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Why do I have to state my mileage when leasing a car?

28/03/2017

Why do I have to state my mileage when leasing a car?

There are a few details we need before your car leasing application can be finalised and your estimated annual mileage is one of these.

 

We’ve had a few customers ask recently why we need to know their annual mileage in advance so here’s our guide to why mileage matters!

 

If you’ve ever bought or sold a used car you’ll know that vehicles with lower mileage are, generally, worth more. Therefore when you hand your lease car back after 3 years, it will be able to be sold for more, by the dealer, if it has 30,000 on the clock as opposed to 60,000.

 

The adjustment in your lease cost, dependent on mileage, is commensurate with the depreciation scale on the vehicle.

 

TIP:

Don’t underestimate your mileage just to get a cheaper monthly deal!

 

You might have read the above and thought about bending the truth about your annual mileage. Please don’t! If you go over your estimated mileage you will be charged a cost per mile over your allowance. Details of how this is charged at the start of your leasing term.

 

If you estimate your annual mileage fairly but circumstances change (perhaps a longer commute to a new job) please contact us to discuss this as in many circumstances we are able to adjust your mileage (and monthly cost) accordingly.

 

Statistics show that the average mileage for four-wheeled vehicles stood at 7,900 miles in 2013. This represents a 14% fall from a figure of 9,200 miles in 2002, the first year for which data is available.

 

If you genuinely drive less than 10,000 a year you are in the market for a very good deal! Here’s a couple of examples (prices correct at time of publishing):

 

VW Tiguan

  • 8,000 miles a year
  • 9 months initial rental
  • 23 months additional rental
  • £227.95/month (+VAT)

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  • 12,000 miles a year
  • 9 months initial rental
  • 23 months additional rental
  • £242.02/month (+VAT

Click here to view this deal

Peugeot 108

  • 8,000 miles a year
  • 9 months initial rental
  • 23 months additional rental
  • £134.60/month (+VAT)
  • ------------------------------------------------------
  • 12,000 miles a year
  • 9 months initial rental
  • 23 months additional rental
  • £139.69/month (+VAT)

Click here to view this deal


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