If the end of your car lease is approaching, you might be starting to look at every little scratch, stone chip and mark and wondering whether it is going to result in a bill.
The good news is that leasing companies do not expect a car that has been driven for several years and thousands of miles to come back looking exactly as it did on the day it was delivered. Normal deterioration through everyday use is expected. This is where the BVRLA Fair Wear & Tear standard comes in.
The British Vehicle Rental and Leasing Association, better known as the BVRLA, publishes an industry standard to help distinguish reasonable wear from damage that could result in an end-of-lease charge.
However, there is an important point to make before we go any further. This article is intended as a guide, not a replacement for the current BVRLA Fair Wear & Tear Guide or the return conditions contained within your lease agreement. Standards can be updated, and individual leasing companies may have their own return requirements. Always check the latest guide and the information supplied by your leasing company before deciding whether damage needs repairing.
What happens at the end of a car lease?
With a typical Personal Contract Hire or Business Contract Hire agreement, you don't own the vehicle. At the end of the agreed term, the car is normally returned to the leasing company.
The vehicle will be collected and inspected, either at the point of collection or afterwards at a nominated inspection site, depending on the leasing company's process.
The inspection isn't simply about looking for scratches. The condition of the bodywork, wheels, tyres, glass, interior and equipment can all be assessed, alongside other factors such as servicing, maintenance, mileage and whether everything supplied with the vehicle has been returned.
If the vehicle meets the agreed return standard, there should be nothing unusual to worry about. If something falls outside that standard, however, an end-of-contract charge may be applied.
What is BVRLA Fair Wear & Tear?
Fair wear and tear is the reasonable deterioration you would expect to see as a result of normal use of a vehicle. It is different from damage.
For example, some minor deterioration to a car's paintwork after several years and tens of thousands of miles can be expected. A large dent caused by hitting a bollard is damage resulting from a specific incident and would be treated differently.
The age and mileage of the vehicle are therefore important when assessing its condition. The objective isn't necessarily to return a showroom-perfect car. It is to return a car in a condition that is reasonable for its age and use and complies with the return standard agreed with the leasing company.
When should I start preparing to return my lease car?
Don't wait until the night before collection.
The BVRLA recommends appraising your vehicle around 10 to 12 weeks before it is due to be returned. That gives you time to properly assess its condition, check your paperwork and arrange professional repairs if anything falls outside the acceptable standard.
Personally, I think this is one of the most useful pieces of advice in the entire process. Finding a damaged alloy or deep scratch two or three months before collection gives you options. Discovering it the morning the vehicle is being collected doesn't.
Start by giving the car a thorough clean. Dirt can hide scratches and other defects, while water on freshly washed paint can make imperfections more difficult to see, so let the vehicle dry before inspecting it.
Choose somewhere with good natural light and walk around the entire car slowly. Look at each panel from different angles and crouch down to look along the side of the vehicle, as reflections in the paint can make dents much easier to spot.
How big a scratch is allowed on a lease car?
This is probably one of the most common questions people ask before returning a leased vehicle.
Under the BVRLA standard, there are specific criteria covering scratches and abrasions. Historically, the BVRLA guidance has included tolerances based on the size, number, location and severity of marks, rather than treating every visible scratch as chargeable damage.
The important point is that you should check the current BVRLA Fair Wear & Tear Guide supplied for your vehicle rather than relying solely on measurements quoted online. The standard can be revised and your leasing company's return conditions are ultimately what will be applied to your vehicle.
As a general principle, a small surface mark that can be polished out is very different from a deep scratch that has penetrated through the paint and exposed primer or bare metal.
If you are unsure, measure the scratch, photograph it clearly and compare it with the latest guide. You can also ask your leasing company for advice before collection.
How big a dent is acceptable on a leased car?
As with scratches, not every tiny dent automatically means you will receive a bill.
The BVRLA Fair Wear & Tear standard considers factors including the size, number and position of dents and whether the paint surface has been broken.
Small dents may fall within the acceptable standard, whereas larger dents, numerous dents on the same panel or damage in certain areas may not.
Again, don't rely on a measurement you found in an old forum post or article. Use the latest BVRLA guide and your leasing company's return conditions to assess the damage.
What about stone chips?
Stone chips are almost inevitable on a car that has covered a reasonable mileage, particularly on forward-facing areas such as the bonnet and front bumper.
The BVRLA standard recognises this, but the number, size and severity of chips can still matter.
