Vehicle finance discretionary commission complaints
The Financial Conduct Authority says some customers may have been charged too much on their vehicle finance before 2021.
Get support with commission complaintsInformation about excess mileage
Some of our agreements include terms about how far you can drive each year, and charges if you drive further than we agreed.
Frequently Asked Questions
Read more about what excess mileage means in relation to your vehicle finance agreement below.
What do we mean by ‘excess mileage’?
When you sign your agreement with us, it includes an agreed total mileage. If you drive more than that amount, you’ll have to pay 10p plus Value Added Tax (VAT) for every extra mile travelled. We call this excess mileage, and you pay it at the end of your agreement if you give the vehicle back to us.
How does it work?
Take Joe. Joe has a vehicle finance agreement with us for his car which includes an agreed total mileage of 10,000 miles.
He ends up driving 10,500 miles, which is 500 miles further than what we agreed. At the end of his agreement, he chooses to give the car back. Because he drove further than we agreed, he has to pay an excess mileage charge.
Total agreed mileage: 10,000
Excess mileage: 500
500 excess miles x 10p (excluding VAT) = £50.00 (plus VAT)
I’m worried about my mileage. What should I do?
You should make a note of the agreed total mileage in your finance agreement with us and check your mileage every year to compare.
If you’re worried about your mileage, or you’ve driven more than we agreed, you should call us on 0333 321 6062, Monday to Friday between 9am and 7pm.
Why do I have to pay an excess mileage charge?
When you took out your vehicle finance agreement, you told us the expected annual and total mileage you would drive in the vehicle over the term of agreement. We used that information to make an estimate of the vehicle’s future value.
Additional miles could reduce the value of the vehicle at the end of the agreement, compared to our original estimate. The excess mileage charge means that we can cover the reduction in the vehicle’s value caused by driving additional miles.
Do I have to pay the excess mileage charge if I buy the car?
At the end of our finance agreement, you can choose to buy the car and keep it. In that case, you wouldn’t have to pay an excess mileage charge.
I handed my vehicle back before the end of our agreement. What does that mean for my excess mileage?
If you give the vehicle back midway through the agreement and you’ve driven further than your agreed annual mileage, we’ll work out the excess mileage charge in proportion (pro-rata) to your agreed agreement term.
Take Layla. Layla has a 4 year agreement with us, and that agreement includes a total annual mileage of 10,000 miles a year or 40,000 over the term of the agreement.
In the second year, by month six, Layla realises she can’t keep the vehicle. She’s driven 26,000 miles.
Agreed mileage pro-rated = 2.5 years at 10,000 miles per year = 25,000 mile allowance, so, Layla has exceeded her allowance by 1,000 miles.
1,000 excess miles x 10p (excluding VAT) = £100.00 (plus VAT)