Fair Wear & Tear Guide

If you have a car or van on a Contract Hire agreement you should make sure you read this!

In the excitement of taking delivery of your new car or van many of us fail to read the all the small print on our contracts whether it's a business or personal contract hire agreement. Once the vehicle is returned and a large invoice drops on the mat we tend to fully read up on our commitments.

What is Fair Wear and Tear?

This is the result of a vehicle being used normally and consequently suffers some deterioration from its original condition. This is not the same as Unfair Wear and Tear which can be the result of inappropriate usage, accident damage or general neglect.

Unfair Wear and Tear - End of Contract Recharges.

Contract Hire companies as part of setting the monthly rental will predict the future value of the car or van they are contract hiring to you, as part of this process they take into account the contract length and mileage, they also make an assumption of what the condition of the vehicle should be taking into account these elements.

This is an area of potential disagreement between customers and the Contract Hire and Leasing providers. However if you use this guide it may help prevent unnecessary bills being sent to you. Don't forget most Contract Hire and Leasing companies will not only charge you for the rectification work but in many circumstances levy a handling or admin fee as well.

So What Can I do?

Most Contract Hire companies will be able to supply you with a guide to what they consider to be Fair Wear and Tear and most will adhere to the guide as laid down by the BVRLA (British Vehicle Rental and Leasing Association).

Ideally you should begin the process of checking your car or van in plenty of time prior to it being collected at the end of contract, I would allow at least 10 to 12 weeks. This is even more important if the vehicle is not being used by you, for example a company car.

Useful Tips to help you check over your vehicle.

You may want to ask a colleague to help you with the check over.

Always make sure the vehicle is clean and dry, it's no point in trying to hide faults from the Leasing company as they will get the vehicle cleaned then bill you for the repairs.

Check the vehicle over in good natural light, again checking your car or van over in poor light will result in potential repair bills. Make sure the interior has been vacuumed and is acceptably clean. A van which has concrete all over the back will guarantee you a large bill. Walk around the vehicle and check all the panels including the roof, bonnet, boot/tailgate for scratches and dents. You may notice the light reflects differently on panels where there are dents.

Items to check

Has all the routine servicing been carried out in compliance with the manufacturers recommended intervals or those stipulated by the leasing company?

Are all the relevant handbooks, service books and audio guides in the vehicle?

Make sure all keys are available this must include any fuel filler caps and locking wheel nuts.

Does the remote locking system work if not the battery in the key fob should be replaced?

Check all the glass, lights, mirrors and lenses for damage, chips, cracks etc. In the event the windscreen has stone chips or cracks get this repaired prior to the vehicle collection.

For more information check out Windscreen repair page.

This could save you a significant amount of money as many insurance companies cover repairs.

As a guide light scratches are acceptable so long as they are not in the driver's direct line of vision. Any chips, holes are not acceptable.

Door mirrors must not be broken, missing or scratched.

Check the tyres including the spare for any damage or wear on the tread. If the tyres are excessive worn they should be replaced, the current legal tread depth limit is 1.6m. For more information see Car and Van tyres page

Check the wheels for scratches, dents or scuffs, especially important if the wheels are alloy as these will need to repaired if scratching is deemed to be excessive. Damaged wheel trims should be replaced as should damaged wheels. The amount of scratches or scuffs which is acceptable is generally dependant on age and mileage of the vehicle.

Make sure the jack and any other tools are in the vehicle.

Body damage is a contentious issue and it is well worth having any damage repaired by a reputable repair centre prior to the vehicle return.

Accident damage should be repaired immediately in all circumstances and many contract hire companies may require a minimum of two years guarantee on the workmanship. All painted areas will be fully inspected by the Contract Hire Company and as part of the assessment they will look for poor repair work, missing paint and rust or corrosion. Most Leasing companies will accept small areas of stone chips and small areas of door edge chips so long as there is no corrosion showing. Small dents will normally be tolerated so long as they are under 10mm and the paint has not been broken.

I would strongly suggest you check what your Leasing Company finds acceptable and what they don't as there are different interpretations across the board.

If the vehicle is a Convertible the roof should not have any rips or tears and be in full working order. The rear screen should not be cracked or excessively creased.

Interior of the vehicle should be clean with no burns, tears, staining or holes in the seats or soft trim. If you have a mobile phone cradle fitted check with your contract hire provider on what is acceptable, i.e. leave the kit in the car or have any holes repaired. Also make sure any load liner covers are in the vehicle and that they are not damaged.

Collection.

It is important the vehicle is available for collection at the time and date agreed with the Leasing Company, failure to be ready could result in a failed collection fee.

Make sure the vehicle is clean and preferably dry to enable the collection agent to carry out a full and accurate appraisal.

I would suggest you or your fleet manager is there during the collection process. In most circumstances the collection company will fully evaluate the vehicle and complete an appraisal sheet. They will record the date, time and the mileage of the vehicle before carefully looking over the car.

In some instances they will take photographic evidence during this process. You may wish to do the same in the event you have some slight damage and to help prevent any misunderstandings once the vehicle has been collected.

Make sure you both agree on the details on the vehicle condition report before the vehicle leaves you. In the event you receive an invoice that you feel is unjustified or unfair in first instance contact your leasing company, it is useful to have a copy of the collection appraisal sheet with you to refer to. Remember it is always best to be polite and try to work through the issue with the leasing company, however if there is no satisfactory outcome you can consider contacting the BVRLA to seek their input, that assumes your Leasing provider is a member.

To Summarise.

Check the vehicle well in advance.

Get any damage repaired through your insurance company or through a body shop of your choosing.

Make sure the vehicle is clean inside and out where ever possible.

Be realistic in your assessment of the vehicle, the Contract Hire Company will take the view of the condition of the vehicle based on age and mileage.

This document is a guide only and you should check with your own Leasing or Contract Hire Company on their interpretation of what is deemed as Non Fair Wear and Tear.