# How are excess mileage charges worked out?

Take the mileage at return, subtract the total mileage your agreement allows, and multiply the difference by the pence-per-mile rate in the agreement. If the answer is lower than the figure on your bill, ask the company to show its working. Being under your allowance does not earn a refund or reduce damage charges.

Last reviewed 13 November 2026. Published by Handback Check (https://damagereclaim.co.uk), an independent UK service that checks lease return bills. Canonical page: https://damagereclaim.co.uk/guides/excess-mileage-charges/

## The sum

| Step | Example |
| --- | --- |
| Mileage at return | 41,250 |
| Total allowed (annual allowance × years) | 36,000 |
| Excess miles | 5,250 |
| Rate in the agreement | 9p a mile |
| Charge | £472.50 |

Use the [excess mileage calculator](https://damagereclaim.co.uk/excess-mileage-calculator/) to run your own figures.

## Four things to check

1. **The start mileage.** The allowance runs from the delivery mileage, not from zero.
2. **The allowance after any change.** If you extended the agreement or changed the mileage mid-term, the total allowed should have gone up.
3. **VAT.** Check whether the pence-per-mile rate in your agreement is quoted with or without VAT, and that the bill uses the same basis.
4. **The return reading.** Compare the odometer photo from collection with the figure on the bill. Miles driven by the collection agent after handover are not yours.

## How the ombudsman looks at mileage

If you were not told about the mileage cap when you took the agreement, the Financial Ombudsman Service looks at whether it was mis-sold. If you knew about the cap, it looks at what the agreement says, what was said at the start, and the circumstances of the return, and decides whether it is fair for you to pay all or part of the charge. [1]

## Under your allowance

Several customers have argued that low mileage should offset damage charges because the car is worth more. The ombudsman has rejected this each time, because the agreements did not provide for it. [2] [3] [4]

## Ending early

If you ended the agreement early, the allowance is usually reduced in line with the shorter term. Ask the company for the pro-rata calculation in writing and check it against your agreement.

## Quick answers

**What is a typical excess mileage rate?** The rate is set in your agreement and varies widely by car. Check the figure in your own agreement, not a typical one.

**Do I get money back for being under my lease mileage?** Not unless your agreement says so, and most do not. The ombudsman has declined to offset low mileage against damage charges.

## Sources

1. [Financial Ombudsman Service, Car finance complaints: what we look at](https://www.financial-ombudsman.org.uk/faqs/all/sort-complaints-motor-finance)
2. [Financial Ombudsman Service, decision DRN-5896019 (Arval)](https://www.financial-ombudsman.org.uk/decision/DRN-5896019.pdf)
3. [Financial Ombudsman Service, decision DRN-6074117 (Novuna Vehicle Solutions)](https://www.financial-ombudsman.org.uk/decision/DRN-6074117.pdf)
4. [Financial Ombudsman Service, decision DRN-5794559 (Santander Consumer Contract Hire)](https://www.financial-ombudsman.org.uk/decision/DRN-5794559.pdf)