When it comes to leasing, mileage matters.
Not only does it affect your maintenance costs and insurance premiums (like with any other form of car plan), but also the cost of your monthly lease payments.
That's why it's a good idea to know exactly how many miles the average driver covers per year, but more importantly, how many miles you yourself expect to cover. Whether it's figuring out how many miles to declare on your car insurance or how many miles to add to a car or van lease contract, mileage is very important.
In this post, we'll be giving you an in-depth look at how mileage affects leasing, telling you about the best way to check how many miles you're covering each year, and whether you're going to rack up more miles in a petrol versus a diesel car.
Vamos and let's get to it!
Average Miles Driven Per Year
According to statistics, in 2020 the average annual car mileage on Britain's roads was just 6,800 miles. That figure is obviously going to be massively influenced by the pandemic and the rise in popularity of working from home, but even in 2019, the average was only a slightly higher figure of 7,400 miles (compared to 9,200 miles way back in 2002).
A deeper look into those same statistics revealed that this low number mainly reflects privately owned vehicles, with company cars (like those used by carers, delivery drivers etc) covering a much higher average mileage figure of 13,200 in 2020.
How Does Annual Mileage Affect Leasing?
Pretty drastically, to be honest.
Leasing is great and all (just take a look at the reasons why), but it does come with stringent terms, so it's important to get those parts right.
When deciding upon a lease agreement, you'll have to come to a decision on an annual mileage limit. This is especially important, because what you pay for your monthly payments is determined by the annual mileage as set out in the agreement.
If the agreed upon mileage limit is exceeded, you will be charged excess fees as a consequence at the end of the contract. However, you do have the freedom to amend the mileage limit at any point during the agreement.
For more info, why not check out our handy mileage guide?
How Does Annual Mileage Affect Insurance Rates?
Not only that, but there's also the issue of insurance as well. You need insurance whether you lease, own, or take out a PCP deal on a car or a van. At the end of the day, it's an unavoidable part of being on the road.
You can help lower your insurance premiums by driving fewer miles over the course of a year. That's because your mileage directly affects your insurance costs. It's a simple calculation, really: the more you drive, the more likely you are to be involved in an accident and the more of a risk that car insurance companies are going to deem you, which results in higher premiums.
It might not seem fair or reflective of your driving ability (after all, you could be as skilled a driver as Colin McRae and it wouldn't make a slightest difference to what you pay), and obviously other factors might come into play such as your age, how long you've been driving for, and so forth. But that's how the world works.
On that note, you can't get around the system by lying about your expected mileage. Not declaring the correct number of miles when applying for car insurance could invalidate your policy. Something you definitely wouldn't want.
Bottom line: don't do it, amigos.
Calculating Your Own Annual Car Mileage
For all of the above reasons, it's a good idea to track your own average annual mileage.
And as luck would have it, we're going to tell you the best way in which to do just that:
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Record the number of miles you cover over the course of a week (it could also be over the course of a day, but that's arguably too small a sample size, and weekly is probably better to get a true overall picture)
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Next step is to multiply that figure by 52 (or 365 if you've chosen to calculate by days)
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Add a little more miles on top so as to cover any holidays and/or unexpected trips
Another thing which you can do is look up your car's MOT certificates, as these record your annual mileage.
Simples!
Fun Facts: Mileage by Demographics
On a less serious note, thanks to actuaries and their fantastic number-crunching skills, we do have some interesting facts relating to mileage to share with you. These relate to driving behaviour by gender and age group. Get ready to be entertained . . .
Men drive 6,000 more miles per year than women
Average annual car mileage for women over the age of 65 was less than 5,000 per annum, making them the country's least frequent drivers
Average annual car mileage for young drivers aged 16 to 19 and elderly drivers aged over 65 was 7,600 miles
Average annual car mileage for working-aged men was about 7,500 miles more than working-aged women per annum
Petrol vs Diesel: Which is Better for Long/Short Journeys
When it comes to petrol and diesel cars, the same statistics that we mentioned earlier inform us that diesel cars travelled 9,400 yearly miles on average, whilst petrol cars travelled 6,300 yearly miles on average.
Being more reliable and durable, diesel engines are better suited for long-distance drivers and 'motorway miles'. Petrol engines are better if you're going to be taking lots of short journeys.
That's because diesel engines aren't optimised for shorter journeys. Most diesel cars are fitted with what's called a diesel particulate filter. In order for this filter not to clog up, the engine has to reach the optimum temperature by travelling at a continual high speed every so often.
That being said, a daily drive to the local shops in a diesel car isn't out of the question. It's perfectly fine so long as you're putting in those regular motorway drives every so often.
What about Electric?
Electric cars are also a good option if you're a high-mileage driver. There are fewer moving parts in an electric car, which means less that can go wrong, and rapid chargers at service stations allow you to top up to 80% range in the time that it takes to drink a coffee. A Tesla Model 3 or a Model S would be an ideal option here.
Summary
So, you now know that the average mileage is 6,800 per year, but that's still just an average and may or may not reflect your driving needs.
A bit of forward planning is all it takes. Just work out how many miles you need to drive each year (commutes, a weekly shop to Lidl, etc.), factor in a bit more for holidays and spontaneous trips, then take out a lease deal with that mileage figure in mind.
Don't take out a lease deal and THEN realise that you're actually covering more or fewer miles than you thought you would, although you can still amend the mileage limit at any point during the agreement. (Don't say leasing isn't fair to you!)
And don't forget, your mileage will affect your warranty and insurance!
FAQs
What is a car's average annual mileage?
In the UK, the national average mileage was 6,800 miles (as of 2020).
What is good mileage for a year?
Depends on how you define 'good', but anything lower than the average annual mileage is generally a good bet (as of 2020, that average mileage figure was 6,800 miles).
How many miles does a car last on average?
Assuming that it is properly maintained, then the average car has a lifespan of around 200,000 miles.
How many mileage is too much for a car?
As stated above, anything over 200,000 miles could be considered too much.