As excess mileage charges vary, it is important that you check the excess mileage charges before you sign your car finance deal. You will be advised of your excess mileage charge upfront, and this will show on your contract.
How much mileage should I choose for my lease?
One of the most important things to consider when choosing your new lease vehicle is the annual mileage. Choosing a mileage allowance that reflects your driving habits is vital because if you exceed your chosen mileage, you will be liable to pay excess mileage charges.
Your choice of mileage allowance is entirely down to you. If you are confident that your driving habits are likely to remain unchanged from the previous few years, the difference between the mileage amounts stated on your recent MOT certificates will give you a fair idea of the mileage you're likely to need.
Or, you can take a measurement based on how many miles you do in an average month and multiply it by 12. It is best to average this over a year because you may drive more during the winter months when the weather is bad but less during summer months when you typically take holidays abroad, so keep these in mind to make your estimation as accurate as possible.
Can I lease a car with unlimited mileage?
No, it is not possible to lease a car with unlimited mileage. This is because the mileage and other factors are used to determine your monthly rental cost.
If you are looking for a vehicle with unlimited mileage, other options may be available. You may want to consider purchasing a car outright via a bank loan or dealer finance. Or you could consider a Hire Purchase style agreement in which you take ownership of the vehicle at the end of the contract.
What is considered a high mileage lease?
Most car lease agreements have an annual mileage of 5,000 and 15,000 miles per year. A high mileage lease agreement has an annual mileage of 18,000 to 40,000 miles per year.
While high mileage lease contracts are available, it is worth noting that a higher annual mileage will result in higher monthly lease payments. As such, many high mileage drivers choose to buy a vehicle outright or opt for a Hire Purchase style agreement to help keep monthly costs down.
Is my annual mileage tracked each year or at the end of the contract?
Whilst you pre-agree an annual mileage at the start of your lease agreement, the finance provider does not actually track your mileage each year. Only at the end of the contract do they look at your total mileage to determine whether excess mileage charges apply. This means so long as you hand the vehicle back within the pre-agreed mileage perimeters, how you use this is up to you.
For example, if you took out a 24-month lease agreement with an annual mileage of 10,000 miles per year, you could do 5,000 miles in year one but 15,000 miles in year two. As the vehicle is returned with 20,000 miles (or less) on the clock, you will not be charged an excess mileage charge.