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Each lease rental price is calculated based on the specific vehicle, the duration of the lease and the annual mileage allowance. By taking these combined factors into account we can then calculate a lease rental which takes into account the drop in value of the vehicle (depreciation) over the lease duration. The mileage of the vehicle is a key factor when estimating the value of vehicle when it is returned at the end of the period as would be the case if you owned the vehicle or were buying a second hand vehicle. If your vehicle is returned with more mileage than the agreed amount a small charge per mile will be made to reflect the lower sale value of the vehicle. This is called the excess mileage pence per mile (PPM) rate and will be clearly stated on your Hire Agreement. We can also update you on the amount at quote and order stage. The PPM excess charge is specific to each vehicle. the lease duration and the contracted annual mileage. The PPM will also vary dependant upon if the Hire Agreement includes the addition of the Maintenance and Service pack as this pack price is also dependant upon annual mileage.
An example as to how excess mileage is calculated is as follows : Excess mileage is 6p per mile and at the end of your Hire Agreement your total mileage is 1,000 miles over the agreed contract mileage, an additional excess mileage charge of £60 ( 6p X 1,000 miles) will be made by the finance company. If you have any questions regarding excess mileage charges then please get in touch with one of our customer service executives who will be happy to help.
