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Business Advice

What Happens If You Exceed the Mileage Allowance on a Rent2Buy Van?

Rent2Buy van agreements include a monthly mileage allowance that explains how far the vehicle may be driven during the rental period.

The current Rent2Buy allowance is:

3,000 miles per month

Where the van travels more than 3,000 miles in a month, the additional mileage is charged at:

20p per excess mile

The excess-mileage charge is calculated for that month and billed during the following month.

Any excess-mileage charges paid during the contract term are then deducted from the final payment amount due when the agreement reaches the completion stage.

What Is the Rent2Buy Mileage Allowance?

The mileage allowance is the maximum number of miles the van may travel during each monthly period under the Rent2Buy agreement.

The current allowance is:

3,000 miles per month

This is equivalent to 36,000 miles over 12 months where the van travels exactly 3,000 miles every month.

However, the allowance is assessed monthly. A customer who travels fewer than 3,000 miles in one month should not assume that the unused mileage can automatically be carried forward to another month unless the agreement confirms this.

Always read the mileage terms in your individual agreement.

Why Does Rent2Buy Include a Mileage Allowance?

Mileage affects:

• Vehicle wear

• Servicing requirements

• Tyre and brake wear

• Mechanical condition

• Future vehicle value

• The likelihood of repairs

• The amount of use placed on the van

The allowance helps define the expected level of use during the rental term.

Because the vehicle remains owned by Rent2Buy Vans during the agreement, the customer must use and maintain it in line with the contract conditions.

How Much Is the Excess-Mileage Charge?

Mileage above the monthly 3,000-mile allowance is charged at:

20p per additional mile

The charge is calculated using the number of miles above 3,000 for that month.

Example

If the van travels 3,250 miles in one month:

• Monthly allowance: 3,000 miles

• Excess mileage: 250 miles

• Rate: 20p per mile

• Charge: 250 × £0.20

• Amount billed: £50

The £50 charge would normally be billed during the following month.

When Is the Excess-Mileage Charge Billed?

The excess mileage is calculated monthly.

Any charge for mileage above 3,000 miles is billed during the following month.

For example:

• Mileage recorded in January: 3,400 miles

• Excess mileage: 400 miles

• Excess-mileage charge: £80

• Charge billed: During February

Customers must pay the invoice when it is issued, even though the amount will later be taken into account at the final-payment stage.

What Happens to Excess-Mileage Payments at the End?

Excess-mileage payments made during the agreement are not simply lost.

When the Rent2Buy agreement reaches the completion stage, the total excess-mileage charges paid during the contract term are deducted from the final payment amount due.

Example

Suppose the customer paid the following excess-mileage charges during the agreement:

• Month 6: £40

• Month 12: £60

• Month 18: £100

• Total paid: £200

At the final-payment stage, the £200 already paid would be deducted from the relevant final payment amount due.

The customer must still have paid the monthly excess-mileage invoices when issued.

The deduction is applied at completion rather than cancelling the monthly invoices.

Does This Mean Excess Mileage Is Free?

No.

The customer must still pay the excess-mileage charge during the agreement.

The charge affects monthly cash flow and must be paid when billed.

The amount paid is later credited against the final payment due at completion.

This means:

• Excess mileage still creates a monthly charge

• The charge must be paid when invoiced

• The total paid is recorded

• The amount is deducted from the final payment at completion

How Is the Mileage Recorded?

The van’s odometer and tracker information may be used as part of the mileage records.

Customers should also keep their own mileage records.

A simple monthly process is:

1. Record the odometer reading at collection.

2. Record the mileage at the same time every month.

3. Calculate how many miles were travelled during that monthly period.

4. Compare the result with the 3,000-mile allowance.

5. Estimate any charge at 20p per excess mile.

6. Contact Rent2Buy Vans where there is a concern or discrepancy.

Keeping dated dashboard photographs can provide a useful personal record.

Monthly Mileage Examples

Example 1: Within the allowance

Mileage travelled during the month:

2,700 miles

Because this is below 3,000 miles:

Excess-mileage charge: £0

Example 2: Slightly above the allowance

Mileage travelled:

3,100 miles

Calculation:

• Excess mileage: 100 miles

• 100 × £0.20 = £20

The £20 would be billed during the following month.

Example 3: High-mileage month

Mileage travelled:

4,000 miles

Calculation:

• Excess mileage: 1,000 miles

• 1,000 × £0.20 = £200

The £200 would be billed during the following month and later deducted from the final payment amount at completion.

