Bespoke contract clauses usually only given to large fleets are now being offered to smaller fleets.

Lombard Vehicle Management recently allowed a 12-vehicle van fleet to have a pooled mileage clause written into its contract.

It was suggested that Power Tecnique take a pooled mileage option, which Lombard will now offer to fleets of ten vehicles or more.

In pooled mileage contracts each vehicle’s contract is set up with specific mileage parameters. At regular intervals all actual mileages are then pooled and compared to the contractual mileages.

Such contracts are relatively common among larger fleets, where it is more likely that there will be significant mileage variance between vehicles and where the economies of scale justify them.

“However, there is understandably increasing demand for them from smaller businesses, particularly as they seek the flexibility to help them manage the current economic conditions and reduce the incidence of unknown costs,” explained Nigel Kerr, Head of Contract Hire – Business & Commercial, Lombard.

“Rather than applying charges to each vehicle exceeding the agreed mileage limit and not taking into account those which are below their limits, under-mileage cancels out excess mileage. In addition customers do not pay a premium for a pooled mileage arrangement.”

There are some conditions, like a cap and collar which is applied for vehicles significantly above or below contractual mileages to manage Lombard’s risk.

“The key is for us to work closely with customers to help them manage their mileages and ensure that the vehicles remain within the pool parameters,” said Kerr.

“We will, for example, suggest that vehicles are swapped between high and low-mileage drivers, and facilitate mileage rescheduling mid-contract if necessary.”