At the beginning of your personal contract purchase (PCP) contract, you'll need to agree to a mileage limit over the term of the agreement.

The higher your agreed mileage limit, the higher your monthly payments. This is because a higher-mileage car will likely be worth less when it’s sold, which increases the difference in value between the car’s price at the start of the agreement and its estimated value at the end – a key factor in determining your monthly payments.

On the flip side, if you set your mileage limit too low and go over it, you could end up with excess mileage fees when you hand the car back to us at the end of your agreement. This is why it’s important to work out your annual mileage as it’ll help you pick a reasonable mileage limit and avoid excess mileage charges.

Keep in mind that the mileage is only checked at the end of your agreement and not each year. This means that you can go over the limit in one year if you make up for it by travelling fewer miles in subsequent years.