Running a company car can be an essential to a job or it can be a great perk that simplifies running a car and possibly provides a car you wouldn’t otherwise have or be able to afford. In either case, both your company and the lease firm that provides the car will expect it to have been looked after to a certain standard.
Failure to meet that standard will more than likely result in additional fees when the car is collected.
However, it is possible to avoid these costs with a little care at various stages while you’re running the car. Reputable lease companies follow a code of conduct when it comes to judging what damage is chargeable and what is fair wear and tear. Published by the British Vehicle Rental and Leasing Association and, you guessed it, is called the BVRLA Fair Wear and Tear Standard, the guide sets out what’s acceptable and what’s not.
From day one
When the car arrives, or even before, make sure you’ve read the rules. Either your company or lease provider will have a set of terms and conditions about how the car should be looked after. Because of the real potential for fines, don’t ignore these. They will set out what’s expected and even a rough familiarisation will help to know what’s expected and what you can do to eliminate any fines or end of lease charges.
Along with this paperwork, request a copy of the BVRLA guide from your leasing company and get familiar. It’s not as daunting as it sounds and a lot of it is common sense.
Over the two, three or four years you’re running your company car, get into the habit of completing a few checks every month.
It’s best to hand wash your company car as it’s one of the best ways of inspecting the bodywork. If you spot any dings or scrapes check against the guide and then get any fixed early as it will either be covered by insurance or be cheaper than having the lease company reclaim the costs – which will include their administration margin.
Don’t forget about the inside. Clean up the interior and check there isn’t any damage that needs fixing.
Check your tyre pressures. If these are as they should be it means tyre wear will be even and not excessive on any one wheel.
Check your oil level. While most modern cars use up very little oil, it’s still worth checking so that you don’t end up with costly problems down the line.
Also keep an eye on the service schedule and make sure you stick to it. Late, or missing, services will add to the end of lease costs.
Three months to go
Time to repeat the above. Two or three months should be enough time to go over your car one more time to check for any damage and get it fixed. It’s also a good point to make sure you have all the necessary paperwork ready.
As well as checking for possible damage, also check that everything’s working as it should and there aren’t any warning lights on the dashboard. Odds are, anything not working can be fixed under warranty by the dealer.
A few days to go
The BVRLA advises you’re as honest as possible with yourself about any damage. It recommends double-checking the car with the help of a friend or colleague.
With a few days to go give the car a final clean, inside and out.
Check the car in good light, when it’s dry and clean – this is how the lease firm that’s collecting the car will do it.
Don’t just walk round the car to look for dings and scrapes, crouch down and look along the sides, inspect the wheels and the roof too – obviously you’ll have to stand up for that part.
Make a list of everything you’ve spotted.
Departure day
Make sure you’re available on the day the car goes back so that you can walk round the vehicle with the person who’s collecting it. They’ll usually do an inspection, noting any damage and get you to sign-off the assessment.
It’s a good idea to take pictures of the car from a few angles at this time, just in case there’s any dispute over damage.
How to complain
If you’ve followed the above and you still incur costs you’re not expecting, feel are unfair and not in line with the BVRLA Fair Wear and Tear Standards then you have the right to complain.
In this situation, the BVRLA advises: “In the event of a dispute about the condition or damage to the vehicle, customers have the right to pay for an examination of the evidence by an independent qualified engineer, for example an engineer who is unrelated to the original inspection and agreed by both parties. The engineer's decision will be binding on both the customer and the BVRLA member. If the engineer finds in the customer's favour, the BVRLA member will refund the reasonable cost of the examination to the customer.”
Keyword: How to avoid extra charges when returning your company car