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What is mileage allowance?

 

What is mileage allowance?

The Bankrate.com financial term of the day is: "mileage allowance" or "mileage limitation."

You could say that a leased car is also a leashed car. A lease comes with a mileage allowance, also known as a mileage limitation, which puts a leash on the number of miles that a vehicle may be driven while it's being leased. Drive it too much, and you'll be charged a fee.

A mileage allowance, or mileage limitation, clamps down on the amount of use you can get out of a leased car.

For information on great cars and great car loan rates, visit the Auto section at Bankrate.com.

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