Mileage limits can make a large difference to the real cost of a van lease. A low monthly rental is not necessarily good value if the business will regularly exceed the agreed mileage.
Estimate mileage from real work
Use existing fuel, telematics or service records where possible. Tendering for a low-mileage contract while knowing the van will work harder simply stores up a later bill.
Understand the charge
Check the pence-per-mile rate and whether different bands apply. Multiply it by a realistic overrun so you can compare the true cost with a higher-mileage agreement.
Allow for business growth
New contracts, wider delivery areas or additional sites can push mileage up quickly. Build some headroom into the forecast if the business is expanding.
Review before renewal
If the current agreement has repeatedly exceeded mileage, use that evidence when choosing the next vehicle and finance arrangement.
Example excess-mileage bill
A van is contracted for 12,000 miles a year but averages 16,000. Over three years that is 12,000 excess miles.
| Illustrative excess rate | Possible charge |
|---|---|
| 8p per mile | £960 |
| 12p per mile | £1,440 |
| 18p per mile | £2,160 |
This is why realistic mileage forecasting matters more than choosing the lowest advertised monthly rental.