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So, what’s the UK annual mileage norm, and how do you work out the answer to the fundamental question: “How many miles a year do I drive”?
To get a good overview, let’s start by looking at some official annual mileage stats, as compiled by the Government’s Department for Transport (DfT) as part of the National Travel Survey.
The latest, revised figures show that in 2023 motorists in England journeyed an average of 7,000 miles per year. That figure covers all types of cars. Perhaps unsurprisingly, diesel drivers had the highest annual mileage at 8,300 miles per year while petrol vehicles covered an average of 6,100 miles.
That 7,000-mile figure is slightly up on 2022’s average mileage of 6,800 but still down on 2022’s figure of 9,200 miles per annum. Of that 7,000 miles, 2,300 of them are taken up commuting, a further 400 miles relate to business use, and 4,400 are marked for ‘private mileage’.
The DfT’s isn’t the only dataset we can look at.
Consultancy firm Field Dynamics compiles an annual mileage report based on analysis of vehicle MOT data. It suggests the UK’s annual mileage is around 6,551 miles per year - ie, slightly less than the DoT’s estimated figures for England.
Your annual mileage estimate leads to some really important choices.
Firstly, when you take out an insurance policy you need to inform the provider how far you’re going to travel in the car you’re insuring. As a rough rule of thumb, the higher your annual mileage the more expensive your premium will be, while drivers with a lower annual mileage can secure cheaper car insurance as they’re deemed less of a risk.
It should go without saying, but don’t be tempted to lie to your insurance provider about your annual mileage in order to secure a cheaper rate - as doing so could end up invalidating your policy and leaving you completely unprotected.
Your annual mileage dictates the size of your monthly lease fee (as we explain below).
And it’s also an important factor in the decision to lease an electric vehicle.
There’s often hesitation when choosing an EV over a car with a combustion engine due to fears the electric range won’t be sufficient.
Recent analysis of average EV mileages, however, should make you think differently. The Department for Transport doesn’t yet supply data for EVs, hybrids and plug-in hybrid annual mileages.
But research by CAP HPI suggests that used EVs now cover an average of 8,292 miles per year - which is higher than the norm.
Divide that figure by 52 (ie, the number of weeks in a year) and you get an average weekly EV mileage of 159 miles.
With an average electric vehicle range of 234 miles with modern cars, that’s far in excess of the average EV weekly total so it’s easy to see how a battery-powered car could slot perfectly into your life! Hopefully that breakdown offers reassurance if you’re still on the fence about the benefits of going green.
The structure of a car leasing contract is centred around how many miles you drive each year.
Whenever you choose a lease deal, you agree to a set annual mileage - typically between 5,000 and 30,000 miles per year with contract hire - which then helps to determine the cost of your monthly lease fee.
Why does mileage matter?
As a vehicle ages and gets more miles on the clock, it depreciates in value. And that deprecation cost is built-in to lease deals. The more miles you do per year, the quicker the car depreciates in value, and therefore the more you’ll pay to compensate for that each month.
There’s a financial cost of exceeding your agreed leasing mileage limit as you’ll need to pay an excess mileage charge. The good news is that you can adjust your annual mileage limit during your lease contract, a process that we cover in detail below.
What about unlimited mileage car lease deals? They’re incredibly rare and the vast majority of funders do not offer them.
What’s the best way to work out your own annual personal mileage?
Perhaps the easiest and the most accurate way is to simply look at your annual MOT test certificate. It lists your car’s mileage on the day you presented it for its test. And by comparing previous years you can see precisely how many miles you’ve put on the clock.
Can’t find your MOT certificate? Worry not, you can request a replacement copy online and it’s a completely free service.
Another way to work out your annual mileage is to log the miles travelled during a month and then multiply that number by 12 to get an estimate for your yearly total.
Be careful if you use that method, though, as you might record a particularly lean or busy month, which might skew your overall yearly figure.
If you’re covering between 20,000 and 30,000 miles per year, that’s considered a high mileage lease deal.
That being said, it might still be the perfect option for you if you cover lots of commuting or business miles, if you’ve got family at opposite ends of the country, or if your hobbies see you covering the length and breadth of Britain!
If you put more miles on the clock than you agreed when you initially took out your lease deal, you’ll have to settle an excess mileage charge at the end of your contract.
While we’re talking here about ‘annual mileage’, you don’t actually pay an excess mileage charge every twelve months. The charge is instead calculated as a total mileage at the end of your agreement.
