EDITORS PICKS
Returning your vehicle at the end
of the contract By Capital Fleet Solutions
At the end of some finance contracts, you will be required to return the vehicle to the leasing provider. This guide gives you an overview of what to expect when the time comes to return your vehicle.
Why do we have end-of-lease charges?
End-of-lease charges occur when the vehicle, its equipment or accessories are not used, maintained or looked after as originally agreed at the start of the lease. The charges compensate the leasing company for the cost of rectifying damage or missing items such as keys or service history.
They can still be applied at end of lease in cases where the leasing provider decides for commercial reasons not to repair damage, replace missing equipment, etc, before the vehicle is sold.
Customers are not charged at the end of lease for any refurbishment that arises from normal wear and tear. Customers can arrange to repair any damage that’s outside the agreed return standard before returning the vehicle, provided the repairs are carried out to a professional standard by a reputable repairer who can provide a fully-transferable warranty on the work.
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. Every agreement will make some allowance for fair wear and tear as opposed to specific damage, which the customer will be required to rectify.
Who will collect and inspect the vehicle?
The vehicle will be collected and inspected by an agent of the lease provider. The lease provider must advise the customer on
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what to expect when the vehicle is collected. Some may arrange a full vehicle inspection and condition report when the vehicle is collected. Others will collect the vehicle and complete the full inspection later at the lease provider’s nominated site. It is recommended that the customer is present when the vehicle is collected.
At collection, the customer and representative from the lease provider must check and agree on the vehicle’s condition. All readily apparent damage to the vehicle will be noted on a vehicle collection sheet/hand-held device and both parties should sign the documentation or hand-held device.
If the vehicle cannot be inspected for any reason, due to poor weather or poor light, for example, the customer will be asked to agree to abandon the inspection and sign the condition report to that effect.
If the vehicle is not sufficiently clean to allow a detailed inspection, the collection process may need to be abandoned and a charge may be applied. The customer will be asked to agree to abandon the inspection and sign the condition report to that effect.
If the leasing provider intends to charge for damage or missing equipment when the vehicle has been inspected, they must advise the customer of this no later than four weeks after the vehicle was returned. They must provide a summary breakdown of the charges, an explanation of how the charges have been calculated and photographic/video or other documentary evidence supporting why the charges have been made. They also need to advise on how any queries concerning these charges can be made.
What if there is a dispute with the charges?
In the event of a dispute about the condition or damage to the vehicle, the customer has the right to pay for an examination of the evidence by an independent qualified engineer, (eg an
| October 2024 |
www.draintraderltd.com
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