Leasing an electric vehicle (EV) can be an excellent option for those who want to drive green without committing to ownership. But there’s a catch many drivers overlook: mileage limits. What happens when you exceed your mileage allowance? Is it just a minor fee, or could it spiral into something more significant? Let’s break it down step-by-step, so you know exactly what to expect and how to stay in control with your EV lease.

Why Do EV Leases Have Mileage Limits?

Mileage limits aren’t just there to inconvenience you. They’re designed to protect the leasing company. The value of a car depreciates faster with higher mileage, and by capping your annual distance, they ensure the vehicle maintains its resale value. This is especially important for EVs, as their technology and batteries also impact their residual worth.

If you’re in Singapore, you’ve likely noticed the increasing trend of EV leasing due to government incentives and a push towards sustainability. With COE prices fluctuating and EV adoption on the rise, leasing gives many people an affordable entry into the electric vehicle market. But with it comes responsibilities—and mileage awareness tops the list.

How Much Does Exceeding the Mileage Limit Cost?

When you go over your agreed mileage, you’ll face something called an excess mileage charge. It’s typically a fixed fee per kilometre or mile. The amount? That depends on your lease agreement. Some companies charge as little as S$0.15 per kilometre, while others might charge more, especially for premium models.

For example, if your limit is 15,000 kilometres annually and you drive 16,000, you’ll pay for that extra 1,000 kilometres. On paper, this may sound manageable, but let’s do the maths:

• Excess charge per kilometre: S$0.20

• Extra kilometres driven: 1,000

• Total cost: S$200

Now imagine doubling or tripling that overage. Suddenly, the charges aren’t so minor anymore!

How to Check Your Mileage Allowance

Many drivers gloss over the fine print when signing their lease. Don’t be one of them! Here’s what to look for:

• Mileage cap: This is your maximum allowance per year or over the lease term.

• Excess mileage rate: The fee per extra kilometre.

• Options for adjustment: Some leases allow mid-term mileage revisions.

Always keep a copy of your EV leasing agreement handy, whether it’s in your glovebox or saved digitally. If you’re unsure about any terms, ask your leasing provider for clarification.

Why Excess Mileage Charges Add Up Quickly

High mileage impacts the resale value of your EV more than you might realise. Not only does wear and tear affect the car’s condition, but potential buyers also consider battery health. Leasing companies know this, which is why they compensate for higher usage by imposing charges.

And here’s the kicker: these charges are non-negotiable. If you’re not careful, they can inflate the total cost of your lease far beyond what you initially budgeted for.

What to Do If You Think You’ll Exceed Your Mileage Limit

Nobody wants to be caught off guard at the end of their lease term. If you think you’re driving more than expected, here’s what you can do:

1. Contact Your Leasing Company

Many providers allow you to purchase additional mileage in advance at a lower rate than the excess charge. For example, you might pay S$0.12 per kilometre upfront instead of S$0.20 later. It’s worth discussing this option early to avoid higher fees down the line.

2. Monitor Your Mileage Regularly

Make it a habit to check your odometer monthly. Some modern EVs even come with apps that track mileage automatically. Set alerts when you’re nearing your limit so you can adjust your driving habits if needed.

3. Reassess Your Lease Terms

If you consistently exceed your mileage cap, it might be worth renegotiating your lease. Some companies offer flexible plans that accommodate higher mileage for an adjusted monthly fee.

What Are the Alternatives to Exceeding Your Limit?

Sometimes, you can’t avoid driving more. Work, family commitments, or unexpected road trips can all push your mileage higher. In such cases, consider these options:

• Upgrade to a higher mileage plan: This is especially useful if you’re mid-lease and foresee consistent overage.

• Opt for pay-as-you-go leasing: A relatively new model, this lets you pay based on actual mileage rather than a fixed cap.

• Return the vehicle early and lease a new one: Though not always ideal, some companies offer pro-rated fees for early returns.

What Happens When You Return the Car?

At the end of your lease, the EV leasing company will inspect the vehicle for mileage and condition. If you’ve exceeded your limit, you’ll receive an invoice for the excess charge. Additionally, high mileage might affect your eligibility for future leases or lead to stricter terms.

To avoid unpleasant surprises, schedule a pre-return inspection. This allows you to address any issues in advance, including mileage concerns.

Take Control of Your Mileage: Choose a Flexible Solution

Staying within your mileage limit doesn’t have to be stressful. By planning ahead, monitoring your driving, and communicating with your leasing provider, you can avoid excess charges and keep your lease affordable. Remember, small adjustments to your driving habits—like combining trips or using public transport for short distances—can make a big difference.

Looking for an EV Lease?

If you’re considering an EV lease in Singapore, why not go with a provider that values your needs? At EVFY, we offer flexible mileage plans, transparent pricing, and an all-electric fleet to suit every driver. Plus, our eco-efficient routes and zero-emissions focus make us a top choice for sustainable driving.

Ready to start your electric journey? Contact EVFY today and find a plan that works for you!