Mileage with shortlease: choosing the right number of kilometres
With shortlease, you choose more than just a car and contract term. You also choose a mileage allowance that matches how you expect to use the car. Choose too few kilometres and you may face additional costs afterwards. Choose far too many and you could be paying for kilometres you do not need. In this article, we explain how to estimate your mileage, which journeys to include and what to consider when choosing your shortlease contract.
Start with how you expect to use the car
Choosing the right number of kilometres starts with how you are going to use the car, not with the contract itself. First look at your regular journeys, then add the kilometres that are less predictable. Think about client visits, meetings at other locations and business journeys that do not take place every week.
Will you also use the shortlease car privately? Include those kilometres in your estimate as well. For the mileage allowance in your shortlease contract, it does not matter whether a kilometre is driven for business or private purposes: the total mileage of the car is what counts.
Practical tip: base your mileage estimate on your normal driving habits rather than an unusually quiet or busy month. This gives you a more realistic picture of what you will need during the contract period.
How to calculate the number of kilometres you need
If your travel pattern is fairly predictable, estimating your mileage is relatively straightforward. Start with the number of kilometres you drive on average each week and multiply this by the number of weeks you expect to use the car. Then add kilometres for occasional journeys and any private use.
- Commuting: calculate the return distance between home and work and multiply this by the number of days you travel to work.
- Business appointments: estimate how many kilometres you drive each week to visit clients, projects, suppliers or other locations.
- Private use: include expected weekend journeys, family visits and other personal kilometres if private use is permitted.
- Occasional journeys: allow for longer appointments, events, training courses or other journeys that do not happen every week.
Example of a mileage calculation
Suppose you need the car for six months and expect to drive an average of 350 kilometres per week. Over 26 weeks, that comes to approximately 9,100 kilometres. If you also expect around 900 kilometres of longer or unexpected journeys, an estimate of around 10,000 kilometres for those six months would be more realistic.
| Use | Estimated kilometres |
|---|---|
| Average 350 km per week × 26 weeks | 9,100 km |
| Additional and occasional journeys | 900 km |
| Estimated total | 10,000 km |
Look beyond your commute
A common mistake is to focus mainly on the regular journey between home and work. That is a useful starting point, but business drivers often cover a significant number of kilometres outside this fixed route. A client on the other side of the country, a project at another location or several longer journeys each month can quickly add up.
Where possible, look back at your actual driving habits. If you have previously used a company car or private car for similar work, check your mileage readings or journey records from the past few months. This is usually more reliable than estimating everything from memory.
Comparing kilometres per month and per year
Mileage allowances are not always presented in the same way. You may think in kilometres per month, while a contract or comparison may show annual mileage instead. Convert the figures to the same period before comparing your options.
| Average per month | Equivalent per year |
|---|---|
| 1,000 km | 12,000 km |
| 1,250 km | 15,000 km |
| 1,500 km | 18,000 km |
| 2,000 km | 24,000 km |
| 2,500 km | 30,000 km |
With a shortlease contract lasting only a few months, it is especially important to look at your expected use during that specific period. An annual mileage of 24,000 kilometres works out at an average of 2,000 kilometres per month, but that does not mean you need to drive exactly the same distance every month.
Choosing too few kilometres can cost more later
Choosing a lower mileage allowance can seem attractive because it may result in a lower monthly price. But if you already know that you are likely to drive more, this does not give you a realistic picture of your eventual vehicle costs. Depending on your agreement, additional kilometres may be charged afterwards.
That does not mean you should choose a much higher mileage allowance just to be safe. The aim is to estimate your usage as realistically as possible. A contract that matches your expected mileage makes it easier to budget for your business mobility costs in advance.
Choosing too many kilometres is not always a good idea either
Allowing plenty of room may feel safer, but including more kilometres than you are likely to need is not automatically the better option. The selected mileage allowance can affect the monthly price. If you consistently drive less than expected, you may have chosen a contract that does not match your actual use particularly well.
A small margin for unexpected journeys makes sense. A large safety margin without a clear reason is less useful. With shortlease in particular, the period of use is often relatively easy to oversee, which makes it possible to estimate fairly accurately how many kilometres you are likely to drive in the coming months.
Rule of thumb: do not automatically choose the lowest or highest mileage allowance. Choose the option that comes closest to how much you realistically expect to drive.
Allow for changes during the contract period
Your business situation can of course change. You may start a project further from home, visit clients more often or begin working from home more frequently. As a result, the number of kilometres you drive during your shortlease period may be higher or lower than you originally expected.
It is therefore worth checking your mileage during the contract, especially if the agreement runs for several months. If you notice early on that your usage differs significantly from your original estimate, you will at least know where you stand. The options available to you will depend on the terms of your shortlease contract.
Choosing mileage for multiple employees
If you arrange shortlease for several employees, using the same mileage allowance for everyone is not always the best approach. An account manager who visits clients every day has a different driving pattern from an employee who mainly works at the office. Looking at expected usage by role or employee helps your fleet reflect how the cars are actually used.
With several cars, it helps to compare the agreed mileage allowances with the actual mileage at regular intervals. This shows which cars consistently cover more or fewer kilometres than expected. You can then use that information when arranging new contracts or reviewing your business shortlease.
Checklist for choosing your mileage allowance
Before choosing a mileage allowance, it is worth checking your expected use against a few practical points. This helps prevent you from looking only at your regular commute and forgetting other journeys.
- Calculate your average commuting mileage.
- Include client visits and other business appointments.
- Include private journeys if you plan to use the car privately.
- Allow for occasional longer journeys.
- Check previous mileage readings if they are available.
- Review your estimate during the contract period.
Choose a shortlease car that matches how you drive
The right mileage allowance is only one part of choosing a suitable shortlease contract. The contract term, type of car and the way you expect to use it also matter. Considering these factors together helps prevent you from choosing solely on the monthly price while ending up with a contract that is less suitable for your day-to-day use.
View the available shortlease cars or contact us if you would like to discuss which mileage allowance and car best suit your situation.
Frequently asked questions about mileage and shortlease
The right number of kilometres for shortlease depends on your expected total use during the contract period. Include commuting, business appointments, any private use and occasional longer journeys. Where possible, use previous mileage readings to make your estimate more realistic.
Yes, private kilometres count towards the total mileage of the shortlease car. For the contract, the total distance driven is what matters. If you also use the car privately, include those kilometres when estimating your expected mileage in advance.
If you drive more kilometres than agreed, additional kilometres may be charged depending on your shortlease agreement. The way these are settled and the rate that applies depend on the terms of your contract. Check the conditions of your agreement in advance so you know what to expect.
No, choosing more kilometres is not automatically better. A small margin for unexpected journeys can be sensible, but a much higher mileage allowance may not match your actual use. Try to estimate as realistically as possible how much you expect to drive during the contract period.
First calculate how many kilometres you drive on average per week or month and multiply this by the six-month contract period. Then add any expected additional business and private journeys. If you drive an average of 1,500 kilometres per month, for example, you would cover around 9,000 kilometres in six months, excluding any additional journeys.