How does mileage work with car leasing?
If you are concerned about getting into the specifics of how many miles you are doing per year, don't be. Very few of us have an exact idea of how many miles we drive per year. Of course, your personal circumstances can change from year to year, but we always recommend looking back at the past with either service or MOT documentation to give you the best guess.
Naturally, the cost is dependent on the number of annual miles you state on your agreement. Our advisers will always take an impartial approach and help you in the best ways they can, should you have any questions on mileage. Please feel free to ask us about how mileage can impact the monthly rental or the surcharges that can apply.
Should you find yourself mid-way through your personal lease or business lease agreement and exceeding the contractual mileage, it's worth noting that in some circumstances we can make every effort to have your contract re-evaluated. This is a non-guaranteed service.
Should you wish to receive an email of a quote, all of the costings including excess mileage will be broken down clearly. If there are any terms of the quote that you are unsure of, we'd recommend you broach these with your designated account manager before signing any agreement.
Excess Mileage Charges
If the car you are returning has gone over the contractual mileage (multiply the annual mileage with the how many years you'll have the car) then you may be charged on a pence per mile basis.
Every contract will have a differing pence per mile cost which will be given to you alongside the quote and once again with the official contract documents.
Some tips on avoiding the charges:
- Be realistic with how many miles you drive in a year
- Add some extra miles as a safety net
- Notify the funder of any changes in circumstances to see if you can increase the contract mileage mid-way