➤ Some damage is acceptable when handing back a lease vehicle
➤ This is known as fair wear and tear
➤ More serious damage means end-of-lease charges
Let's say you're due to hand back a lease on a BMW 4 series.
The front end looks like it's seen better days. 2 of the alloys are kerbed, the front and rear bumpers have parking scuffs. In short, you're secretly dreading a monster bill.
Fearing the worst, collection day finally comes and a nice chap from the leasing company comes along to inspect the car.
To your surprise, you get a text an hour later with a condition report saying that the car was passed as 'acceptable' in every area.
Jackpot — you've dodged a bullet. The inspector must have been blind.
Or so you thought . . .
Fair Wear and Tear
Thing is, there's certain kinds of damage that are acceptable on your lease vehicle when you hand it back, without you having to cough up end-of-contract charges. This is what's called fair wear and tear, as opposed to . . . 'unfair' wear and tear (more on that in a bit).
It's unrealistic for car leasing companies to expect you to return the vehicle in the exact same condition as when you first got it, especially when the average lease term tends to be 2 to 3 years.
Whereas if you tried to trade in or sell that BMW 4 Series privately, there's every chance a potential buyer would go off their nut at all the minor imperfections. Another win for car leasing!
What Is Acceptable Wear & Tear For Lease Cars?
So who gets to decide what's 'acceptable' damage?
The BVRLA (British Vehicle Rental and Leasing Association), that's who.
They've set out extensive fair wear and tear guidelines for the kind of damage/wear and tear you can expect to get away with. The following is just a sample, but it should give you an idea . . .
Small Chips: including along the door edge
Dents: 2 dents per panel up to 10mm so long as the paint isn’t broken
Interior Wear: minor wear on upholstery e.g. small stains or slight fading, as long as not too extensive
Glass Damage: small chips or cracks in the windshield which don’t obstruct the driver’s line of sight
Scratches: scratches up to 25mm, provided they don't expose the bare metal
Alloys: scuffs totalling up to 50mm on each alloy wheel
There's a Catch . . .
Of course, nothing's ever that simple, is it?
Whilst the BVRLA's guidelines do aim to provide an industry-wide standard, the truth is that different car leasing providers are going to have slightly different definitions of what constitutes fair wear and tear.
Vehicle’s Age and Mileage Affects What is Considered Fair Wear and Tear
The age and mileage of a vehicle can also come into it as well. A car leasing company is going to expect less wear and tear on your vehicle if your contract only permits you to do, for example, 8,000 miles over the course of a 12-month contract. On the other hand, they'll likely be more lenient if you're on a 15,000 miles per year, 3-year contract.
The type of vehicle can also be important. A few marks in the loading bed of a pickup truck may be looked upon more favourably than a few marks in the boot of a luxury sports car.
If your leasing company doesn't make clear what standards they expect you to meet in your lease contract or lease agreement, ASK them. Plus, that way you have proof in case they go back on their word later on.
How to Get a Copy of the Fair Wear and Tear Guidelines
So yes, different car leasing companies may have slightly different interpretations of what defines fair wear and tear, but the BVRLA's fair wear and tear guide is still a decent reference point to go by. Just don't treat it like the be-all and end-all.
You can access the guidelines online:
BVRLA Fair Wear and Tear Guidelines (Cars)
BVRLA Fair Wear and Tear Guidelines (Vans)
What Are Some Examples of Unacceptable Wear and Tear?
Again, just a sample, but it should give you a rough idea . . .
Documentation and keys
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Missing some or all the relevant documentation (e.g. vehicle handbook)
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Missing MOT certificate
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Missing spare keys
Windscreen, windows and glass
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Vision-obscuring holes on the windscreen
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Missing, cracked or damaged door mirrors
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Malfunctioning heated seats and/or heated door mirrors
Wheels, tyres and trims
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Tyre or tyres (including the spare) with less than 1.6mm of legal tread
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Holes and dents on alloy wheels and the main body of the wheel
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Missing wheel caps or locking wheel nut(s)
Mechanical condition
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Dashboard warning lights showing
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Engine damage due to driving with insufficient coolant or oil
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Any significant impact damage to the vehicle’s underside
Vehicle interior
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Burnt or torn upholstery/trim
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Missing accessories e.g. parcel shelves, load covers, boot liners, restraining straps
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Rubbish strewn on floor
Can I Contest My Inspection if I Think the Decisions are Wrong?
Yep, but there's a specific process to follow.
You'll need to contact an independent engineer (whom both you and the leasing company agree is neutral) and pay for an inspection. They will make a judgement on whether the damage on your lease vehicle falls within the fair wear and tear guidelines set by the BVRLA.
If they rule in your favour, the inspection cost will be refunded to you and you won’t pay for the incorrectly assessed damage. If not, then you'll cover both costs.
Either way, the independent engineer's decision will be final and you won't be able to pursue the matter further.
Who Pays for Repairs On a Leased Vehicle?
In case you haven't cottoned on yet, it's you, the leaseholder.
Sort of like buying Pringles at the airport, end-of-contract fees are usually more expensive than having the damage repaired beforehand from a local mechanic.
Moral of the story . . . get it fixed!
How to Prepare for Returning Your Vehicle
Check the Car in Good Lighting
That pimple on your left chin becomes rather hard to spot when you look at yourself in the mirror from a certain angle or with the lights dimmed.
It's the same with cars. Inspecting it during the evening or in shadow could make you miss a scratch or two.
Inspect One Panel at a Time
Slow and steady wins the race . . . and tends not to incur wear and tear fines.
And don't forget the roof.
Inspect the Interior of Your Vehicle
Bit of a chore, but you've got make sure that there's no stains, holes, scratches or dents to the dashboard, seats and carpets.
Check Vehicle Documentation
Don't think they aren't going to look inside the glovebox.
Because the paperwork, first aid kit, vehicle handbook and anything else that came with the car should all still be there.
Summary
It's pretty natural for brand new cars to deteriorate over time, whether it's from the weather, contact with the road, or just normal usage. Hence why car leasing fair wear and tear is a thing.
Just don't expect to use it as a get-out-of-jail-free card for more serious damage. Be sure to check your car over and see a mechanic if there's anything that stands out.
Whilst your doing that, why not search for your next lease car? It's never too early.
FAQs
What is considered fair wear and tear on a lease car?
Fair wear and tear on a lease car consists of 'acceptable' damage that's usually caused by weather effects, contact with the road, and normal usage. Examples include small chips and minor wear on interior upholstery.
What is fair wear and tear guidelines?
The fair wear and tear guidelines constitute a list of damages deemed acceptable on a leased car at the end of a lease contract. These are set out online by the British Vehicle Rental and Leasing Association (BVRLA) and aim to provide an industry-wide standard.
What is excessive wear and tear on a car?
Excessive wear and tear on a lease car is usually defined as any damage that's caused by lack of care or harsh treatment on the part of the driver. This is when it stops being fair wear and tear and becomes 'unfair' wear and tear. Examples include cracks or holes on the windscreen and missing spare keys.