PCP mileage limits explained
Your PCP mileage limit is the total number of miles you've agreed to drive over the whole contract — your annual allowance multiplied by the length of the agreement. It's checked once, at the end, and it only costs you money if you hand the car back over the limit.
Here's how the limit is worked out, why it exists, when it actually matters, and how to find yours.
Put it into the PCP mileage calculator with your current odometer reading to see if you're on track and what any excess would cost.
How your total mileage limit is worked out
Deals are quoted as an annual mileage, but the limit that counts is the total:
Annual allowance × contract length in years = total mileage limit
| Contract length | Annual allowance | Total limit |
|---|---|---|
| 24 months | 8,000 miles | 16,000 miles |
| 36 months | 10,000 miles | 30,000 miles |
| 48 months | 12,000 miles | 48,000 miles |
These are examples, not recommendations. Many deals are quoted at somewhere between 8,000 and 12,000 miles a year, but lenders offer a wider range in both directions.
It's measured across the whole term, not year by year. If you drive 7,000 miles in year one and 13,000 in year two of a 10,000-a-year deal, you've used exactly what you were allowed. Only your total at the end counts.
What about used cars?
On a used car, the allowance is typically counted from the odometer reading when the agreement starts, not from zero. If the car had 20,000 miles on it at the start and you have a 30,000-mile allowance, the limit is reached at 50,000 on the clock. Check your agreement, and enter the start mileage in the calculator if it isn't zero.
Why the limit exists — and why it changes your monthly payment
At the start, the finance company sets a guaranteed future value (GFV): its estimate of what the car will be worth at the end. More miles means a lower future value, so the limit you choose feeds directly into your payments.
- Higher allowance → lower expected future value → higher monthly payments
- Lower allowance → higher expected future value → lower monthly payments, but more risk of an excess charge
The excess mileage charge is how the lender recovers the value the car has lost beyond what it assumed. It's the mirror image of the higher payments you'd have made for a bigger allowance.
When does mileage actually matter?
Mileage only affects a PCP at the end, and what happens depends on what you do:
| At the end you… | Does the limit matter? |
|---|---|
| Hand the car back | Yes — you're charged for every mile over, at the rate in your agreement |
| Part-exchange it | Indirectly — no excess invoice, but high mileage lowers the dealer's valuation |
| Pay the final payment and keep it | No — the contract limit no longer applies, though mileage still affects what the car is worth |
Being under your limit doesn't earn a refund, but it does leave the car worth more if you part-exchange or sell.
How to find your mileage limit
- Your agreement — look for "mileage allowance", "annual mileage" or "total mileage". The excess mileage rate (pence per mile) is usually listed next to it.
- The pre-contract information the dealer gave you before you signed.
- Your finance company — a quick call (or their online account, if they have one) will confirm the limit, the rate, and whether the rate includes VAT.
If you don't know who your finance is with, check your bank statements for the monthly payment, or ask the dealer who supplied the car.
Choosing a limit when you take out a PCP
If you're about to sign, or thinking ahead to your next car, the limit is worth getting right, because it's cheap to add miles at the start and expensive to run out at the end.
- Start from what you really drive. Compare the odometer at two dates a year or more apart on your current car, or use your last MOT reading against the previous one.
- Think about what's changing. A new job, a house move or a growing family can all shift your mileage.
- Ask for quotes at two or three allowances. Compare the extra monthly cost of a higher allowance with what the excess charge would cost you if you ran over.
- Add a buffer rather than aiming to hit the limit exactly.
See what happens if you go over your PCP mileage, or check your pace in the calculator.
Frequently asked questions
What is a typical PCP mileage limit?
Many PCP deals are quoted at somewhere between 8,000 and 12,000 miles a year, but lenders offer a wider range in both directions. The right limit is the one that matches how much you actually drive.
Is the PCP mileage limit per year?
It's quoted per year, but it's measured across the whole contract. Only your total mileage at the end counts, so under-driving one year offsets over-driving another.
Does my mileage allowance affect my monthly payments?
Yes. A higher allowance means the car is expected to be worth less at the end, which raises your monthly payments. A lower allowance keeps payments down but increases the risk of an excess mileage charge.
Can I change my PCP mileage limit during the contract?
Sometimes. Policies vary between lenders, and a change usually means your payments are re-quoted, so ask your finance company early rather than near the end. It isn't guaranteed.
Does the mileage limit matter if I keep the car?
Not for the contract. If you pay the final payment and keep the car, no excess mileage charge applies. Mileage will still affect what the car is worth.
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.