THIS sounds useful for any business: an end to excess mileage charges.
Excess mileage charges occur at the end of a contract hire period when you may have overstepped your agreed mileage. For most small businesses, this would usually equate to 10,000 miles a year (but can be double that, depending on your requirements).
Beyond your contracted mileage, there’s a pence per mile charge for every mile over – called the excess charge.
However, Business Car Manager partner Fleet Alliance is guaranteeing that small fleet operators will no longer incur expensive charges by recalculating contracts on an individual basis – as long as companies follow its advice.
This is how it works. When a driver’s vehicle is approaching its contracted miles, Fleet Alliance suggests a number of options to avoid incurring excess mileage charges. These include swapping high mileage drivers who are about to exceed their mileage quota into different cars being driven by colleagues.
If this is contrary to your company’s business car policy, then Fleet Alliance suggests recalculating and renegotiating the contract before the mileage limit is reached, and takes this approach with the contract for every driver on your fleet.
Fleet Alliance says that this is more cost effective than incurring excess mileage charges.
“Our guarantee is contingent on the business car manager following our advice,” said Fleet Alliance managing director Martin Brown.
“But other than that we are prepared to back our position that our clients will not face any excess mileage charges at the end of their vehicle contracts.
“Knowing this means our clients can budget or forecast more accurately without the threat of excessive and expensive end of contract charges,” Mr Brown continued.
“Many of our larger competitors rely on benchmarking of vehicle mileages as they are not prepared to go the extra mile and offer individual negotiations. But we do not believe this is in our clients’ best interests and is typically more expensive,” Mr Brown added.
Ditch end of contract payment fees
