Fleet cars: What is fair wear and tear for a company car?

You’ve enjoyed your company car. You’ve had battles together, and you’ve got memories. But the leasing agreement is at an end, and it’s time for it to go back. Before it does though, you need to go over it carefully to make sure that any battle scars don’t fall foul of the leasing firm’s fair-wear-and-tear policy. If they do, you could be facing some hefty additional charges.

So, not only does it pay to look after your car, but it’s also wise to understand exactly what “fair wear and tear” is, because one person’s (or company’s) definition is quite likely to be different from another’s.

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The sensible approach is to think that fair wear and tear tends to happen during normal day-to-day use of a vehicle. That’s just natural deterioration. However, if the car suffers something more serious, such as damage inflicted by you or someone else, then that would fall outside the fair-wear-and-tear remit.

The British Vehicle Rental and Leasing Association (BVRLA) recognises that the definition of fair wear and tear can vary, and so has come up with an industry-standard guide to wear and tear on a lease vehicle. Therefore, while most finance companies have their own guides to what’s expected when their vehicles are returned, if you follow the BVRLA guide you’ll be in the right ballpark.

The differences in policies make it all the more important that you check your finance company’s rules, both when you first get your new vehicles, and when it goes back.

Something to be aware of is that different wear-and-tear rules will likely apply, depending on whether you’re driving a car or a light commercial vehicle (e.g. a van).

The most common repairs required on fleet cars are:

– Paintwork scratches

– Bodywork dents or chips

– Upholstery or carpets that are ripped or have burns marks

– Wheel damage

How to avoid breaching a fair wear and tear policy

Preparation is key. And a good time to start getting things in order is when the end of your company car leasing term is two or three months off.

Firstly and most importantly, make sure you have a copy of the leasing company’s wear-and-tear guide. Then it’s time to get the magnifying glass out, and carry out a thorough inspection of your vehicle. Make sure you do this well in advance of the end of your lease, to give you time to get any repairs carried out.

After that, you need to get together all of the car’s paraphernalia, including all the paperwork that came with it when new, all sets of keys, and bits and bobs such as locking wheelnuts.

Read more: Fleet car insurance guide

Eight essential checks before you hand back your company car

1. Get the car fully valeted, then check it over in good light on a dry day (raindrops mask all manner of blemishes).

2. Check each body panel for scratches or dents. Dents up to 10mm long (no more than two per panel) and scratches up to 25mm are normally acceptable.

3. Carefully look over (and through) every piece of glasswork – windows, door mirrors and lights. Don’t worry unduly about light s4. cratches, because these are most often seen as acceptable as long as they don’t interfere with the driver’s line of sight. Anything worse than that, including chips, cracks or holes must be fixed (or the entire glass panel replaced).

4. Give the wheels and tyres (including the spare wheel if your car has one) a close look over. While light kerbing scratches on the rim are acceptable, any dents and holes are certainly not. All tyres must have a legal amount of tread on them and be free of bulges, cuts and other damage.

5. Look at the interior – if the seats or interior trim has any cuts, burns or rips in it, you’ll need to get it fixed. You should get rid of any nasty odours, too. Our guide to the best upholstery cleaners may help here.

6. Not many people are fortunate enough to have a convertible as a company car, but if you are, make sure the roof mechanism is working as it should. If it isn’t, get it fixed.

7. The car must be in a state such that it would pass an MoT test, so it’s worth getting all of the oily bits inspected by a mechanic. Obvious MoT fails such as shuddery brakes or a noisy exhaust must be fixed.

8. If you run an electric company car make sure it’s fully charged before it is collected.

Conclusion – prevention is better than cure

The best way to minimise the risk of penalty charges at the end of your leasing agreement is to look after the car from the outset.

It’s worth paying for a proper clean inside and out once a month, and if one wheel suffers an unplanned interaction with a kerb, get it fixed. Keep a close eye on detachable bits, such as the parcel shelf, luggage nets and straps, charging cables and other accessories, and make sure these are all returned with the vehicle.

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