So, if you took out a three year lease at 5,000 miles per year (ie, 15,000 miles in total) and you hand the car back with 16,000 miles on the clock, you’ll pay a charge for those additional 1,000 miles.
The charge itself is calculated on a pence per mile basis. And it often spans between 3p and 30p per mile, depending on the vehicle you’re leasing and the details of your individual lease. Because personal circumstances vary, it’s difficult to find a one-size-fits-all excess mileage charge calculator.
But your precise, personalised pence per mile excess mileage charge will be clearly outlined in your contract and flagged before you sign it.
How can you avoid paying any excess mileage charge?
The most obvious way is to calculate your predicted annual mileage accurately in the first place, based on real-life vehicle usage and not what you might hope to achieve if you drive sparingly.
If you’re driving a company lease car, you could explore swap options with a colleague who drives fewer miles per year than you do.
And if there are two or more cars in your family, you could off-set some of the miles on another vehicle in order to bring down the annual mileage of your lease car.
Driving habits change - and you might find yourself covering more or less miles than you anticipated mid-way through your lease agreement.
The good news is that it is possible to adjust your agreed annual mileage limit during your lease period, depending on the funder.
It works both ways - meaning you can either increase or decrease it. It’s called a ‘mileage extension’ or ‘mileage reduction’. It’s typically available as an option once you reach six months into your contract but can’t be renegotiated when there are only six months left on your agreement.
Not all funders offer mileage amendments (it is possible with some of the funders that Select Car Leasing works with)- so check with your provider carefully.
As the official stats show, there are plenty of people in the UK who drive relatively few miles each year, particularly now that more and more employees are working from home.
And if you’re enjoying a lease vehicle as a second car, or you only need it to run the kids to school or for leisure purposes at the weekend, a low mileage lease deal might be a brilliantly-affordable mobility solution for you.
With a low 5,000 per year annual mileage, you benefit from cost-effective monthly fees while still having the peace of mind that your road tax and manufacturer’s warranty is automatically included in your leasing agreement.
Lower annual mileage also means less expense when it comes to servicing and maintenance fees, including the cost of replacement tyres.
While this guide is focused on leasing, the same rules apply if you’re looking to purchase a vehicle outright. With fewer miles there’s less deprecation and you protect the car’s value should you ultimately sell it or trade it in for a different vehicle further down the road.
And how many miles on a car is ‘bad’? As long as a vehicle is well looked after, maintained according to the manufacturer’s guidance and serviced regularly, a modern car will happily travel well in excess of 100,000 miles during its lifetime. In fact, many will exceed 200,000 miles if they’ve had a good life. How many miles a car can last is down to you!
As we’ve explained above, you need to think carefully before you agree on your annual mileage limit when you lease a vehicle.
Low mileage lease deals benefit from increased affordability, but if you underestimate your annual mileage you could face an excess mileage charge.
Take the time to work out how many miles you REALLY travel, factoring-in any long work trips or holidays, particularly if you’re heading abroad.
And check with your funder about the flexibility of annual mileage contract renegotiations, because each provider will have their own rules.
You’ve just passed your test, you can’t wait to get behind the wheel of a new car, and you’re now the go-to person for lifts from friends. But what sort of lease car will keep you smiling for months on end?
If you're a pet owner, you'll know that finding a car that suits both you and your pets can be tricky. However, some key manufacturers have been putting in the hard yards for us and coming up with some great features for pets- and their owners. Check out our guide to see how leasing allows you to affordably access these latest innovations and comforts.
There are many benefits to personal car leasing, including cost effectiveness, smart use of your money, peace of mind and the hassle-free enjoyment of driving a brand-new vehicle.
Still looking for the perfect lease vehicle, no matter what your annual mileage might be? Shop our full range of car lease deals or get in touch with our car leasing experts for helping finding your next vehicle.
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I would definitely recommend Select Car Leasing. They have been very helpful and efficient during the whole process. They always called me back and the online portal to track your order is very useful.
This is my 4th lease car through Select Car Leasing. I would firstly say that Richard Taylor who has organised all four purchases was again superb, keeping me informed of all progress from start to finish. His style is professional but very personable which I appreciate. There was a hold up in proceedings due to the finance companies strict procedures but I guess this can be expected in the 'claim' world we live in! I will definitely be using Select Car Leasing again but on my next vehicle I will start organising it a bit earlier than usual. Thanks again Richard very much appreciated, I'm loving the new car!
Great support all the way thank you David
