Leasing Wear and Tear Guide

This guide provides an overview of the fair wear and tear procedure for leased vehicles. It includes an explanation of the guidelines, along with instances of common issues that may lead to customers incurring penalty charges at the end of their lease term.

Additionally, this guide offers guidance on maintaining your leased vehicle and suggests preventive measures you can adopt to ensure your lease vehicle remains in satisfactory condition, thereby minimizing de-hire charges.

Please note that the information provided on this page is intended as a guide only.

What is fair wear and tear?

Fair wear and tear refers to the deterioration that naturally happens to a car or van through regular usage over the lease duration. It should be distinguished from damage resulting from accidents, negligence, or mistreatment.

Upon returning your vehicle to the financing provider at the end of your agreement, an inspection will be conducted to identify any damage beyond the scope of 'fair wear and tear.' Incurred costs for excess damage, leading to lease-end penalty charges, will be the responsibility of the lessee.

Uniform fair wear and tear regulations apply to both business and personal customers. However, there are distinct guides for various vehicle types:

1. Cars
2. LCVs (Light Commercial Vehicles, including vans and minibuses)
3. HGVs (Heavy Goods Vehicles – those exceeding 3.5 tonnes GVW)

The British Vehicle Rental and Leasing Association (BVRLA), the trade body for the leasing industry, prints guidelines regarding the definition of fair wear and tear. These impartial guidelines are designed to guarantee transparent, easily comprehensible, and equitable rules for all parties involved.

How do I get a copy of the fair wear and tear guidelines?

While the BVRLA offers guidelines, each finance provider establishes its own fair wear and tear rules, generally aligned with the provided guidelines. It is crucial to adhere to the guidelines set by your specific finance provider to prevent any unforeseen costs upon concluding your lease agreement. If you require a copy, you can contact your finance company directly.

What can you find in the guidelines?

Prior to returning your vehicle, it is essential to refer to the official wear and tear guidelines provided by your finance provider. These guidelines outline the acceptable standards for various aspects of the vehicle and offer specific instructions for the following areas:

1. General appearance and road safety
2. Documentation and keys
3. Paintwork, body, bumpers, and trim
4. Windows, glass, door mirrors, and lamps
5. Tyres and wheels
6. Mechanical condition
7. Vehicle interior
8. Equipment and controls

The guidelines also cover:

1. Reasoning behind the existence of end-of-lease charges
2. Instructions on inspecting your vehicle for damage before handing it over
3. Visual aids through photographs depicting acceptable and unacceptable damage on vehicles returned at the end of a lease
4. A glossary of terms elucidating various types of damage, such as 'abrasion,' 'dent,' and 'chip.'

Preparing for the end of your lease term

Initiate preparations in advance As the end of the contract approaches, vehicles should be in satisfactory condition considering their age and mileage. The BVRLA recommends conducting a thorough inspection for any damage to your vehicle approximately 10 to 12 weeks before the scheduled return date. This timeframe allows ample opportunity to align the vehicle with the condition guidelines and address any required repairs promptly.

• Opt for good lighting - Since the finance provider will examine your vehicle in natural daylight, conduct your inspection under similar conditions to avoid overlooking faults, dents, or scratches that might otherwise go unnoticed.
• Inspect your vehicle in dry conditions - A wet car can make it challenging to identify scratches and dents. If the vehicle has been recently washed or exposed to rain, ensure it is thoroughly dried before the inspection.
• Ensure overall cleanliness - Both the interior and exterior of the vehicle should be clean. Water marks and dirt can obscure bodywork damage, and the interior upholstery must be free of stains.
• Remove personalized number plates

What kind of damage is acceptable on a leased vehicle?

Typical acceptable damage includes:

• Small light scratches of up to 25mm (except where primer or bare metal is showing)
• Dents of 15mm or less in diameter provided there are no more than two per panel and the paint surface is not broken.
• Scratches to the windscreen that do not obstruct the driver's line of vision.
• Light tyre wear provided tyres meet UK legal requirements.
• Light staining to the driver seat area but no rips, holes, or tears

What kind of damage is unacceptable on a leased vehicle?

Some of the most common:

1. Damage to wheels and trims
2. Chips or dents on the bodywork
3. Scuffs, scratches, and scrapes to the paintwork over 25mm
4. Rips, burns, or holes in the vehicle’s seats.
5. Unrepaired impact damage
6. Adhesive residue
7. Windscreen chips

Importance of regular service and maintenance

The most efficient approach to prevent penalty charges is to consistently uphold the vehicle's maintenance and appearance throughout the lease period. Regular maintenance and servicing should be conducted by an accredited servicing outlet, with the vehicle service record stamped at each service.

Frequent cleaning of both the interior and exterior is essential for maintaining the vehicle's visual appeal. Polishing the vehicle exterior approximately four times annually can mitigate the impact of stone-chip damage, minimize the effects of air-borne contaminants (such as bird droppings), eliminate traffic grime, and facilitate routine washing.

Additional expectations include:

1. Adhering to the vehicle manufacturer's guidelines for maintenance.
2. Sustaining the vehicle in good condition to uphold its performance, safety features, and emission standards.
3. Following the manufacturer's recommendations for fuel, fuel blends, additives like AdBlue, lubricants, and battery recharging (for electric or hybrid vehicles).
4. Promptly reporting any suspected manufacturer's faults identified on any part of the vehicle, its bodywork, or trim.