Am I over my PCP mileage? How to tell — and what to do about it
Most people sign a PCP agreement, forget about the mileage limit, and only start to worry when the end of the contract is looming. If that's you right now, this is the guide you need.
We'll show you how to work out where you stand, what any excess charges might cost, and what your options are.
Use the PCP mileage calculator — enter your contract details and current odometer reading, and it'll tell you immediately whether you're ahead of pace, behind, or bang on track.
How PCP mileage works
When you took out your PCP, you agreed an annual mileage limit — say, 10,000 miles a year. The finance company uses this to predict what the car will be worth at the end of the contract, which sets your guaranteed future value (GFV) and therefore your monthly payments.
The important thing to understand: mileage isn't checked annually. It's totalled up at the end. So if you're under in year one and over in year two, those cancel each other out. What matters is where you finish overall.
If you hand the car back over your agreed total mileage, you'll be charged for every extra mile — typically somewhere between 5p and 30p per mile, depending on your agreement and the car. That adds up fast.
How to check if you're on track right now
The simplest way is to compare your actual mileage against the "straight-line" pace your contract assumes.
Here's how to do it manually:
- Work out your total mileage allowance (annual limit × contract length in years)
- Divide that by the total number of months in the contract
- Multiply by the number of months you've completed
- Compare that figure to your current odometer reading (minus your starting mileage)
Example: You have a 36-month contract at 10,000 miles a year (30,000 total). 18 months in, you should have done 15,000 miles. If your odometer shows you've covered 17,500 miles, you're 2,500 miles over pace.
Or just use the calculator — it does all of this automatically and projects where you'll end up if you keep driving at your current rate.
What might the excess charges cost?
Your exact charge rate is written in your PCP agreement — look for "excess mileage charge" or "pence per mile". If you can't find it, call your finance company and ask.
As a rough guide:
| Car type | Typical charge rate |
|---|---|
| Small/economy cars | 5–10p per mile |
| Mid-range cars | 10–15p per mile |
| Luxury/performance cars | 15–30p per mile |
So if you're 5,000 miles over on a mid-range car at 12p per mile, that's a £600 bill waiting for you at handover. On a premium car at 20p per mile, the same overage would cost £1,000.
What to do if you're over pace
You've got a few options, and the right one depends on how far over you are and how much of the contract you have left.
1. Contact your finance company about a mileage extension
Most finance companies will let you increase your mileage allowance mid-contract — you'll pay a bit more each month, but the per-mile cost is usually lower than the excess charge rate. It's worth calling to get a quote, especially if you've got a year or more left.
2. Drive less in the remaining months
If you're only slightly over pace, adjusting your habits could bring you back in line. The calculator will show you exactly what monthly mileage you'd need to stay within your allowance from here.
3. Part-exchange or pay the balloon
If you're planning to part-exchange the car at a dealership rather than hand it back to the finance company, excess mileage affects the car's value rather than triggering a direct charge. The dealer will simply offer you less for it — which may or may not be worse than the excess charge. Worth modelling both scenarios.
If you're planning to pay the balloon and keep the car, mileage doesn't matter at all — you've bought it outright.
4. Budget for the bill
If you know you're going to exceed your limit and can't avoid it, the most sensible move is to calculate what you're likely to owe and set that money aside now. No surprises at handover.
The PCP mileage calculator will show you your current pace, your projected end mileage, and an estimated excess charge — in about 30 seconds.
Frequently asked questions
Does PCP mileage reset each year?
No. The mileage limit is measured across the whole contract, not annually. If you do fewer miles in one year, those carry over and offset any overage in another year. Only your total at handover matters.
What if I'm under my mileage allowance?
You won't get a rebate — unfortunately, unused miles don't translate into a refund. But being under means you'll have a cleaner handover and more equity in the car if you're planning to part-exchange.
Do excess mileage charges apply if I use voluntary termination?
This is a genuinely grey area. Legally, if you voluntarily terminate your PCP under Section 99 of the Consumer Credit Act (once you've paid 50% of the total amount payable), your main obligation is to return the car in good condition. Whether mileage charges are enforceable in that scenario has been disputed in courts — but expect the finance company to try. It's worth getting advice before going down that route.
Can I check my mileage allowance without digging out my paperwork?
Call your finance company directly — they can confirm your contracted mileage, your charge rate, and your current projected overage. It takes about five minutes and is worth doing if you're concerned.
This article is for informational purposes only and doesn't constitute financial advice. Always check your own agreement or speak to your finance provider for figures specific to your contract.