Fair wear and tear standards

What is fair wear and tear?

Fair wear and tear occurs when normal usage causes deterioration to a vehicle. It is not to be confused with damage which occurs as a result of a specific event or series of events such as impact, inappropriate stowing of items, harsh-treatment, negligent acts or omissions.

Why do we have end of contract charges?

End of contract charges reflect the loss of value in the vehicle to the leasing company when it is returned in a poorer condition than originally contracted. The leasing company will not necessarily carry out any damage repair or refurbishment prior to selling the vehicle. BVRLA members should clearly explain the end of lease return procedure to their customers.

BVRLA members are encouraged to clearly explain to the customer their policy on the type of damage that will be chargeable, state the starting point in terms of restoration costs and provide a statement of what constitutes fair wear and tear. Additionally, the customer’s right to inspect and/or obtain evidence of damage to the vehicle should be clearly specified. Most members will employ the BVRLA’s industry fair wear and tear standard.

The BVRLA industry standard

BVRLA produces three different Fair Wear and Tear Guides, for passenger vehicles including MPVs, light commercial vehicles and heavy goods vehicles. The aim of the guides is to provide an industry-wide, accepted standard that defines fair wear and tear when vehicles are returned to a BVRLA member at the end of a contract or finance agreement. The guides also provide advice for best practice in vehicle maintenance and upkeep that will prevent unacceptable wear and tear from occurring.

The industry standard is defined using both images and text for every aspect of the vehicle's condition in the following areas:

General appearance, documentation, keys
Paintwork, vehicle body, bumpers and trim
Windows and glass
Tyres and wheels
Mechanical condition
Vehicle interior
Equipment and controls

You can request a copy of the BVRLA industry standard through your leasing company. Alternatively you can order a hard copy direct for a small charge.

Appraising your vehicle

We recommend that you carry out an appraisal of the vehicle before it is due to be returned. This will identify any damage that does not constitute fair wear and tear and requires repair. Use the BVRLA Fair Wear and Tear Guide and these key tips when appraising your vehicle:

Carry out the appraisal of the vehicle 10 – 12 weeks before the vehicle is due for return. This will allow you to arrange to have any unacceptable wear and tear rectified.
It is important to appraise the vehicle as honestly as you can – be objective. Ask a friend or colleague to help you.
Choose a time and place with good light. This is how the leasing company will examine your vehicle. Appraisals carried out in poor light invariably miss some faults.
Before appraising the vehicle, make sure that it has been washed and is thoroughly clean but remember to allow time for it to dry. Water on the paintwork can mask faults.
Walk all the way around the vehicle and examine closely each panel including the roof, bonnet, doors, and body for significant damage. Observe where the light is reflected differently from dents and scratches.
Crouch or kneel down at the front and rear of the vehicle and look along each side. This will help you see scratches and dents that may otherwise be difficult to spot.
Inspect lamps, lenses, windows and mirrors for chips, cracks and holes.
Check the tyres (including spare) for damage. Check that the wear on the tread across each tyre is even. Inspect wheels and wheel trims (if fitted) for deterioration.
Clean and valet the interior.
Check upholstered areas for odours, tears, burns, stains and wear.
Inspect all controls, including audio equipment and accessories – they should be present and fully functional.

Collection procedures

At the end of the lease when the vehicle is to be collected, representatives of the member and the customer must check and agree on the vehicle condition. All readily apparent damage to the vehicle will be noted on the vehicle collection sheet, which you’ll know about if you’ve completed your own appraisal.

If, for whatever reason, you cannot be present for the collection, or the vehicle cannot be inspected due to poor weather or if the vehicle is too dirty, the member should send you a formal notice in writing confirming the reason for non-inspection, including a clear statement that the vehicle will undergo a full inspection at the member’s nominated site.

BVRLA conciliation service

All contract hire and leasing companies in BVRLA membership are obliged under the BVRLA Code of Conduct to trade fairly and responsibly in all dealings with their customers. On occasion, disagreements will arise between customers and BVRLA members which cannot be settled directly. Unresolved disputes can be referred to the Association, providing that the dispute is with a BVRLA member.

To register a complaint, complete the BVRLA complaint form and submit to:

The Chief Executive
British Vehicle Rental and Leasing Association
River Lodge
Badminton Court
Amersham
HP7 0DD