Leasing or subscribing a vehicle is a great way to drive a new car without the commitment of purchasing. However, one of the key factors to keep in mind is your mileage limit. Exceeding the agreed-upon mileage can lead to unexpected charged when your vehicle is returned. Fortunately, understanding and managing your mileage is straightforwards with the right free tools.
How to calculate your excess mileage
In this guide, we’ll walk you through how to calculate your excess mileage on your contract using our handy online calculator. This will help you avoid any surprises when it’s time to return your car.
What is Excess Mileage?
When you lease or subscribe to a car, your contract will typically include a mileage allowance. This is the maximum number of miles you can drive during the contract without incurring any further charges. This allowance is often expressed as a monthly limit, such as 1,000 miles per month.
If you exceed this allowance you will be charged an ‘Excess Mileage Charge’, it can vary from supplier to supplier and is usually calculated in a pence per mile form. While these charges seem small at first glance, they can quickly add up if you’re significantly over your limit.
How to calculate excess milage
Calculating excess mileage involves a few simple steps:
- Determine your allowed mileage: Your contract will state the total number of miles per month. Multiply this number by the number of days/months in your contract to work out your total mileage allowance.
- Track your mileage: Regularly check your vehicles mileage on the odometer. Keep track of how far you’ve driven since the start of your lease, pop a note in your smartphone.
- Calculate Days Owned: Calculate the number of days you’ve had the car from the start date of the contract to the point where you made a note of your mileage. Include both start and end dates.
- Compare against Allowed Mileage: Use the formulate ‘Allowed miles per month * 12 / 365’ to determine the daily mileage rate, then multiply this rate by the number of days you’ve had the vehicle. Subtract your allowed mileage from your recorded mileage to find your excess miles.
- Calculate the Charge: If you’ve exceeded the mileage allowance, take look at your excess charge rate on your contract and multiply the excess miles by the excess mileage charge.
Use our Excess Mileage Calculator
To make the process of calculating your excess mileage even easier, we’ve developed an excess mileage calculator thta you can use right on our website. Simply enter the details and our calculator will give you an approximate working out, saving you time doing the maths, here how it works:
- Start Date of Contract: The date your lease began.
- Date Mileage Recorded: The date you last checked your car’s mileage.
- Delivery Mileage: The mileage on the car when you first received it.
- Mileage Taken: The current mileage of your car.
- Allowed Mileage: The agreed mileage allowance per month (e.g., 1,000 miles per month).
- Pence per Mile Excess Mileage Charge: The fee per mile for exceeding the mileage limit (optional).
Once you input this data, the calculator will provide the following results:
- Your start date and the date you recorded your mileage.
- The number of days you’ve had the car, including the start and end dates (+1 to the amount of days).
- The equivalent number of months you’ve had the car.
- The allowed mileage up to the recorded mileage date.
- Your excess miles, if any.
- An estimated charge for the excess miles.
Results
Tips to Manage Your Mileage
Please see some of our top tips below:
- Monitor Your Mileage Regularly: Keep an eye on your mileage throughout your lease. Set reminders to check your odometer monthly, so you’re always aware of where you stand.
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Plan Your Trips: If you’re approaching your limit, consider alternative transportation options like carpooling, public transit, or consolidating trips to reduce mileage.
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Negotiate a Higher Mileage Allowance: If you know you’ll be driving more than average, negotiate a higher mileage limit when signing your lease. While this will increase your monthly payments, it could save you money in excess mileage charges in the long run.
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Buy Extra Miles Upfront: Some lease agreements allow you to purchase additional miles upfront at a reduced rate compared to paying excess mileage fees at the end of the lease.
Conclusion
Excess mileage charges can come as a nasty surprise, something of which we don’t like giving customers here at Cocoon Vehicles. By understanding your contract, tracking your mileage and using our excess mileage calculator, you can stay within limit and avoid any additional fees.
If you know that your mileage isn’t going to decrease over the contract, it may be worth contacting your leasing provider or vehicle subscription company to see if you can do a mid-contract adjustment. Once quoted work this out against your excess mileage charge on your contract to see if it will save you money.
If you need any help with a new car subscription or a short-term car lease and you are a personal or business customer, please do get in touch with the team on 01332 290173 or by using the ENQUIRY FORM at the bottom of this article.
Disclaimer
Please note that this excess mileage calculator is intended for reference and informational purposes only. Different leasing and subscription companies may use varying methods and formulas to calculate excess mileage and associated charges. The results provided by this tool are based on general calculations and may not reflect the specific terms of your lease agreement. We strongly recommend that you verify the details and calculations with your leasing provider to ensure accuracy. Always refer to your contract and consult with your provider for the most accurate and applicable information regarding excess mileage charges.
