Claiming back on lease payments due to low mileage caused by Covid lockdowns

samevans32

Not sure if this is a question which has been raised before, but I myself am nearing the end of a 3 year lease of a vehicle. As most will know with leasing a car, you have to quote how many miles you expect to do each year. I obviously overcompensated slightly due to my commute to work, however I knew the allowance I was giving myself wasn't super over the top (12k miles per year). Due to Coronavirus and the lockdowns we have all experienced, I have actually only done (on average) 5k miles per year in this car. Therefore I have obviously been paying a large amount each month believing I was to be using the vehicle and therefore having a great impact on it's overall value by the time I handed the car back. However, arguably I am now giving them a much higher value car back in return than any of us were originally anticipating. Does anybody know whether there is a potential claim to be had to challenge the costs incurred based on the mileage originally stated, as we have been unable to travel due to being locked down for a considerable amount of time. No mention of pandemics within the terms and conditions of my lease, so I'd be interested to hear people's thoughts or whether any one else has wondered the same? Thanks. 

AdrianC

Nope.

You rented a car for three years for £x/month. That rental included 12k miles/year, with extra miles chargeable.

As it happens, you haven't used the car so much. That's the end of it.

neilmcl

As above, there is no "claim to be had". You rented a car (assuming it is indeed a lease and not a PCP agreement) and therefore the final value of the car is totally irrelevant. Take the pandemic out of the equation, what if you're circumstances changed normally, you got a job nearer to home or any other reason your mileage would be lowered, do you think the lease co. should give you a partial refund.

Penelopa.Pitstop

You woke up a bit late. Depending on the finance company, you could have changed the mileage during the contract. Some funders allow the change until last 6 months. So now, it's too late.
Some people still drove during pandemics, so it's not finance company fault that you didn't. I actually exceed contracted mileage in the car I returned last September.

AdrianC

neilmcl said:

(assuming it is indeed a lease and not a PCP agreement)

And, of course, if it is PCP then the "lower than expected depreciation" (if there is such) can be retained by paying the balloon then selling the car.

neilmcl

AdrianC said:

neilmcl said:

(assuming it is indeed a lease and not a PCP agreement)

And, of course, if it is PCP then the "lower than expected depreciation" (if there is such) can be retained by paying the balloon then selling the car.

Precisely.

BOWFER

It used to be common enough for lease companies to charge you the normal excess miles, but also to do a rebate on miles.
Several times I've been able to get out of leases early without any penalties because I was less than expected miles and they'd have been owe me money at the end.
You don't see this any more.

Grumpy_chap

samevans32 said:

nearing the end of a 3 year lease of a vehicle.
(12k miles per year).
actually only done (on average) 5k miles per year in this car.
arguably I am now giving them a much higher value car back in return than any of us were originally anticipating.

So, the original plan was to return a 3yo car at 36k miles.
You will now return a 3yo car at 15k miles

I do argue with your case that you are now giving back a much higher value car. 
Even in normal times, what difference in value would you put on the lower mileage?
How is that difference impacted by many cars being returned and going to onward sale with much lower mileages than anticipated at the outset?

The only option to double-check is that you do have a lease and not a PCP (which may give alternative options).  I understand that, for personal vehicles, PCP is more common than lease, but true lease does exist as well for personal vehicles.

samevans32

Penelopa.Pitstop said:

You woke up a bit late. Depending on the finance company, you could have changed the mileage during the contract. Some funders allow the change until last 6 months. So now, it's too late.
Some people still drove during pandemics, so it's not finance company fault that you didn't. I actually exceed contracted mileage in the car I returned last September.

Shame you didn't think about how to improve your written skills and keeping your tone under control while driving those extra miles. 

samevans32

Thanks everyone else for the thoughts. I was presuming this would be the case but as the world is in a place none of us have experienced before (and clearly many lenders/lease firms do not have global pandemics written into their contracts and terms), I thought it was worth throwing out there and asking the question. Appreciate the views all. 

Penelopa.Pitstop

samevans32 said:

Penelopa.Pitstop said:

You woke up a bit late. Depending on the finance company, you could have changed the mileage during the contract. Some funders allow the change until last 6 months. So now, it's too late.
Some people still drove during pandemics, so it's not finance company fault that you didn't. I actually exceed contracted mileage in the car I returned last September.

Shame you didn't think about how to improve your written skills and keeping your tone under control while driving those extra miles. 

Since I'm not native English speaker, I won't take offence. I enjoyed driving excess miles in Europe last summer :-)