How Mileage Works with Car Subscriptions?

How Mileage Works with Car Subscriptions

When it comes to renting a car via a car subscription service, it’s no secret that the whole process is fast, convenient and offers a more streamlined way to budget as everything all comes under one concise monthly fee. There is one thing that may have an impact on how much you need to pay out when the bill is due at the end of the contract’s terms – and that’s mileage fees.

How Mileage Works with Car Subscriptions?

What is the mileage?

Mileage is a key factor for vehicles of all shapes and sizes and can act as an indicator of how much a particular make or model is likely going to cost to run. This is because it lets the driver know exactly how many miles can be travelled per litre of petrol or diesel – and the more it has, the further it can go on lower levels of fuel.

What is the mileage

On the opposite side of the scale, a lower mileage will signal that a car will travel less of a distance on more fuel, so it gives a more rounded insight into the overall costs associated with buying a car and having ownership (or, in this case, the subscription contract). It is often used to signal the value and even potential longevity of a vehicle, as mileage will increase with age – and this is one of the larger reasons why cars depreciate as soon as they leave the dealership.

How does this affect car subscription costs?

Firstly, companies providing car subscriptions will want to ensure that their vehicles are performing at their best, and the fact of the matter is that you driving them will affect their value. This has led many providers to take mileage into consideration as an additional factor when designing leasing contracts. Many will outline the number of miles included within the subscription package, which typically sits at an average of around 1000.

This could be more or less, often depending on the vehicle itself and its age, fuel consumption and other factors. Issues arise when you use your vehicle frequently and go over the allocated amount – and fees will be charged to the account for this (market research suggests that this is likely to be between 20p to £1.25 per mile).

How does this affect car subscription costs

The good news is that, while car subscriptions have a whole host of advantages, they take the extra steps to ensure that their customers won’t be charged through the roof or be met with unexpected lump sums on top of their agreed-upon bills, so mileage limit upgrades can be bought to increase the number awarded and minimize outgoings.

The good news is that with such packages, any unused miles can often be rolled over onto the following month or months, depending on your contract, so the extra expenditure won’t go to waste (be sure to check the terms with your provider before signing up, so you’re aware of your rights/limitations).

Is adding a mileage limit upgrade a good idea?

The answer to this question will certainly depend on your needs as a driver and how much you are going to be using your vehicle. For many, having the safety net of a package outweighs the cons of not having one – and the fact that extra miles won’t be lost when the subscription ends (unless you cancel it, of course) seems to be a more attractive factor that makes them worthwhile.