Can Unused Mileage Be Carried Forward?

Do not assume that unused mileage from one month can be carried forward.

For example, travelling 2,000 miles in one month does not necessarily mean that 4,000 miles can be travelled the following month without a charge.

The current allowance is 3,000 miles per monthly period.

Check the written agreement or ask Rent2Buy Vans where clarification is needed.

Can the Mileage Allowance Be Increased?

Do not assume that the monthly allowance can be increased or changed after the agreement begins.

Any alteration would need to:

• Be permitted

• Be considered by Rent2Buy Vans

• Be formally agreed

• Be confirmed in writing

Unless a written variation has been agreed, the existing 3,000-mile monthly allowance continues to apply.

What If Business Mileage Increases?

Business circumstances can change.

Mileage may increase because of:

• A new contract

• Work further from home

• More customer visits

• Delivery work

• A wider service area

• Additional staff

• Seasonal demand

• More motorway journeys

Where mileage increases:

1. Calculate the current monthly average.

2. Compare it with the 3,000-mile allowance.

3. Estimate the likely excess-mileage charge.

4. Include the charge in the business budget.

5. Contact Rent2Buy Vans where necessary.

For example, expected mileage of 3,800 miles in a month would produce:

• Excess mileage: 800 miles

• Charge: 800 × £0.20

• Amount billed: £160

Does High Mileage Affect Servicing?

Yes.

Higher mileage means that servicing and maintenance intervals may be reached sooner.

Rent2Buy operates on a self-maintenance basis, so the customer is responsible for servicing and maintaining the van in line with the manufacturer’s schedule and agreement terms.

High-mileage use may increase wear to:

• Tyres

• Brakes

• Clutch

• Suspension

• Wiper blades

• Service components

• Other wear items

The monthly mileage allowance does not replace the obligation to maintain the vehicle properly.

Does Exceeding the Allowance Affect the Final Purchase?

Exceeding the monthly mileage allowance does not automatically prevent the customer from completing the agreement and purchasing the van.

However:

• Monthly excess-mileage invoices must be paid

• The agreement must be completed correctly

• All other required payments and conditions must be satisfied

• Any outstanding account matters must be resolved

At the final-payment stage, the excess-mileage charges already paid during the contract term are deducted from the final payment amount due.

Ownership does not transfer until the agreement has been completed and the relevant final payment requirements have been met.

What If the Agreement Ends Early?

Early termination or vehicle return is separate from normal completion.

The position may depend on:

• The agreement terms

• Notice requirements

• Outstanding rentals

• Mileage

• Vehicle condition

• Unpaid charges

• Other contractual obligations

Do not assume that returning the van removes any mileage or payment responsibilities.

Speak to Rent2Buy Vans before taking action to end the agreement early.

How Can You Avoid Mileage Surprises?

Before applying:

• Estimate weekly and monthly business mileage

• Include travel between jobs

• Include commuting where applicable

• Allow for seasonal increases

• Include permitted personal use

• Check whether regular months may exceed 3,000 miles

• Budget for 20p per excess mile

• Read the mileage terms

During the agreement:

• Record mileage every month

• Compare usage with 3,000 miles

• Estimate the next invoice

• Keep money aside for excess-mileage charges

• Maintain the van correctly

• Review future work commitments

• Contact the team where there are concerns

Frequently Asked Questions

How many miles can I drive each month?

The current Rent2Buy allowance is 3,000 miles per month.

How much is the excess-mileage charge?

Mileage above 3,000 miles in a month is charged at 20p per additional mile.

When is the charge billed?

The charge is calculated for the month in which the excess mileage occurred and billed during the following month.

How much would 500 excess miles cost?

500 × £0.20 = £100

Do I lose the excess-mileage payments?

No. Any excess-mileage charges paid during the contract term are deducted from the final payment amount due at completion.

Do I still have to pay the monthly invoice?

Yes. The invoice must be paid when issued. The amount is later credited against the final payment.

Can unused mileage be carried forward?

Do not assume that unused mileage carries forward. The allowance is 3,000 miles per monthly period unless the written agreement says otherwise.

Can I increase the mileage limit?

Any change would need to be formally agreed and confirmed in writing. It cannot be assumed.

How is mileage monitored?

Odometer and tracker records may be used. Customers should also keep their own monthly records.

Does excess mileage stop me buying the van?

Not automatically. The agreement and payment conditions must still be completed, and paid excess-mileage charges are deducted from the final payment amount.