Excess Mileage

Excess Mileage

Certain finance agreements have an excess mileage charge. This is expressed as Pence Per Mile and is charged when your vehicle exceeds the agreed mileage. For example, 1,000 miles over contracted mileage at the end of the agreement, charged at 5.0p per mile works out £50.00. This is the charge you have to pay.

This can be pooled for a business user when multiple agreements are taken out and returned within a set timescale. As a business running a large fleet of vehicles, you may wish to pool the mileage of your vehicles. This helps keep down your running costs. Here is an example. One driver may do 6,000 miles under the agreed contracted mileage and another may do 8,000 miles over. When these two cars are returned you can contra one against the other, so you only get a bill for 2,000 miles over mileage.