High Mileage Car Leasing
The latest government figures show that the average UK motorist now drives just 7,900 miles every year. While this figure might sound like enough for some, there are some motorists that do a lot of travelling across the year on a daily basis. The Rivervale guide to high mileage car leasing helps you to understand where leasing could benefit you as a high mileage driver, how to calculate your average annual mileage and which vehicles may be suited to a high mileage car lease.
Benefits of a high mileage car lease
High mileage car leasing is especially suited for drivers who cover a lot of miles per year. It benefits the customer in the following ways:
Flexible terms - Typically, leases cover 24, 36, 48 or 60 month contracts, however, we can tailor make a lease to help achieve your desired budget and circumstances.
Eliminate depreciation costs - There are some lease contracts available to cover up to 50,000 miles per year. Depending on the contract length you opt for, you could drive a total of 150,000 miles across three years without having to worry about the resale value of the vehicle at the end of the contract.
Maintenance packages available - Over the course of a typical, long driving lifetime, many drivers are likely to spend up to £40,000 on MOTs, servicing and repairs (as stated by a new study in the express.co.uk). So, with a funder-maintained package, all regular manufacturer recommended maintenance, servicing, mot and replacement tyres will be covered within your monthly rental.
If you're a VAT-registered company/business - You could reclaim between 50% and 100% of the VAT on the monthly finance rental (depending on whether you're leasing a car or commercial vehicle).
How to calculate annual mileage?
If you want to calculate your annual mileage follow these simple steps;
Write down the number of miles you drive each day when you commute to and from work (Monday to Friday), for example.
Calculate the daily figures and get your total for Monday to Friday.
Let's say you travel 160 miles (32 miles x 5) from Monday to Friday, you'll also need to calculate the weekend figure. Obviously, this can change week to week but the average, for example, is approximately 50miles (25 miles x 2)
That means your weekly average is about 210 miles.
Now that you've worked out your average weekly mileage, you can now calculate your monthly figure. You can do this by multiplying the weekly figure 4.
E.G: 210 miles x 4 is 840 miles (per month)
Using this monthly figure means you can now work out the average annual mileage. All you need to now is multiply the monthly figure by 12.
E.G 840 miles x12 =10,080 miles per year
Sounds straight forward doesn’t it.
Which vehicles are suited to a high mileage car lease?
Any vehicle could be suited to a high mileage lease, however it's important to consider how many miles you drive, what you use it for and what your monthly budget is. Whilst sports cars like Porsche and Lamborghini are everyone's dream car, these are not suitable for high mileage leases. For instance, let's say you drive 120 miles a day (including weekends), it means that you're averaging 3.5-4k miles a month, plus the monthly rental charge. And monthly rental charges for a Porsche or Lamborghini doesn’t come cheap. This is why we advise you go for a vehicle that's suitable for long car journeys and that's more cost effective to run.
Getting your quotation for a high mileage car lease
Term (length of contract) - Think about how long you would like to lease the vehicle for? Ranging from 24,36,48 or 60 months. Note: The longer you lease a vehicle, the cheaper the monthly cost will likely be.
Mileage - How many miles will your vehicle travel per year? As mentioned above, this can range from as low as 5,000 to 50,000 miles annually. The more miles covered each year, the higher the monthly cost will be. We recommend that you calculate your approximate annual mileage before proceeding with a quotation request.
Initial Rental - By definition, an initial rental basically means the sum you pay upfront. The bigger the initial rental the lower your monthly rentals will work out.
Maintenance - As a general rule maintenance covers all of your routine servicing costs, maintenance costs and replacement tyres (in some cases this even includes punctures). If your chosen contract is longer than 36 months in duration, the maintenance agreement would also cover your MOT costs to make sure that the vehicle is safe and road legal for you.
For more car leasing help and advice please see our car and van leasing guides (by clicking here) or give one of our dedicated account managers a call on 01273 433 480.
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