Renegotiating lease mileage after first year?
Discussion
We took out a lease of a Volvo XC60 with 24,000 miles through a broker in March 2019 for two years. The contractual excess mileage charge is £0.09 (inc VAT).
We have already driven over 15,000 miles in it and so are currently around 6,000 miles over the pro rata average mileage at month 9. Using one car more than originally anticipated has certainly been helping us avoid getting a second car yet.
So is there any recommended way to renegotiate the annual mileage allowance of a lease, perhaps for a slightly higher monthly payment, mid-way through the contract?
We have already driven over 15,000 miles in it and so are currently around 6,000 miles over the pro rata average mileage at month 9. Using one car more than originally anticipated has certainly been helping us avoid getting a second car yet.
So is there any recommended way to renegotiate the annual mileage allowance of a lease, perhaps for a slightly higher monthly payment, mid-way through the contract?
Phone the lease company. Get a quote to amend the mileage limit. See if the quote works out as being more or less expensive than paying the excess mileage. Decide whether to accept the quote or not based on that.
That’s basically it, they will deal with these queries all the time, totally normal.
That’s basically it, they will deal with these queries all the time, totally normal.
I'm not sure there's any 'perhaps' about a higher monthly payment if you ask them...I reckon its a certainty!! If my mental arithmetic is correct you're projecting to do 40,000 miles in two years on a lease that's for 24,000 with a 9p/mile excess. So if you do nothing you're in for just over £1,400. And given you've got 15 months left, If they quote you less than around £100 a month increase then your better off...if they don/t, stick with the excess mileage
I agree £0.09 pm excess is a good rate on that car, I could guarantee any deal you would get would be any better than paying the excess mileage charge at the end.
With all that said no harm in asking!
edit - just doing a bit of a calc if you were down to 14months remaining by the time any deal was done then if you end up doing 40000 miles in total over the term then you would have £1400 excess as previous poster mentioned. Therefore you would need the company to come back with an additional cost of £100 per month or less to make it worthwhile. If they hit you with £50 to £80 then you are making a saving just watch they don't put the excess pm up as they know you will likely go over!
With all that said no harm in asking!
edit - just doing a bit of a calc if you were down to 14months remaining by the time any deal was done then if you end up doing 40000 miles in total over the term then you would have £1400 excess as previous poster mentioned. Therefore you would need the company to come back with an additional cost of £100 per month or less to make it worthwhile. If they hit you with £50 to £80 then you are making a saving just watch they don't put the excess pm up as they know you will likely go over!
Edited by strath44 on Thursday 16th January 10:40
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