How Many Miles Can I Drive on a Commercial Lease?

As many as you want. Really. Most of our exposure to vehicle leases comes from ads we see for consumer leases, and those always have some sort of mileage limitation, which is typically very low, sometimes as little as 10,000 miles per year. Commercial leases are different, however.

In many cases, leases depend on using the residual value as an advance trade-in. Because of that, there is typically a stated mileage allowance in the lease. But that’s more of a planning tool than anything else, to give the leasing company something to base the residual (trade-in) value on.

Those mileage limits usually start at 25K-35K miles per year for commercial leases, and can go up to 100,000 miles per year or more.

Depending on how the lease is structured, there generally isn’t a direct mileage penalty for going over that stated mileage limit. Many leasing companies will look at your fleet mileage as an overall fleet average, rather than on a vehicle-by-vehicle basis.

Worried about penalties? Read here.

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