Leasing Wear and Tear Guide | Nationwide Vehicle Contracts (2024)

This guide explains the fair wear and tear process for lease vehicles, including a breakdown of what is contained in the guidelines and examples of some of the most common problems that result in customers paying lease-end penalty charges.

This guide also contains advice about maintaining your lease vehicle and the preventative action you can take to keep your lease vehicle in acceptable condition and minimise de-hire charges.

Find out more about how fair wear and tear guidelines work below.

• Prepare returning your vehicle
• What kind of damage is acceptable on a leased vehicle?
• How to rectify any damage
• Damage Estimates

Please note, the information provided on this page is intended as a guide only.

What is fair wear and tear?

Fair wear and tear is the natural deterioration that occurs to a car or van due to regular use throughout the lease term. It is not to be confused with damage caused by an accident, negligent behaviour or poor treatment.

When you return your vehicle to the finance provider at the end of your agreement, it will be inspected for any damage that falls outside 'fair wear and tear'. You will be liable to pay for any excess damage found in the form of lease-end penalty charges.

The same fair wear and tear rules apply for business and personal customers, although there are three different guides for different types of vehicles:

• Cars
• LCVs (light commercial vehicles including vans and minibuses)
• HGVs (heavy goods vehicles – those over 3.5 tonnes GVW)

The British Vehicle Rental and Leasing Association (BVRLA) – the leasing industry’s trade body – provides general guidelines onwhat constitutes fair wear and tear. These independent guidelines ensure the rules are clear, easily understood and fair for everyone involved.

How to get a copy of the fair wear and tear guidelines

Although the BVRLA provides the general guidelines, each finance provider will have its own set of fair wear and tear rules, broadly based on the general guidelines. You must follow the guidelines from your specific finance provider to avoid any unexpected costs at the end of your lease contract.

If you are nearing the end of your lease and want a copy of your vehicle's fair wear and tear guidelines, please contact Nationwide Vehicle Contracts on 0345 811 9595.

What is contained in the guidelines

Before returning your vehicle, please ensure you consult the official wear and tear guidelines from your finance provider. The guidelines detail what is acceptable for different areas of the vehicle and include specific guidance with regards to the following areas:

• General appearance and road safety
• Documentation and keys
• Paintwork, body, bumpers and trim
• Windows, glass, door mirrors and lamps
• Tyres and wheels
• Mechanical condition
• Vehicle Interior
• Equipment and controls

The guidelines also include:

• An explanation as to why end-of-lease charges exist
• Guidance as to how to go about checking your vehicle for damage prior to handover
• Photographs to illustrate acceptable and unacceptable damage on vehicles returned at the end of a lease
• Glossary of terms defining various types of damage, for example, ‘abrasion’, ‘dent’ and ‘chip’

If you’re reaching the end of your lease contract, taking the time to prepare your car or van properly for inspection could be the difference between paying a penalty charge and not.

Naturally, it is impossible to cover every single form of damage, but the tips below should help give you an idea of the minimum return standards expected and how you can rectify any damage you find.

Start preparations early

When vehicles are returned at the end of their contract, they should be in good condition for their age and mileage. The BVRLA advises that you inspect your vehicle for damage 10 to 12 weeks before it is due to be returned. This should give you enough time to check the vehicle against the condition guidelines and arrange for any necessary repairs to be carried out.

• Be honest– Be as objective as possible and ask a friend to help you by providing an honest opinion
• Choose a good light – The finance provider will inspect your vehicle in natural daylight, so you should do the same to avoid missing faults, dents or scratches that may otherwise be difficult to see.
• Inspect your vehicle when it’s dry– A wet car will make it much harder for you to spot scratches and dents. If the car has just been washed or it has been raining, make sure it’s dried thoroughly before the inspection.
• Ensure your vehicle is clean both inside and out– Water marks and dirt can mask bodywork damage, and all interior upholstery must be stain-free
• Ensure any personalised number plates are removed - Drivers should liaise with the finance provider in plenty of time to ensure that any personalised number plates are transferred from the leased vehicle to a new one before collection.

The average car lease contract length in the UK is three years. A car on a three-year lease typically has an average mileage of around 36,000 miles. After this amount of time and miles, you'd expect the vehicle to have half-worn tyres and half-worn brakes but no chipped or broken glass. You'd also expect the carpet/upholstery in a cleanable state with one or two minor door dents that could be removed with a paintless repair. After three years, there shouldn't be any paint scratches or fading, no tears or burns on the interior, and all equipment should be in working order.

All this is laid out and explained in the lease agreement.

Damage to leased vehicles is typically classified as either acceptable or unacceptable. Acceptable damage includes normal wear and tear that comes with driving, whereas unacceptable damage includes more severe damage.

Typical acceptable damage includes:

• Small light scratches of up to 25mm (except where primer or bare metal is showing)
• Damage to the light lens, but not if the glass has been cracked and there is water ingress
• Scratches to the windscreen that do not obstruct the driver's line of vision
• Light tyre wear, provided tyres meet UK legal requirements
• Light staining to the driver seat area but no rips, holes or tears
• Scuffs up to 25mm on alloy wheels

Please note: These are broad guidelines and what constitutes acceptable and unacceptable damage to a leased vehicle varies by provider. As such, it's always a good idea to read your lease contract's terms and conditions.

