus Custom-Tailored Preferred Option Finance Plan contains a mileage limitation to prevent excess mileage from being driven and, therefore, excess depreciation of the vehicle. A set mileage allowance is stipulated in an LFS lease agreement. If this limit is exceeded, the lessee is charged for each mile driven exceeding the allowable mileage, as specified in the lease (e.g., $0.15 per mile). However, if at lease inception you feel you will be driving more than is set forth in the lease, you can add the anticipated excess mileage (at $0.15 per mile) to your lease to be paid as part of your monthly payment.
When leasing a car for a fixed period the customer is effectively paying for the depreciation of the vehicle - based in part on an anticipated level of mileage. If the agreed maximum mileage level is exceeded, the car is worth less and hence an additional charge is required to compensate the finance company for this additional reduction in the car's value.
Most leases allow for a maximum number of miles per year. Any miles driven over the limit are usually billed at between 8 and 15 cents a mile.
Miles driven beyond what is included in the lease will be considered excess mileage at lease termination and will be assessed at $0.15 per mile for vehicles with a MSRP less than or equal to $33,999 and $0.20 per mile for vehicles with a MSRP greater than $34,000. PRIMUS Financial Services allows extra miles to be purchased at lease inception for a discount.
You are limited to 10,000 - 15,000 miles annually. Any more and you'll pay fines of 15 cents per mile. Watch the mileage, or you'll owe a lot at the end. An extra 2,000 miles a year on a 3 year lease could cost you $900. Don't pay for extra mileage up front, you won't get a refund if you don't drive excess miles. The dealers don't tell you about this little clause, it's buried in the writing, and by signing the lease, you effectively said that you read and understood everything.
Difference between the mileage from point of origin through points of diversion and re-consignment to final destination and the mileage from point of origin to final destination.
Miles driven beyond what is included in the lease/contract will be considered excess mileage at the end of the contract term. Excess mileage will be assessed at $0.15 per mile for vehicles with a MSRP less than or equal to $30,000 and $0.20 per mile for vehicles with a MSRP between $30,001 and $49,999 and $0.25 per mile for vehicles with a MSRP of $50,000 or greater. Prior to 1-16-2006 please check your contract for charges. See Additional (Extra) Mileage and Standard Mileage.