Cost Per Mile: Understanding True Vehicle Expenses in Long‑Term Contracts

"Cost per mile" sounds simple. The version most businesses calculate is wildly understated. The version that matters in long‑term contracts includes everything — including the costs that don't appear on the obvious invoices.

What a real cost‑per‑mile calculation includes

Vehicle finance or capital cost
Depreciation
Insurance, VED, MOT
Routine servicing and tyres
Major repairs and parts
Compliance (DVS permits, AdBlue, calibration)
Downtime cost during repairs
Driver pay during VOR
Admin and supplier management overhead

When you load all of those in, owned vehicles' cost per mile is usually higher than businesses expect.

Why CoreHire often comes out ahead

CoreHire packages the vehicle, maintenance, MOT, breakdown cover and replacement into a fixed monthly rate. Once you divide that rate by realistic monthly mileage, the cost per mile is:

Lower in variance
Easier to forecast
Easier to attribute to customers, projects or routes

Where to be honest with the maths

Don't compare the lease rate to your "out of pocket" maintenance bill — compare it to the real total cost
Include the cost of the time your team spends managing it
Include the financial cost of downtime, not just the repair invoice

Why we'll happily run the numbers with you

We'll build a transparent comparison using your real fleet, real mileage, and real maintenance history.

Want a cost‑per‑mile comparison you can show the board? Send us your fleet list — we'll do the maths.

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The Range

An extensive fleet covering every hire type and business need. From small vans perfect for tight urban deliveries to 26-ton curtainsided HGVs for major logistics operations, we have the right vehicle for your job.

Bespoke solutions: custom branding and livery for your vehicles, tailored fleet configurations for specific contract requirements, and specialist functions adapted to your operation.

Our approach is built on flexibility and partnership, not off-the-shelf solutions. Whether you need standard spot hire or something uniquely configured for your business, we'll work with you to deliver exactly what you need.