The cheapest mile is the one you planned for.
Most excess-mileage bills are not surprises. They result from signing a 12,000- or 15,000-mile allowance because the payment looked lower, then driving the vehicle the way the business actually works. At turn-in, every extra mile costs money. On many U.S. leases, that rate lands between about 15 and 30 cents per mile, set in the contract, not negotiated later.
Five thousand unplanned miles at 25 cents is $1,250. On a five-vehicle fleet, that is a real cash hit the same week you need the next units.
Here is how to set the allowance before you sign.
Pull the last 12 months of odometer readings for each vehicle, or for vehicles that do similar work. If you do not have that history, track four weeks and annualize it, then add a buffer.
Write down three numbers for each role:
The allowance you sign should cover the busy year plus the buffer, not the quiet month you remember.
A lower monthly payment on a short allowance is not cheaper if you blow past the cap.
| Item | Example |
|---|---|
| Term | 36 months |
| Allowance signed | 15,000 miles/year (45,000 total) |
| Actual use | 20,000 miles/year (60,000 total) |
| Excess | 15,000 miles |
| Contract rate | $0.20/mile |
| Turn-in bill | $3,000 |
That $3,000 often costs more than the extra monthly payment for a 20,000-mile allowance would have cost over the same term. Ask for both quotes side by side before you choose.
One number for every van and pickup punishes the high-mile unit and makes the low-mile unit overpay.
If drivers swap vehicles, track miles by unit anyway. The contract follows the VIN, not the driver.
Get the excess rate in writing on the quote, not just in the final packet.
A realistic allowance still needs a check.
Waiting until month 34 leaves you with a bill and no options.
The 2026 IRS business standard mileage rate is 72.5 cents per mile. That is an optional tax figure for deductible vehicle costs. It is not your lease excess charge, and you should not use it to price an overrun.
External resource: The IRS publishes the rate.
A realistic allowance costs a little more each month. An unrealistic one costs a lot at the end.
Need help matching mileage to the right vans and pickups? Contact Wilmar. We can look at how your vehicles are actually used and structure allowances so the payment fits the route.
Q: What happens if we go over the mileage allowance?
A: You pay the excess rate in the contract for every mile over the total allowance at turn-in. The rate is fixed. It is not renegotiated when the vehicle comes back.
Q: Is a lower payment with a short allowance a good deal?
A: Only if you will actually stay under the cap. Run both quotes. The higher allowance is often cheaper once you include excess charges.
Q: Can unused miles on one van cover another?
A: Almost never. Each contract stands on its own odometer.
Q: Can we raise the allowance during the lease?
A: Sometimes. Ask before you sign, and ask again as soon as a vehicle is running ahead of pace. Waiting until the end removes the option.
Q: How much buffer should we add?
A: Ten to 15% above a busy year is a practical start. Less than that, and one extra account or a coverage vehicle can blow the cap.
Q: Does the IRS 72.5-cent rate apply to excess miles?
A: No. That is a tax mileage rate. Your lease excess charge is whatever the contract says, often in the 15- to 30-cent range.
Q: Should every vehicle have the same allowance?
A: No. Match the cap to the route. A local unit and a high-mile unit should not share one number.