Fair Wear and Tear on a Contract Hire Vehicle
What it is in plain English
Fair wear and tear is the reasonable deterioration that occurs when a vehicle is used in a normal way over the course of a contract hire agreement. It acknowledges that your van will not be in showroom condition when returned, provided it has been maintained correctly and driven responsibly throughout your lease term.
How it works step by step
At the end of your contract, a professional vehicle inspector will conduct a visual assessment of your van. They follow industry-standard guidelines to distinguish between acceptable wear and damage caused by neglect or misuse. They check the exterior panels, interior upholstery, wheels, and mechanical performance against the condition it was delivered in, excluding normal age-related usage.
What you pay and what is included
You pay nothing extra if the vehicle meets the fair wear and tear standards set by the finance provider. However, if the inspection reveals damage that goes beyond these guidelines, such as significant dents, deep paint scratches, or torn upholstery, you will be liable for the repair costs to restore the van to a standard that matches its age and mileage.
Who it suits and who it does not
This approach suits van operators who look after their fleet, carry out regular maintenance, and keep vehicles clean. It is less suitable for businesses that subject their vans to heavy-duty, off-road, or hazardous environments where excessive body damage is inevitable, as the repair bills for those specific issues can become substantial upon the vehicle's return.
Questions to ask before you sign
Always ask your provider for a copy of their specific fair wear and tear guide before signing a contract. You should also confirm if there are set charges for specific types of damage, how disputes are handled if you disagree with an inspection report, and what records you need to keep regarding the vehicle's service history throughout the lease.
FAQs
What counts as fair wear and tear when you hand a contract hire vehicle back? Fair wear and tear covers light scuffs, minor stone chips, and general interior fading that occur through normal, daily use. It does not cover major damage, such as dents, cracked glass, or heavy interior staining that requires professional deep cleaning.
Does my van need to be professionally valeted before return? While not strictly required, a clean van is easier to inspect. A basic wash is usually sufficient, provided the vehicle is free of excessive mud or interior waste that might hide potential damage.
Can I repair minor damage before returning the van? Yes, you can have damage repaired yourself, but it must be completed to a professional standard. If the repair work is deemed poor quality, you may still be charged for further rectification.
How can I avoid surprise end-of-contract charges? Keep the vehicle serviced according to the manufacturer's schedule, address minor issues as they happen, and perform your own inspection a few weeks before the return date to identify any areas that may need attention.
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