17th October 2019
There are more cars on the road than ever before, but we’re driving them less. Consequently, more drivers are specifying lower mileage limits on their finance contracts.
According to Leasing.com, which conducted the survey, the estimated average annual mileage per car has fallen as the number of cars per household has increased. It has fallen by 17% from around 9,200 miles in 2002 to around 7,600 miles in 2018. For petrol cars alone, the average mileage was just 6,600 miles in 2018.
Meanwhile, consumer demand for lower annual mileage car agreements has increased. Leasing.com said that 5,000-miles-a-year deals now accounted for 17% of all personal leasing enquiries:
Paul Harrison, the Head of Strategic Partnerships at Leasing.com, said that car buyers “always look to keep the costs of their next new car to a minimum and 5,000-mile deals allows them to strike the right balance between affordability and desirability, especially if it’s a second or third car in the household.
“The lower the mileage, the higher the car’s residual value will be – a crucial factor when it comes to monthly lease rates. However, all drivers should carefully consider their anticipated annual mileage. Excess charges are often around 7p-8p per mile, but can be higher. Going over your allocated mileage by 3,000 miles, for example, could cost you several hundred pounds in charges at the end of the contract.”