What is a mileage extension?
In the context of car leasing, mileage extensions refer to adjustments made to the annual kilometre allowance specified in the leasing contract.
This adjustment is particularly relevant for lessees who realise they will exceed their initially chosen mileage cap. For instance, a customer who initially opts for a 10,000 km annual allowance might find their actual driving needs surpass this limit. Continuing under the original allowance could lead to substantial excess mileage charges at the end of the lease when the vehicle is returned.
It's important to note that mileage extensions can be expensive, underscoring the importance of selecting an appropriate kilometre package at the start of the lease. While unforeseen changes in life circumstances can increase driving needs, making an informed decision on the mileage package from the outset is crucial. The recommended strategy is to opt for a higher kilometre allowance than anticipated to mitigate the risk of incurring additional charges for excess mileage. For example, if a lessee expects to drive 11,000 km annually, choosing a 15,000 km package is advisable.
Considering that the average annual mileage for Swiss drivers is around 12,500 km, here's a guideline for selecting a mileage package based on different usage patterns:
- 10,000 km: Suitable for those who primarily use their car for weekend activities and weekly shopping.
- 15,000 km: Ideal for individuals who use their car for shopping, weekend getaways, and occasional commuting.
- 20,000 km: Best for those who rely on their car for daily commuting in addition to weekend use.
Currently, gowago.ch does not offer the option for mileage extensions, making it all the more critical for customers to accurately estimate their yearly driving distance to avoid unexpected costs at the lease's end.