Are you managing a business vehicle fleet and getting stung on excess mileage charges? If yes, we may have some good news for you!
Mileage Pooling is a service that assists in minimising excess mileage charges. It enables all excess mileage charges for returned vehicles to be aggregated across the calendar year, with under‐mileage vehicles used to offset the excess mileage charges.
How does it work?
We will set up a Mileage Pooling Account for you and each time a vehicle is returned a calculation is made based on the excess mileage charge (as per the vehicle contract schedule), and the actual mileage at the termination of the contract.
- If the actual mileage exceeds the contract mileage the excess mileage is multiplied by the excess mileage charge and is debited to the Mileage Pooling account
- If the actual mileage is less than the contract mileage the difference is multiplied by a sum equal to the excess mileage charge and is credited to the Mileage Pooling Account
The net amount for the previous calendar year is totalled annually on 1st January, with any credit balances used to offset debit balances. If the net effect is a debit balance, then an invoice will be issued for this net excess mileage charge. This charge is broken down into two areas:
- Finance which covers the additional depreciation
- Services which covers additional service and maintenance costs
VAT registered companies 50% of the finance charge can be recovered with 100% of the services charge allowable.
Minimum fleet size requirements
Please note, Mileage Pooling is only applicable where a minimum of 10 LeasePlan vehicles are on lease at any one time. If the fleet falls under this minimum requirement, the service is no longer available.