That’s it @MFillingham In fact, it can be even simpler than that. As an example, I was looking at the BMW website and you can get an instant quote for a PCP or PCH deal for any car by inputting your chosen mileage (any figure between 6,000 miles and 50,000 miles p.a.). It always works out cheaper to choose a higher mileage up front than be saddled with a mileage that is lower than you will achieve and then pay a surcharge per mile. Here’s an example on a £35k 1 Series on a PCP (same deposit for both examples);
To up the annual mileage from 10,000 miles p.a. (new Motability cap) to 20,000 miles p.a. (existing Motability cap) adds £2,369.52 to the total payments over 3 years, which equates to 7.9p per mile for the extra 30,000 miles. Conversely, if you paid for a 10,000 miles Pa agreement and exceeded the mileage, your surcharge would be 10.4p per mile, so if you opted for the lower mileage but did 20,000 miles Pa, instead of paying £2,369 more you’d end up paying £3,120 more. Either way, a heck of a lot cheaper than Motability’s 25p per mile!