End Of Lease Vehicle Inspections
Some people reading this article about end of lease vehicle inspections are those who have leased vehicles in the past and may have received a nasty surprise following the end of the lease period. This nasty surprise comes in the form of a letter, stating that you owe the leasing company more money for the car which you have recently returned.
The reason that this can occur is because the monthly leasing cost of a vehicle is calculated based on the predicted depreciation of the vehicle during the leasing period. This is the forecast value or residual value of the vehicle at the end of the lease period. A crucial factor which dictates the prediction of the residual value is that the vehicle returns in the appropriate condition for both its age and mileage.
Similar to the sale of used cars, a lease car which is in poor condition has a poor sale value. Therefore end of lease charges reflect the loss in predicted value of the vehicle due to it being returned in a condition worse than predicted. As a leasing individual it is your job to cover the difference in price.
There are a number of bodies, such as the BVRLA, who provide guidelines for the condition of vehicles at various stages of their lifetime. The BVRLA provide a “fair wear and tear” policy, which is an industry standard that reputable leasing companies adhere to.
There several ways in which you can reduce the likelihood of receiving charges following the end of the lease. These measures are largely simple in their nature, such as ensuring that vehicle is maintained in a clean and tidy condition throughout the lease. Whilst this measure sounds simple it provides a means of being quickly able to identify any damage to the vehicle as and when it occurs. Another measure is to have any and all damages, dents and chips repaired as and when they occur.
Above all however there is one measure which enables you to become aware of any and all damage on the vehicle before the lease is over, allowing you to prepare in the eventuality that you will incur additional costs. This measure is an end of lease vehicle inspections, as a consumer you have the right to obtain an inspection from an independent and qualified engineer. Typically an engineer will assess your vehicle along the BVRLA wear and tear guidelines and provide a report. This is worth undertaking around five weeks before the lease is due to end.
Chips Away provide independent end of lease vehicle inspections and other related services, using the BVRLA wear and tear guidelines. For further information, or to arrange an appointment, a member of our customer service team can be contacted by calling 0161 483 0006.