How Does Mileage Work With A Car Subscription?

Overview - Monthly Mileage With Wagonex 

What do you need to know about mileage when looking for a subscription on Wagonex.com?

• When browsing our range of vehicles you can select your monthly mileage package. 
• Most of our suppliers start at 1,000 miles included as standard. 
• You can change your mileage package if you need to, but you will have to pay an additional cost.
• If you exceed your monthly mileage at the end of your contract you will pay excess mileage charges.
• Excess mileage costs vary by vehicle supplier but range from 10p-35p per mile - check your contract.
• Don't worry about the monthly limit, just stay within the total mileage limit for your subscription term.

Understanding Mileage Packages in Car Leases and Subscriptions

In the realm of car leases and subscriptions, mileage packages play a crucial role in your overall package and payment plan. A mileage package is designed to accommodate the varying needs of drivers, offering flexibility and cost-effectiveness. We take a look into the considerations of mileage packages, understanding how they function, and unraveling the pros and cons associated with their inclusion in car leasing and subscription agreements.

With subscription, the majority of our suppliers allow adjustments to mileage packages during the term but this will impact your monthly price so it’s always worth reaching out to your vehicle supplier to discuss your options. 

Mileage Packages Defined

Mileage packages are optional add-ons that come at an additional cost to increase your mileage allowance if the standard amount included in your monthly cost isn’t enough to suit your needs. These packages usually offer predefined increments so that you can increase your mileage by a few hundred miles per month to cover your usage for the term of the vehicle. 

How Mileage Packages Work With Wagonex

Car leases typically come with a predetermined annual mileage limit, the subscription model follows the same format but often comes with a higher mileage allowance within the monthly price versus a typical lease, offering ultimate flexibility and inclusivity in the monthly cost.

The monthly mileage you see when choosing your subscription vehicle is the maximum number of miles a customer is allowed to drive during the subscription contract. For example, if you take out a 1,000 a month mileage package as part of a 6 month subscription, as long as you don’t exceed 6,000 miles over the course of the contract you won’t be expected to pay any additional fees. This might mean driving 800 miles one month, and 1,200 miles the next depending on your needs and driving habits. The bigger the monthly mileage allowance, the more you’ll need to pay for your subscription but this is made clear when choosing your vehicle. 

Similar to a lease or PCP contract, exceeding this limit incurs additional charges per mile and this cost depends on the vehicle supplier, you’ll be able to find this information in your contract.

Benefits of Mileage Packages

Flexibility: One of the primary advantages of mileage packages is the flexibility they provide. If you foresee the possibility of exceeding the allotted mileage you can opt for a package that suits your needs which is more cost effective than paying for additional miles at the end of the term.

Managing Costs: By purchasing a mileage package upfront, you can better predict and budget for your overall vehicle and running costs. This predictability is particularly beneficial for individuals who rely on their vehicles for work or daily commuting and want to avoid unexpected financial burdens at the end of the lease or subscription term.

Tailored to Your Needs: Mileage packages are not one-size-fits-all; they can be tailored to individual preferences. Choose a package that aligns with your anticipated driving patterns, avoiding the need to pay for excessive mileage that may never be used, particularly if your vehicle usage is low. 

Drawbacks of Mileage Packages

Additional Cost: While mileage packages offer cost predictability, the upfront cost of purchasing additional miles can be a deterrent. It adds an extra layer to the initial expenses of getting a subscription vehicle. 

Unused Miles: Another potential drawback of mileage packages is that if the purchased miles go unused, you have essentially paid for a service that wasn't fully utilised. This can be seen as a sunk cost and may lead to a feeling of financial inefficiency.

Limited Adjustability: Mileage packages are typically offered in predefined increments. You may find it challenging to select an exact mileage figure that perfectly aligns with your needs. This lack of fine-tuning can result in either overestimating or underestimating required miles.

Considerations For Estimating Your Mileage

Driving Habits: Have a think about your typical driving habits and anticipate any lifestyle changes that might affect mileage. Those with unpredictable schedules or who plan to use the vehicle for frequent road trips may find mileage packages beneficial. A great way is to look at the mileage clock on your current vehicle and to work out the increase since you’ve been driving it, and divide by the number of months you’ve had the car.

Financial Planning: Consider whether the upfront cost of a mileage package aligns with your financial planning. Evaluate the potential savings compared to the cost of overage charges to determine the most cost-effective approach.

Reducing Miles: Assess your driving habits for efficiency. Consider carpooling, public transportation, or alternative modes of travel for routine activities to potentially reduce your overall mileage and potentially bring down your costs.

Contract Duration: The length of your contract term plays a crucial role as you have less wiggle room. For shorter lease durations, you might find it easier to estimate your monthly mileage accurately, potentially minimizing the need for additional miles.

Comparison Shopping: Compare the overall costs of mileage packages in leases versus subscriptions. Subscription models that include mileage as part of the subscription fee may provide a more straightforward and inclusive pricing structure, and you often get a higher annual mileage than with a typical lease.

Online Calculators: Online mileage calculators are available to assist in estimating annual driving distances. By inputting key routes such as daily commute and weekend travel you can use these to estimate monthly or annual mileage. 

Anticipating Life Events: Life events such as relocations, family expansions, or changes in social activities can significantly affect your driving habits. Anticipate these events to better estimate the impact on your annual mileage.

Revisit Estimates Regularly: Your estimated mileage isn't static, and with the flexible world of subscription it might be worth keeping an eye on your mileage if you plan to change your vehicle regularly or extend a current subscription. 

What is an Excess Mileage Charge?

An overmile charge is often issued at the end of a lease agreement when you return the vehicle. It will only be applicable if the mileage on the odometer exceeds the predetermined mileage allowance for the lease duration. This depends on the mileage package you chose at the beginning of the contract. The same applies to a subscription vehicle, but if you keep a close eye on your monthly mileage you can arrange for your package to be changed before the end of the contract which might be more cost effective than paying per mile.

Typically, the charge is specified in your contract and is usually calculated in pence per mile. So, if you surpass the agreed mileage allowance, the excess miles will be multiplied by the pence per mile rate, resulting in the total charge.

If you have any questions on mileage you can discuss your mileage requirements with one of our customer service members.

Summary

In the dynamic world of car leases and subscriptions, mileage packages are common. While they offer flexibility and cost predictability, it’s all about choosing the right mileage allowance to suit your needs. 

As the automotive industry continues to evolve, the role of mileage packages may see further refinements and innovations. Ultimately, the success of incorporating mileage packages into car leases and subscriptions lies in the ability of consumers to make informed choices that align with their driving habits and financial preferences. Armed with accurate estimates and a thoughtful approach to mileage packages, you pave the way for a smoother and more satisfying driving experience.