Published on Thursday 15 February 2018 in Van News
All you need to know about mileage...
Mileage limits are often a deterrent when it comes to considering leasing as an option for financing a vehicle. Not to worry though, because we're here to explain why mileage limits shouldn't put you off leasing. Vanarama's Laura Day reports.
To put it simply, leased vehicles have a mileage limit in order to work out the expected residual value of the vehicle at the end of the lease term.
The agreed deposit and monthly payments are based on the chosen mileage. When you lease, you are paying for the depreciation of the vehicle – the more miles on the clock at the end, the higher the payments will be.
How can I spread my miles over the years?
Remember to bear in mind that your total mileage is pooled together. So, if you have a 3-year contract with 10,000 miles per year, you actually have one big pot of 30,000 over all 3 years – meaning you can spread the load however you please.
The ball really is in your court with this one. If you do 8000 miles in your first year, 12,000 in the second and 10,000 in the final year – this is not a problem.
No worries with Vanarama
We will identify your personal needs and work with you to calculate an estimated mileage for you and your vehicle.
Working with a reputable broker like Vanarama means that you're unlikely to exceed your estimated mileage – we are here to help find your perfect leasing package.
How do I manage my mileage limit?
Vanarama has got you covered – if you think you're going to exceed your settled limit, it IS possible to add more miles on to your agreement.
Simply give us a call and we'll see what we can do – as easy as pie.
Leasing is (almost) limitless!
While there is no official limit on maximum mileage, as it varies between finance companies, most brokers are unlikely to exceed 30,000 a year. This is because the more mileage a vehicle does, the less it's worth at the end of the lease term.
With this many miles available, and the right guidance from your broker, you should stay well inside your agreed mileage limit.
As always, don't hesitate to get in touch on 01442 838197, if you have any further questions about leasing and mileage limits – we are always happy to help.