Fleet News

Fleet Alliance offers excess mileage charge guarantee

Fleet Alliance is guaranteeing that fleet operators will no longer incur expensive charges by recalculating contracts on an individual basis for excess mileage. Fleet Alliance is making its guarantee conditional on the fleet operator following its advice in several crucial areas.

Standard practice in the contract hire and leasing market is for leasing suppliers to negotiate blanket benchmark mileages across the entire fleet of vehicles, with three years/60,000 miles or four year/80,000 miles being typical benchmarks.

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 fleet 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 its fleet.

Fleet Alliance managing director, Martin Brown, said: “Our guarantee is contingent on the fleet operator following our advice 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.
“This new initiative removes the need for cumbersome pooled mileage schemes, as mileages are calculated in real time, and is a far more effective way of tracking and monitoring mileages.
“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,” he said.
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  • Gilberto - 27/07/2010 10:35

    Nothing new here !? Good Contract Hire and Fleet Mgt companies would always give their clients proactive advice in terms of excess mileage implications and how to avoid them.

  • amd - 27/07/2010 12:22

    I agree with Gilberto here, this is just good fleet management surely?

  • gychris - 27/07/2010 13:07

    Cant really see the point of this article? We have been aggregating mileages and helping customers avoid even the most unavoidable, for years as I suspect most "proper" contract hire companies have. Our aggregation however isnt over a week, or a month, or even a year, we do whats best for the customer and it works fine for all concerned.

  • - 27/07/2010 13:13

    Just wanted to point out that the article is online because Fleet Alliance guarantees no excess mileage charges for fleets that follow its advice. There is no doubt that all good contract hire companies will offer such advice, but how many put their money where their mouth is and do not charge for excess miles?

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