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Don’t get caught out by end of lease charges

1078_Jim_McNally_Alphabet_ACFO Conference and AGM 2013 Jim McNally and Caroline Sandall ACFO director
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16 June 2013

Mr McNally also urged business car managers to remind drivers of leased vehicles to ensure cars and vans were serviced in accordance with manufacturer schedules saying it was ‘key to a vehicle retaining its value’.

Finally, he reminded company car operators that the non-return of keys – both the master key and the ‘slave’ key – was a further ‘significant’ end-of-contract additional charge for fleets.

 How can you avoid de-hire charges? To start with you could read this – and save yourself money: Beware those end-of-lease liabilities

 

What the BVRLA says

Most leasing companies have a clause in a contract hire lease concerning fair wear and tear.

If you return the vehicle without rectifying any excess wear and tear damages, the leasing company will recharge for the repair as this is in breach of contract.

Damage charges are compensatory – therefore outside the scope of VAT.

The BVRLA regulates the leasing industry through a code of conduct.

 

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Matt Morton

Matt Morton

Matt Morton is an automotive content writer for Business Car Manager

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