LEASING cars rather than buying them outright often makes the most sense for companies. Not only is it more cost effective over the course of the contract, you may also qualify for various tax exemptions depending on where you’re based. Leasing is not without it’s own set of issues though. One of the major issues individuals find themselves in is not properly understanding the lender’s “fair wear” conditions.
As you can imagine, such vague terminology meant that different companies could disagree on what constituted unfair damage. This is why the British Vehicle Renting and Leasing Association (BVRLA) created a standard guideline for companies to follow. Here’s what you need to know.
Windscreen and Side Mirrors
While small scratches are tolerated, any holes, chips, or cracks in the glass that feature in the driver’s direct line of sight are unacceptable. Similarly, while small marks to the wing mirrors are also passable, you should expect to pay for repairs on any missing paintwork. Cracked, or missing, mirrors will also result in a costly bill.
Bodywork
As the car is being driven on a regular basis for several years, scratches (up to 25mm in length), dents (up to 10mm), and chips are expected, though anything that causes the car to be repainted will be penalised. The damage that’s caused will be taken into account against the age of the vehicle, but anything that exposes the bare metal or any signs of rust will not be tolerated. If your company uses the car for advertising, you are allowed to fit a decal to the vehicle. However, this must removed beforehand and show no signs of residue.
Wheels and Tyres
When returned, the tyres of the car must still meet the minimum legal requirements. This means they must not have a cut or tear that exceeds 25mm or 10% of the sectional width of the tyre, or one that is deep enough to reach the ply or cord through. There should be no damage to the side walls or any sign of uneven tread wear either.
Interior
The interior should be clean of any of any your belongings (whether wanted or unwanted). Light wear is expected, though there should be no major discoloration to the upholstery, or any burns, tears, or other staining. Any damage caused by fitting third-party equipment, such as child seats or mobile phone holders, will also be taken into account.
While lenders like Select Contracts try to make the process as simple as possible, understanding all of the subtleties can be difficult. While you’re expected to be comfortable with the car, you should also remember that it isn’t technically yours.
