Customer Service Advisor
Chat with us

Our specialist team are available to help

We no longer support this web browser. Upgrade your browser for a better experience.

You won't get a better deal anywhere else!
You won't get a better deal anywhere else!

Understanding Van Leasing And How To Pick The Perfect Mileage Limit

Understanding Van Leasing And How To Pick The Perfect Mileage Limit


Table of Contents

1. Factors to consider when setting your van mileage limit

2. How excess mileage charges are calculated

3. The relationship between mileage and van wear and tear

4. Flexibility and adjustment of mileage limits

5. How to manage your mileage throughout your van lease

6. Van leasing deals at Vansdirect


Van leasing is a great way to drive a new van every few years without the associated costs of ownership. You get to enjoy all the latest functionality and technology, without having to pay a fortune.

Van lease agreements are structured with an initial rental - minimum three months rentals in advance. This is followed by fixed monthly rentals – the terms of which you can decide.

These can be paid over two to five years, and at the end of the agreement, you can act as an agent to sell the van and receive 97.5% of sales proceeds in excess of the balloon payment in your contract.

When agreeing your contract, you’ll need to set an estimated mileage. But how do you know what to go for?

In this article, we take a look at all you need to know about van leasing. From choosing your estimated mileage and managing it, to making any adjustments.



Factors to consider when setting your van mileage limit

Estimated mileages help lenders assess the residual value of a van at the end of a lease agreement. It’s important to get this right as you’ll be charged extra for any miles covered over this limit.

But how do you pick the perfect mileage for your van lease? When setting your estimated mileage, there are a few things you’ll need to consider:

  • The estimated mileage you give should be realistic, as this will be used to determine excess mileage charges if you go over
  • For any extra miles you travel beyond the agreed amount, you will need to pay additional costs
  • Your estimated mileage is pooled throughout the contract and doesn’t have to be divided equally. Most van lease agreements include mileages from 10,000 – 30,000 miles.
  • You might be able to make changes to this later if you need to extend or adjust your van mileage, however this is usually at the discretion of the lender and can’t be guaranteed.


When setting an estimated van mileage, think about how often you will use the van and try to be as realistic as possible. We recommend working out how far you drive daily, weekly, and yearly on average to help you set an accurate limit.



How excess van mileage charges are calculated

You’ve set your estimated van mileage, but what happens if you go over this? It’s not the end of the world, though there will be added costs incurred which you’ll have to pay.

These will be calculated on a pay-per-mile basis, which may vary depending on the manufacturer. Other factors considered include your finance provider and the number of miles on the reader when the van is returned.

Cost per mile is often around 10p,but can be higher. If you do exceed your estimated van mileage, not to worry – most excess mileage charges will be fairly reasonable.

Make sure to notify your provider if you go over the estimated mileage provided, and to pay any added costs promptly.



The relationship between mileage and van wear and tear

So why are estimated mileages so important? The more miles you cover during your van lease, the less it will be worth at the end.

This is because vans generally suffer more wear and tear the more they are driven. So, an estimated mileage helps lenders assess the van’s residual value once the agreement ends.

It’s also why you’ll be charged extra if you go beyond the mileage limit provided, since the van’s residual worth will be less than expected.



Flexibility and adjustment of van mileage limits

When it comes to mileage limits, there is some flexibility. This means that if you think you might exceed the limit, you can adjust your agreement to avoid paying extra costs.

This is at the discretion of the lender, and you’ll need to take it up with them plenty of time in advance. This may be easier to do with some funders more than others. For instance, some funders may not allow changes for the first six or 12 months.


Van mileage limit



How to manage your van mileage throughout your lease

The best way to avoid having to pay excess mileage charges? Be realistic and make sure you stick to the initial mileage figure provided.

If your agreement includes a greater number of miles, you’ll want to ensure you have proper care and maintenance in place. A great thing about van leasing is that maintenance packages can be added to the contract.

Additionally, if you move house during your contract, you’ll need to update all information as this could affect your van mileage limit.

Remember – the higher the number of miles on your van at the end of the contract, the less it will be worth. Plus, the less you’ll receive in resale proceeds.



Van leasing deals at Vansdirect

At Vansdirect, we offer a selection of van leasing deals that can be tailored to your business needs. Not sure if a van lease is for you? Read our guide to van finance options to help you decide.

Our flexible van lease agreements help make the process of getting your van smooth and stress-free. Drive away in the latest model from manufacturers including Ford, Citroen, Renault, PEUGEOT, Fiat, Vauxhall, and more.

In addition to our flexible van finance options, we also offer maintenance, fuel cards, van racking, and van insurance. Explore our other services and take care of all aspects of your business!

We’re also committed to offering you the very best price for your new van with our Price Promise This is applicable to vehicles included on our van leasing deals page that display the Price Promise icon. Where you see this icon, if you find a better price elsewhere, we’ll match it!

With our friendly customer service team, you’ll have all the support needed each step of the way. From finding the perfect van for your needs, to agreeing your finance terms, and beyond. If you have any questions about van leasing or anything else, get in touch with a member of our team!

Related Articles

Van Leasing Wear and Tear Guidelines from Vansdirect

How Van Leasing Can Help Your Business Grow

What To Look For In A Van Leasing Company

14 Van Leasing Myths Debunked - Find Out the Common Misconceptions

Van Leasing Vs Buying a New Van - Which One to Choose?

Van Leasing Deals

Explore all of our new van leasing deals available today

Enquire Online

Know what you're after? Request an immediate quote

Still Not Sure?

Speak with our friendly team for further information and advice

Sign up to receive the latest van leasing deals

Enter your email address to avoid missing out on the best deals available each month


By asking to receive emails from Vansdirect you agree that we may use your email address to send you notifications when we publish a shareholder announcement on our website. We may also send you other news stories about Vansdirect from time to time. You can unsubscribe at any time by following the link on the emails. We will not use your email for any other purpose.