A handful of small stone chips consistent with the vehicle's age and mileage is very different from extensive chipping, corrosion or significant areas of damaged paint.
Check the current guide for the applicable limits.
Will I be charged for damaged alloy wheels?
Alloy wheels are another common source of concern at the end of a lease.
Small marks and minor deterioration may be acceptable within the applicable standard, but significant kerb damage, deep gouges, cracks, distortion or poor-quality previous repairs can potentially result in charges.
Check every wheel carefully, not just the ones you can see from your driveway. It is very easy to forget about a damaged passenger-side rear wheel until collection day.
If your wheels have diamond-cut finishes, be particularly careful when choosing a repairer. A cheap cosmetic repair isn't necessarily a good repair, and poor refurbishment can itself cause problems when the vehicle is inspected.
What condition do the tyres need to be in?
Your tyres need to be legal, safe and in an appropriate condition when the car is returned.
Look at all four tyres and the spare, where applicable. Check for cuts, bulges, damage and uneven wear as well as remaining tread depth.
You should also check your lease agreement before replacing tyres. Leasing companies can have requirements concerning the quality, type and rating of replacement tyres, so fitting the cheapest tyre you can find immediately before returning the vehicle isn't necessarily the right approach.
If your car has a maintenance package that includes replacement tyres, speak to your leasing company or maintenance provider well before the return date if you think replacements are required.
What about the windscreen and glass?
Inspect the windscreen, windows, lights and mirrors carefully for chips, cracks and other damage.
A windscreen must meet the relevant standard, and damage affecting the driver's view or causing the vehicle to fall below MOT requirements may need attention before it is returned.
Modern cars make windscreen replacement slightly more complicated because cameras and sensors for Advanced Driver Assistance Systems are often mounted around the windscreen. Where required, these systems need to be correctly recalibrated following glass replacement.
If you have windscreen cover as part of your motor insurance, it may be worth checking your policy and speaking to your insurer well before the lease ends.
Does the inside of a lease car have to be perfect?
No, reasonable deterioration through normal use is expected, but there is a considerable difference between normal wear and actual damage.
Before returning the vehicle, clean and preferably thoroughly valet the interior. Check the seats, carpets, dashboard, door trims and luggage area.
Pay particular attention to permanent stains, burns, tears, holes, unpleasant odours and damage to trim. If you regularly transport children, pets, bikes or bulky equipment, spend some extra time checking the rear seats and boot.
Don't forget to remove all of your belongings. Check the glovebox, centre console, door pockets, boot compartments and under the seats.
Do I need to service my car before returning it?
Your lease vehicle should have been maintained according to the manufacturer's servicing requirements throughout the agreement.
If a service is due before the end of your contract, don't simply assume you can return the car without having it completed because the vehicle is going back soon.
Failing to follow the required service schedule can potentially result in charges and may also cause warranty problems during the lease.
Make sure the car's service history is complete and that you have any documentation required by the leasing company. With many modern cars using digital service records, it is still worth confirming that everything has been correctly recorded.
Do I need an MOT before returning a lease car?
If the vehicle requires an MOT during the period in which you are responsible for it, you need to ensure it has a valid MOT.
Don't assume the leasing company will deal with it simply because the contract is nearly finished. Check your collection date, MOT expiry date and leasing company's instructions well in advance.
What happens if I've gone over my lease mileage?
Excess mileage is separate from fair wear and tear.
Your monthly rental is partly calculated using the mileage agreed at the beginning of the lease. If you return the vehicle having exceeded the contracted mileage allowance, an excess mileage charge may apply.
The rate should be set out in your lease agreement and is normally calculated on a per-mile basis.
For example, if your agreement allowed 30,000 miles and you return the vehicle at 33,000 miles, you could be charged the applicable excess mileage rate for those additional 3,000 miles.
If you realise well before the end of your agreement that you are significantly exceeding your contracted mileage, contact your leasing company. Depending on the agreement and provider, there may be options available.
Should I repair damage before returning my lease car?
Potentially, but don't automatically repair everything.
Start by comparing the damage against the current BVRLA Fair Wear & Tear Guide and your leasing company's return standard. If the mark is acceptable, repairing it could simply mean spending money unnecessarily.
If damage is clearly outside the standard, arranging a repair yourself before collection can sometimes make sense.
