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    • Herringbone
    • By Herringbone 7th Oct 17, 1:10 PM
    • 14Posts
    • 6Thanks
    Herringbone
    Excess contract mileage: Anyone successfully negotiated?
    • #1
    • 7th Oct 17, 1:10 PM
    Excess contract mileage: Anyone successfully negotiated? 7th Oct 17 at 1:10 PM
    Hi all,

    I took out a 4-year personal contract hire in Sept 2013 based on 10k miles per annum (accurate at the time). A few months later I was offered a new job, with a longer commute and MUCH more business mileage (around 30k a year).

    I called my finance company (Volvo Car Leasing, one of Lex's trading names) and asked to amend my payments based on the new mileage but they told me this was not possible and refused to consider an increased payment. A very rough estimate of the increase would have been £60 - £80 per month, so £3k - £4k over the term of the contract.

    I now have an end of contract bill for just under £10k.

    Now, I'm not complaining about the terms of the contract - I signed up to it with my eyes open, and if I end up paying it then fair enough and I'll put it down to experience.

    I'm planning at least a phone call to chance my arm though - I was clearly willing to pay more all through the contract and the charge they want from me dwarfs any effect on the value of the car, which I returned in excellent condition.

    So I'm just wondering if anyone's had any success negotiating over this kind of thing.

    Thanks all!
Page 1
    • footyguy
    • By footyguy 7th Oct 17, 1:45 PM
    • 3,883 Posts
    • 1,543 Thanks
    footyguy
    • #2
    • 7th Oct 17, 1:45 PM
    • #2
    • 7th Oct 17, 1:45 PM
    Hi all,

    I took out a 4-year personal contract hire in Sept 2013 based on 10k miles per annum (accurate at the time). A few months later I was offered a new job, with a longer commute and MUCH more business mileage (around 30k a year).

    I called my finance company (Volvo Car Leasing, one of Lex's trading names) and asked to amend my payments based on the new mileage but they told me this was not possible and refused to consider an increased payment. A very rough estimate of the increase would have been £60 - £80 per month, so £3k - £4k over the term of the contract.

    I now have an end of contract bill for just under £10k.

    Now, I'm not complaining about the terms of the contract - I signed up to it with my eyes open, and if I end up paying it then fair enough and I'll put it down to experience.

    I'm planning at least a phone call to chance my arm though - I was clearly willing to pay more all through the contract and the charge they want from me dwarfs any effect on the value of the car, which I returned in excellent condition.

    So I'm just wondering if anyone's had any success negotiating over this kind of thing.

    Thanks all!
    Originally posted by Herringbone
    Hopefully you have already been appropriately recompensed for any additional business mileage by your employer.

    If not, you can still claim a tax allowance
    https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances
    • Herringbone
    • By Herringbone 7th Oct 17, 2:00 PM
    • 14 Posts
    • 6 Thanks
    Herringbone
    • #3
    • 7th Oct 17, 2:00 PM
    • #3
    • 7th Oct 17, 2:00 PM
    Thanks, footguy

    My previous employer worked a simple system which paid out for business miles at the HMRC rates. It worked out much better than their company car scheme which was why I switched to my own car in 2013.

    My current employer uses a car allowance plus fuel card, and we pay for our personal fuel use on a mileage basis. After tax the car allowance doesn't even come close to covering the hire payment, let alone servicing and repairs, which is why I'm switching to a company car this time.

    But my question was really about whether anyone has had any luck negotiating a reduction in large excess mileage charges? It's worth at least a try and I've always found MSE to be a great way of being forearmed.
    • bigadaj
    • By bigadaj 7th Oct 17, 3:29 PM
    • 10,803 Posts
    • 7,100 Thanks
    bigadaj
    • #4
    • 7th Oct 17, 3:29 PM
    • #4
    • 7th Oct 17, 3:29 PM
    If it's a lease then you can't presumably VT it to avoid the enforcement of excess mileage charges.

    There could be an argument that their charges should reflect the actual loss suffered due to you exceeding the mileage within the contract. So it would be worth trying to get comparison figures from autotrader say of cars with the mileage so we're talking about, might indicate that their actual loss is say £6k rather than £10k.
    • Herringbone
    • By Herringbone 7th Oct 17, 3:36 PM
    • 14 Posts
    • 6 Thanks
    Herringbone
    • #5
    • 7th Oct 17, 3:36 PM
    • #5
    • 7th Oct 17, 3:36 PM
    That's the route I was thinking too, bigadaj - just discussing what they've actually lost and pointing out that I offered years ago to pay a higher rental to cover this.

    It's contract hire, not lease (assuming they're different, I'm no expert!), and ended in September, the car's away. I just got the mileage bill yesterday and they're wanting to DD the cash on the 17th.
    Last edited by Herringbone; 07-10-2017 at 9:10 PM.
    • Lucky Duck
    • By Lucky Duck 7th Oct 17, 4:28 PM
    • 126 Posts
    • 73 Thanks
    Lucky Duck
    • #6
    • 7th Oct 17, 4:28 PM
    • #6
    • 7th Oct 17, 4:28 PM
    Out of interest how much was GFV, it might have been better to buy the car and then sell it on
    • flashg67
    • By flashg67 7th Oct 17, 5:58 PM
    • 2,300 Posts
    • 1,505 Thanks
    flashg67
    • #7
    • 7th Oct 17, 5:58 PM
    • #7
    • 7th Oct 17, 5:58 PM
    Out of interest how much was GFV, it might have been better to buy the car and then sell it on
    Originally posted by Lucky Duck
    If it was a Volvo contract hire, it will have been a fixed term & payments and just return at the end with no GFV or purchase option.

    I'd be making the call, once armed with evidence of your previous efforts and valid estimate of the true loss.
    • Herringbone
    • By Herringbone 7th Oct 17, 9:13 PM
    • 14 Posts
    • 6 Thanks
    Herringbone
    • #8
    • 7th Oct 17, 9:13 PM
    • #8
    • 7th Oct 17, 9:13 PM
    Yes, what flashg67 said.

    OK sounds like my original plan was on the right track. The way I'm looking at it anything at all they can reduce it by will be a good result, and it would certainly maintain my opinion of them.

    I have to say I was a bit surprised they point blank refused to adjust the payments back then, any other finance I've had has usually been flexible about paying more in that they'd rather have the security of your monthly payment than aiming to get back a huge one-off extra payment in several years' time.
    • loskie
    • By loskie 8th Oct 17, 7:06 AM
    • 1,159 Posts
    • 698 Thanks
    loskie
    • #9
    • 8th Oct 17, 7:06 AM
    • #9
    • 8th Oct 17, 7:06 AM
    IIRC Volvo's extra miles are costly (14ppm?). Some of you are confusing PCP with PCH re VTing.
    Lex do have the facility where you can buy their ex lease cars. If it's a good car and you owe them £10k for miles I would consider buying it.

    The inflexibility is likely to it being Lex doing the deals on behalf of Volvo whereas VW group, BMW and Merc use their own finance co's. VW are known to sell extra miles mid term at lower than normal rates. Their rates are already pretty low at 8ppm for extra miles.
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