Contract Hire Amend (Car Leasing Amend)
However, let's say you agreed to an annual mileage of 10,000 miles per annum over a three year contract. You find after one year that you have in fact travelled 15,000 miles and therefore you are over-performing the annual mileage allowance by 5,000 miles a year.
If you think you are likely to continue at 15,000 miles per annum it may be worth considering a contract hire amend (car leasing amend). If you contact your vehicle leasing company and explain that you are running over the contract, they will re-calculate your contract based on 45,000 total miles and offer you a revised rental for the remainder of the contract. This will stop you receiving an excess mileage bill at the end of the contract for 15,000 miles x the excess mileage pence per mile charge.
However when considering your contract hire amend, just remember that you will have been paying your original contract hire rental based on 10,000 miles per annum, for the early part of your contract. When the leasing company performs their calculation for the contract hire amend, they will also base their revised rental from the point at which you want to amend your contract.
So remember, if you are travelling at 15,000 miles per annum, you actually want your contract hire amend (car leasing amend) to revise your contract to 45,000 miles in total over three years (3 x 15,000)
If the point of the contract hire amend is at 18 months the calculation would be as follows;
18 months at 10,000 annual mileage allowance = 15,000 miles contracted.
To recalculate the contract hire amend, you need to write the contract for the last 18 months to catch up and that works out at 30,000 miles, so that the total is 45,000 miles after three years..
The leasing company will therefore send you a revised quote for an 18 month contract hire amend at 19,999 miles annum, with a higher revised rental as well.
So in summary your total contractual miles would be based on two periods
First 18 months at 10,000 miles a year = 15,000
Last 18 months at 19,999 miles a year = 29,998
Total miles on the above is 44,998 miles
You can then work out whether it is better to pay the increased contract rental for the last 18 months, or wait until the end of the contract hire period and pay 15,000 excess miles, multiplied by the pence per mile charge.
If you are under-performing your contract hire agreement you can also ask for a contract hire amend that reduces your rental, if you are travelling at 7,500 miles a year for example. The same principle applies i.e. you would ask for a contract hire amend that returned the car with 22,500 total miles (3 x 7,500) after three years.
The calculation for reducing your contract hire agreement would be as follows.
First 18,000 miles at 10,000 = 15,000
Last 18,000 miles at 4,999 per annum = 7,498 contracted miles
Total contracted miles on the above is 22,498 miles
It looks complicated but it's not, and contract hire annual mileages can usually be amended at any time, provided there is an acceptable period left to run on the contract. It is usually best to think about a contract hire amend after one year, as you will then have an idea of what your true annual mileage is likely to be.
To give you a flavour of some contract hire rentals we have shown Fiat contract hire and Honda contract hire prices below however every make and model can be quoted off the main quote engines.
From £136.59 ex. VAT
From £136.90 ex. VAT
From £147.54 ex. VAT
From £149.00 ex. VAT
From £154.67 ex. VAT
From £163.34 ex. VAT
From £164.00 ex. VAT
From £164.18 ex. VAT
From £169.63 ex. VAT
From £176.00 ex. VAT
From £176.90 ex. VAT
From £178.28 ex. VAT
From £179.26 ex. VAT
From £180.23 ex. VAT
From £197.90 ex. VAT
From £215.00 ex. VAT
From £226.00 ex. VAT
From £227.12 ex. VAT
From £236.90 ex. VAT
From £238.00 ex. VAT
From £250.27 ex. VAT
From £253.87 ex. VAT
From £254.54 ex. VAT
From £273.00 ex. VAT
From £280.98 ex. VAT
From £284.90 ex. VAT
From £287.90 ex. VAT
From £293.91 ex. VAT
From £296.67 ex. VAT
From £301.74 ex. VAT
From £306.90 ex. VAT
From £312.05 ex. VAT
From £320.33 ex. VAT
From £321.97 ex. VAT
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