Our most common mileages are between 5,000 and 10,000 miles per annum. Whilst this is enough for the majority of customers, we understand there are certain customers who travel further than others. When you lease from Britannia Car Leasing, you can lease above and beyond 10,000 miles. Typically, the maximum allowed miles is up to 30,000 per annum.
We often wonder, what is the average annual mileage people drive in the UK? For the majority of our customers, travelling between 5,000 - 10,000 miles per annum is enough for the daily commute plus some extra for additional trips. However, some customers require mileages up to 30,000 per annum.
So, is a high mileage lease deal worth it? Ultimately, it depends on your circumstances. There is no point in signing up to a 5,000 mile per annum contract if you know you are going to exceed that. The reason for this is because when your lease ends, you will be subjected to excess mileage charges by the finance company.
The downside to a high mileage lease is that the monthly rentals are typically higher. This is because of the additional wear and tear the vehicle is subjected too throughout the length of the agreement.
It is important to calculate your annual mileage as best as you can. This way, you are less likely to be subjected to any excess mileage charges at the end of the agreement.
Calculating your annual mileage is rather simple. The best way to calculate this would be to calculate your daily or weekly mileage and multiply it by the correct amount.
Things you should include when calculating your mileage:
Depreciation costs: If you take a lease out on a 30,000 miles per annum agreement and have a 48-month contract, you can drive the car for 120,000 miles without having to worry about the cars resale value at the end of the agreement.
Fixed maintenance plans: We offer optional maintenance plans with all our contracts. Those who plan on travelling increased distances are subject to more regular maintenance intervals. Without a maintenance plan, you could be subjected to spending thousands throughout the length of the contract on maintaining and servicing your lease car. Our plans give you the peace of mind that your cars requirements are taken care of without being left out of pocket.
Business advantages: If you are a VAT registered business, it's likely you will be travelling further than regular drivers. The benefit with a business lease is the ability to reclaim between 50% - 100% of the VAT on the agreement, depending on your circumstances. This could work out better in the long run instead of purchasing a new car outright.
Flexible terms: As with any lease agreement, all our terms are flexible. This means you can customise your lease contract tp suit your needs, budget, and requirements. If you are a business customer and have a fleet of vehicles, you can determine individual annual mileages for each of them.
Typically, a higher mileage agreement means higher monthly rentals. However, with a lease, you can choose how much you want to contribute towards the initial rental. The greater amount you put down initially will reduce the monthly costs.
If you are still considering a high mileage lease, take a look at some of our best offers for those who need the additional miles. If you would like to speak to our team, you can contact us. We will be happy to help you out. We understand everyone's requirements are different, our expertise will give you the best advice when it comes to determining just how many miles per annum you might require.
The table above is used for an approximation only and isn't recommended to be used as a factual guide. Please do your own calculations for an accurate contract mileage.