What is fair wear and tear on a leased vehicle?

Fair wear and tear is the normal ageing a vehicle shows from careful use over the contract term, such as light stone chips or minor interior marking. Damage from accidents, neglect or misuse goes beyond it, and the funder may charge for it when the vehicle is returned.

The detail

Every business contract hire agreement says the vehicle must be returned in a condition consistent with its age and mileage. Most funders base their standard on the BVRLA Fair Wear and Tear Guide, but the exact standard is set out in your own agreement, so read it before you sign.

Usually treated as fair wear and tear

• Light stone chips on the front of the vehicle
• Small surface scratches that can be polished out
• Minor wear to the driver's seat, pedals and load area that matches the mileage
• Tyres worn evenly and still above the legal minimum tread depth

Usually treated as damage

• Dents, deep scratches or paint damage that has gone through to the metal
• Cracked or broken lights, mirrors and glass
• Tyres with cuts, bulges or uneven wear caused by poor tracking or neglect
• Torn, stained or burnt upholstery, and broken interior trim
• Missing items, such as the spare wheel kit, keys or service book
• Signs of poor repairs

Things that also matter

• Servicing: missed services or a missing service history can count against you, because the contract usually requires the vehicle to be maintained to the manufacturer's schedule.
• Vans: load areas are expected to show working use, but holes through the bulkhead, badly dented panels and damaged floors are generally not accepted as normal wear.
• Cleanliness: the vehicle should be returned reasonably clean so it can be inspected properly.

A worked example

Imagine two vehicles returned at the end of the same type of agreement.

The first has a scattering of small stone chips on the bonnet, a light scuff on one alloy wheel rim that has not damaged the wheel itself, and some gentle wear on the driver's seat bolster. The service book is fully stamped and the tyres are evenly worn. An inspector working to the BVRLA guide would normally regard this as ordinary use for the vehicle's age and mileage.

The second has a dented rear door, a cracked front bumper, a torn rear seat and one tyre with a bulge in the sidewall. These are not the result of normal ageing. The funder would normally treat them as damage and may invoice for the repair or replacement, as set out in the agreement.

In both cases the funder's inspection and the terms of your agreement decide the outcome, not a general rule. Taking dated photographs before collection and asking for the inspection report in writing helps if anything is disputed.

Related questions

• Can I repair damage myself before handing the vehicle back? Often yes, but poor-quality repairs can themselves be treated as damage, so a reputable repairer matters.
• Is there an early inspection option? Many funders offer a pre-return check, which lets you see likely charges beforehand.
• How does mileage relate to condition? Excess mileage is charged separately from condition, but higher mileage is taken into account when judging wear.
• Do I need to keep servicing the vehicle? Usually yes, and the agreement will say whether this must be done at a franchised dealer or can be done elsewhere.

Questions people ask

Who decides what counts as fair wear and tear?

The funder's inspector decides at return, applying the standard written into your agreement, which is usually based on the BVRLA guide. Ask for the standard before you sign.

Will I be charged for every scratch?

Not necessarily. Minor marks within the funder's guidelines are normally accepted, while damage beyond them may be charged. What is accepted depends on your agreement.

Can I challenge a damage charge?

Yes. Ask for the inspection report and photos, compare them with the agreement and your own records, and raise any disagreement with the funder in writing.

Does contracthire.tv carry out the inspection?

No. Swiss Vans Ltd is a credit broker, not a lender, and the inspection and any charges are handled by the funder named in your agreement.