AVOIDING PENALTY CHARGES FOR EXCESS WEAR AND TEAR

Lease Return Preparation – A 5-Step Guide
by Clean Image

Start preparations early - Order a copy of the BVRLA (British Vehicle Rental and Leasing Association) Fair Wear and Tear Guide at least 8 weeks before the end of your lease. The aim of the guide is ‘to provide an industry-wide, accepted standard as to what constitutes fair wear and tear for contract hired and leased vehicles on their return’.

Every year the car leasing market faces a £120m bill for end of contract penalty charges. A large chunk of this is for excessive wear and tear. According to the latest research for FN50, 37% of returned cars incur a fair wear and tear recharge averaging £231. Lease-end penalty charges are most commonly for

• stains, rips, tears and burns on seats
• scratched or scuffed paintwork
• chips and dents on the bodywork
• damage to wheels and trims.

See illustrations below

Seats 1 - Rip	Paintwork 1 - Scuff
Paintwork 2 - Rust	Bodywork 1 - Dent

1. Start preparations early - Order a copy of the BVRLA (British Vehicle Rental and Leasing Association) Fair Wear and Tear Guide at least 8 weeks before the end of your lease. The aim of the guide is ‘to provide an industry-wide, accepted standard as to what constitutes fair wear and tear for contract hired and leased vehicles on their return’.

2. Clean and dry your car thoroughly - You need to give your car a good clean first before conducting the assessment so that you can see any damage. You will incur penalty charges for returning a car with excessive dirt, stains or odours, so it will require cleaning anyway.
   • Consider having your car valeted professionally, especially if you haven’t invested much time in cleaning it over the lease period.
   • When assessing your car make sure the weather is good. The car should be dry and assessed in good daylight. If the car has raindrops on it, finding paint imperfections and dents will be nearly impossible.
   • Be objective in your evaluation and take the opportunity to put right what could cost you more at lease-return. A good checklist is essential for accurate evaluation. A printable checklist can be found at Clean Image.
3. Rectify damage – Any damage on your car that exceeds fair wear and tear as outlined in the BVRLA guide should be rectified. Do not be tempted to try your luck with the inspector. There are simple and cost-effective solutions available for most car damages.
4. Consider using a lease return specialist – There are companies that offer specialist lease-end services such as inspections, valeting and SMART repair. By using these companies you will benefit from
   • comprehensive cleaning services including odour removal
   • expert wear and tear assessment to the same standards as those used by lease-end inspectors
   • smart repair techniques that work out cheaper than replacement parts and body shop repairs
5. Keep your inspection report – After the official lease-end inspection keep a copy of the inspection report. Much like a no claims bonus in car insurance, a favourable lease-end inspection report can reduce the cost of subsequent lease contracts. A large proportion of the cost of leasing is based on the uncertainty of the condition of the car at lease return. Some of this uncertainty can be removed by providing a favourable inspection report as proof of good car care history.

Ultimately, the only way to avoid penalty charges at lease-end is to take better care of your car from the start. Always maintain your lease car along the guidelines provided in the owner’s manual from the manufacturer.

by Clean Image

Our advisors are always on hand to help you make informed decisions about any aspect of car leasing.
Call us today on 0208 596 9467.