What is Fair Wear and Tear on Van Finance Deals?
January 7th, 2022
When you take out van finance deals, it’s important to make sure you’re informed about the whole process. Many of our customers have questions about the end of their lease, and (dependant on their finance agreement) what happens when they hand the vehicle back.
Wear and Tear refers to the deterioration of the vehicle as a result of normal use over the duration of the lease period. Each finance company will have individual specifications regarding wear and tear. These are built around the Fair Wear & Tear guidelines set out by the BVRLA (British Vehicle Rental and Leasing Association).
Van Finance deals: Why do we use the BVRLA guidelines?
Any damage to your vehicle will affect the residual value of your van at the end of the lease agreement and therefore may incur costs from the finance provider. The Fair Wear & Tear guidelines ensure that each vehicle is held to the same standard. If any damage is deemed to fall outside of these guidelines, this is when Excess Damage Charges will be incurred.
The vehicle finance agreement you have chosen will have end of lease options specific to that finance product. Some vehicle finance options will not require you to hand back the vehicle at the end of the agreement, and therefore you will not be subject to any excess damage charges regardless of the vehicle’s condition.
What is acceptable Wear & Tear?
Each finance company will have individual specifications regarding wear and tear. This will be detailed on your vehicle finance agreement.
Acceptable condition includes:
- Internal condition including cleanliness (make sure the vehicle is valeted)
- Vehicle body and paintwork (no deep dents or scratches)
- Mechanical Condition (all should be in working order)
- Tyre wear and wheel trims (no cuts or bulges/acceptable tread depth)
- Glazing and lights (no major windscreen chips/working lights)
- Keys (All keys should be present)
- Documentation (all documentation should be returned with the vehicle)
This is not an exhaustive list of the areas assessed – to learn more just visit the BVRLA website.
Unacceptable Wear & Tear on Van Finance Deals
Unacceptable wear & tear includes:
- Dirty/stained/ripped interior fabric and carpets
- Dents in the bodywork / deep scratches and dents in paint
- Poor Mechanical Condition due to misuse
- Cuts/Bulges/unacceptable tread depth on tyres
- Broken lights/glazing (including large chips)
- Missing keys
- Missing documentation (including MOT certificate if applicable)
If you are aware of any damage to the vehicle, the best option is to get this fixed by an approved garage prior to handing back the vehicle. Information on approved garages and process of reporting damage can be provided by your vehicle finance company.
Should you have any further questions regarding Fair Wear & Tear or your end of lease options, just Contact Us or call 01179625314 and speak to one of our van specialists.