What happens if you go over your PCP mileage?
If you hand the car back over your mileage limit, the finance company charges you for every extra mile at the rate in your agreement — commonly somewhere between 5p and 30p per mile. If you part-exchange or keep the car, there's no direct excess mileage charge.
Here's what the bill can look like, what happens at handover, and what you can do about it.
The PCP mileage calculator projects your end mileage and estimates the excess charge from your contract details.
How much will it cost?
The calculation is simple: miles over your limit × pence per mile. Example: a 36-month contract at 10,000 miles a year has a 30,000-mile limit. Hand it back on 34,500 miles and you're 4,500 miles over. At 12p a mile, that's £540.
Here's how the bill scales with the rate. The rates are illustrative, not quotes:
| Miles over | At 8p | At 12p | At 20p |
|---|---|---|---|
| 1,000 | £80 | £120 | £200 |
| 2,500 | £200 | £300 | £500 |
| 5,000 | £400 | £600 | £1,000 |
| 10,000 | £800 | £1,200 | £2,000 |
Your actual rate is in your agreement. Check whether it's quoted with or without VAT, because if it's without, the real bill is 20% higher. There's a full walkthrough in our guide to calculating excess mileage charges.
What happens at handover
When you return the car, the odometer is read as part of the handback inspection. Any excess mileage charge is added to anything else you owe, such as damage beyond fair wear and tear, and you're normally sent an invoice to pay.
If you can't pay it in one go, contact the finance company early. Ignoring the invoice can lead to the debt being passed to collections and may affect your credit file.
It depends what you do at the end
| Option | Excess mileage charge? |
|---|---|
| Hand the car back | Yes — charged directly at your contract rate |
| Part-exchange | No invoice, but the extra miles reduce the dealer's valuation, so you may get less equity |
| Pay the final payment and keep the car | No — but check the car is worth what you're paying for it |
| Voluntary termination | Grey area — finance companies may still claim mileage charges, so get advice first |
Part-exchange isn't automatically cheaper or dearer than paying the charge. Get a valuation and compare it with the excess bill before deciding.
How to reduce or avoid the charge
- Check your pace now. The earlier you know, the more options you have. The calculator shows how many miles a month you'd need to average from here.
- Ask your finance company about a change. Some lenders will re-quote a higher allowance mid-contract. It's not guaranteed, and it works best with a year or more left.
- Cut some miles. If you're only slightly over pace, shifting a few regular journeys to a train, bus or another car can close the gap.
- Compare the end-of-contract routes — hand back, part-exchange or keep — using real numbers.
- Check the bill. Confirm the odometer reading, your allowance, the rate, whether VAT is included, and the arithmetic.
There's no clever loophole. The charge is in the contract you signed, so the practical options are the ones above.
See how to tell if you're over your PCP mileage, or understand how PCP mileage limits work.
Frequently asked questions
Do I have to pay excess mileage on a PCP?
Only if you hand the car back over your limit. If you part-exchange it or pay the final payment and keep it, there's no direct excess mileage charge, although mileage will affect what the car is worth.
Is there a limit on how much I can be charged?
Not typically. The charge normally applies to every mile over your allowance. Some agreements do include a cap, so check your paperwork.
Will I get a warning before I'm charged?
Don't rely on one. Some lenders contact customers near the end of the term, but it's your responsibility to track your mileage. Check your pace regularly rather than waiting to be told.
Can I dispute an excess mileage charge?
If the odometer reading, allowance, rate or maths looks wrong, raise it with the finance company first. If you can't resolve it, you can complain to the Financial Ombudsman Service once the lender has given its final response.
Is a small overage usually ignored?
You shouldn't count on it. Some lenders may show discretion on minor overages, but the contract usually entitles them to charge for every mile over.
This article is for informational purposes only and doesn't constitute financial advice. Always check your own agreement or speak to your finance provider for figures specific to your contract.