However, any work should be completed professionally by a reputable repairer and to the appropriate standard. The BVRLA advises that repairs should come with a fully transferable warranty.
This is important. A poor smart repair, badly matched paint or low-quality alloy refurbishment could leave you no better off when the vehicle is inspected.
What should come back with the car?
Think back to everything that came with the vehicle when it was delivered.
Depending on the car, this could include both keys, charging cables, parcel shelves, removable boot floors, load covers, headrests, handbooks, locking wheel nut keys and other accessories supplied with the vehicle.
Electric cars deserve particular attention. Make sure any charging cables supplied with the car are present, in good condition and ready to return.
It is worth doing this check several weeks before collection. Discovering that your spare key disappeared during a house move two years ago is much less stressful when you still have time to do something about it.
Should I take photographs before my lease car is collected?
I would.
Take clear, date-stamped photographs of the car shortly before collection, including every side of the vehicle, the wheels, interior, windscreen, mileage and any areas of existing damage.
These aren't a substitute for the official inspection, but they give you your own record of the condition and mileage of the vehicle when it left your possession.
If possible, be present when the car is collected. Check the condition report carefully and make sure any readily apparent damage recorded by the collection agent accurately reflects the condition of the vehicle.
Is the collection inspection always the final inspection?
Not necessarily.
Some leasing companies carry out a full condition inspection when the vehicle is collected. Others may collect the vehicle before completing a more detailed inspection at a nominated location.
This is why it is important to understand your leasing company's process beforehand.
If a full inspection can't be completed at collection, perhaps because the vehicle is dirty or the weather is poor, this should be recorded appropriately.
What happens if I disagree with an end-of-lease damage charge?
Don't assume you have to accept a charge without questioning it.
Start by asking the leasing company to explain the charge and identify why the damage falls outside the agreed return standard.
Compare this with the return conditions and Fair Wear & Tear Guide applicable to your agreement.
For disputes about vehicle condition or damage, BVRLA guidance provides for the evidence to be examined by an independent qualified engineer agreed by both parties. Where the engineer finds in the customer's favour, the BVRLA member should refund the reasonable cost of that examination.
If a dispute with a BVRLA member cannot be resolved directly, it may also be possible to refer the matter to the BVRLA's Alternative Dispute Resolution service.
A simple lease car return checklist
Around 10 to 12 weeks before your lease ends, I would recommend working through the following:
Request or download the latest applicable BVRLA Fair Wear & Tear Guide and check your leasing company's own return requirements.
Check your current mileage against your contracted mileage allowance.
Confirm whether any servicing or MOT is due before collection.
Wash and dry the vehicle before carrying out a detailed inspection in good daylight.
Inspect every body panel for scratches, chips and dents.
Check every alloy wheel and tyre.
Inspect the windscreen, windows, mirrors and lights.
Check the seats, carpets, dashboard, trim and boot for damage.
Test the car's main equipment and make sure there are no unresolved warning lights.
Locate both keys and all equipment originally supplied with the vehicle.
For an EV or plug-in hybrid, locate the charging cables supplied with the car.
Arrange professional repairs where necessary and appropriate.
Give the vehicle a thorough clean before collection.
Photograph the vehicle, wheels, interior and mileage before handing it over.
Be present for collection where possible and retain a copy of the collection documentation.
BVRLA Return Ready
The BVRLA also offers a free tool called Return Ready, which can help drivers understand how specific areas of damage relate to the BVRLA standard.
You can use your smartphone to photograph damage you've already identified and the tool will show you relevant BVRLA guidance.
It is important to understand what it doesn't do, though. Return Ready isn't a formal vehicle inspection, doesn't provide a repair estimate and can't guarantee whether your leasing company will accept a particular piece of damage.
Think of it as another useful tool to help you prepare rather than a replacement for the full Fair Wear & Tear Guide.
The most important thing: check the latest guide
If there's one thing to take away from this article, it is not to panic about every little mark you find on your car.
A leased vehicle is expected to have been used. Fair Wear & Tear exists to recognise the reasonable deterioration that comes with that use while distinguishing it from damage, neglect or missing equipment.
Give yourself plenty of time before collection, inspect the car properly, understand your contract and deal with anything that genuinely needs attention.
Most importantly, always refer to the latest BVRLA Fair Wear & Tear Guide and the return standard supplied by your leasing company before making decisions about repairs. Guidance, standards and individual leasing company requirements can change, so those documents should always be your definitive reference point.