When a customer has come to the end of their leasing contract and are ready to return their car to the finance company, the car will undergo a check for fair wear and tear. This procedure is put in place to check if the car has undergone any more damage perceived worse than what was expected. It is nearly inevitable even with the greatest of care, that the vehicle that you have leased will most likely have minor damage, such as stone chips, little scratches and tiny dents. As you aren't the owner of the vehicle, you will either have to get the car repaired before you return it to the finance company, or you may incur charges after you have returned it, completely dependant upon the damage. There is a fair, wear and tear guide published by the BVRLA which outlines the standard that the vehicle's condition should be in when returned.
No, car insurance does not cover regular leasing wear and tear.
'BVRLA - British Vehicle Rental & Leasing Association
The BVRLA is a trading body for businesses concerning vehicle rental, leasing and fleet management (i.e MYNVL) to make sure that businesses are adhering to the high standards of professionalism by maintaining industry standards and through being compliant throughout all of our processes.
Please ask us for the BVRLA wear and tear guide.
Ideally, yes you should pay for repairs on a leased car (both personal and business), especially if the damage is significant. If you have opted for a maintenance package when taking out your lease you will have less to worry about as a maintenance pack covers tyres and services otherwise you will have to cover the cost yourself. Maintenance also covers breakdown service (with the AA), including roadside assistance, recovery and relay plus service. For scuffs, weathering, scratches and other minor damage, charges will all be dependant upon the fair wear and tear standards.
Yes, if the damage falls outside of the fair, wear and tear guidelines then you will be charged for the damage.
Many drivers steer away from the idea of leasing, purely for the fact that they think their bank account will be nuked if you are unlucky enough to damage the car or even write it off! But, that is a myth... Accidents do happen, everyone knows that; people make mistakes in their cars every day for a variety of different reasons, especially when we don't intend to. Like all accidents, different routes of action can be dependant on the situation, the other driver, how much damage is caused and a variety of other different factors; so we can't advise exactly what will happen if it does happen.
In terms of damaging the car; as we aren't the owners of the vehicle and just a broker, we have little say on what will happen; but don't let that stop you from contacting us as we can advise you on the best route of action. Generally speaking though, the first thing you should do is to contact your insurance and also speak to the finance company that you have taken the lease out with and even have them speak to one another directly to sort out what you should do next.
So, what happens if I write off the vehicle? This is the question many people worry about, and they shouldn't as much as they do¦ If the car is written off from a nasty collision or an accident, the finance company will treat it as though you have purchased the car, as there is no way that the car can it be returned to its original state and the state you were supposed to hand it back like. In this case, a finance figure will be decided for you to pay, and your insurance will cover what the car is worth at the time in which it was written off, similar to as if you had purchased it straight up.