What kind of damage is unacceptable on a leased vehicle?

Some of the most common problems that result in customers having to pay lease-end penalty charges include:

• Damage to wheels and trims
• Chips or dents on the bodywork
• Scuffs, scratches and scrapes to the paintwork over 25mm
• Rips, burns or holes in the vehicle’s seats
• Unrepaired impact damage
• Adhesive residue
• Windscreen chips

The BVRLA is the industry standard for determining what is considered wear and tear or damage. However, most finance providers have their own standards. These are detailed at the start of the contract and can usually be found in the leasing agreement terms and conditions.

General appearance and road safety

• Ensure the vehicle’s exterior is sufficiently clean to allow a detailed inspection
• Make sure the vehicle is roadworthy, and no warning lights are illuminated on the dashboard
• All electronic safety features and devices must be in working order
• There must be at least 50 miles of fuel (or residual charge in the battery if an electric vehicle) in the vehicle

Documentation and keys

• All documentation such as the owner’s manual etc. must be in the vehicle on return
• The vehicle service book must be date-stamped by an authorised repairer
• For service records that are held electronically, a printed copy of the maintenance/service record must be retained
• For vehicles older than three years, a valid MOT certificate must be place
• A full set of keys, including master and spares, must be returned with the vehicle
• Any radio and security code cards must be in the vehicle on return

Paintwork, vehicle body, bumpers and trim

• There should be no rust or corrosion on any part of the bodywork or trim of the vehicle
• Small dents of up to 15mm are acceptable, provided there are no more than two per panel and the paint surface is not broken. Dents on the roof are not acceptable
• Scratches and abrasions up to 25mm are acceptable, provided the primer or bare metal is not showing
• All badges, labels or advertising fitted to the bodywork or glass of the vehicle should be removed before collection
• Any difference in paintwork colour noted following the removal of advertising, labelling or logos is not acceptable
• Convertible roofs must be fully operative and free from rips and tears
• A tow bar, if fitted, must be in good, rust-free condition with electrical connections working correctly. A ball cover must be in place.

Windscreen, windows and glass

• Light scratching on the windscreen is acceptable, provided it does not interfere with the driver’s line of sight. Chips, cracks or holes are not acceptable
• Any cracks or chips in the lights which restrict the function of the light must be repaired
• Missing, cracked or damaged door mirrors are not acceptable
• Adjustable and/or heated door mirrors must work correctly
• Panoramic roofs must fully function, with no chips, cracks or holes.
• Windscreen wipers must be present, secure and in good condition, and the washer reservoir must have sufficient liquid

Wheels, tyres and trims

• All tyres, including the spare, must be legal with more than 1.6mm of tread
• Any damage to wheel trims or alloys (for example, caused by kerbing) must be rectified
• Dents and holes on steel rims and the main body of the wheel are not acceptable.
• The spare wheel or tyre mobility set must be on-board and meet legal requirements
• All original wheel caps and locking wheel nuts must be returned

Mechanical condition

• The vehicle must meet the current MOT standard
• No warning lights should be illuminated on the dashboard
• Brake discs or drums caused by excessive wear or metal-to-metal contact from worn-out disc pads are not acceptable
• Engine damage due to running a vehicle with insufficient coolant, oil or broken internal components is not acceptable
• Any significant impact damage to the vehicle’s underside is not acceptable

Vehicle interior

• The interior of the vehicle must be valeted and cleared of rubbish
• All interior fittings (e.g. rear view mirrors) must be present and intact
• All upholstery and trim must be clean and odourless with no visible burns, tears or staining
• Scratches on treads, sills and seals that reflect regular use are acceptable
• Torn or split floor coverings or damage to surrounding trim panels are not acceptable
• Accessories such as parcel shelves, load covers, boot liners, restraining straps and nets must be returned with the vehicle

Equipment and controls

• Any personal items must be removed from the vehicle before return
• Any personal data stored in the vehicle’s satellite navigation or media system must be erased
• All original equipment, accessories and controls (including sat-nav SD cards) must be present and operate correctly
• Any accessories mounted on the dashboard such as mobile phone holders, dash cams, and portable sat-nav units must be removed, and any holes or other damage must be neatly repaired

The most effective method of avoiding penalty charges is to keep on top of the vehicle’s maintenance and appearance throughout your lease period. An accredited servicing outlet should carry out regular maintenance and servicing, and the vehicle service record must be stamped at each service.

Regular cleaning of the interior and exterior will also help ensure the vehicle looks good. Polishing the vehicle exterior around four times a year will help reduce the effects of any stone-chip damage, limit the effects of air-borne contamination (e.g. bird droppings), remove traffic grime and make routine washing easier.

Other standards that you will be expected to followinclude:

• Maintaining the vehicle in accordance with the vehicle manufacturer's guidelines
• Keeping the vehicle in good condition to maintain its performance and preserve its safety features and emission standards
• Following the manufacturer's recommendations regarding fuel and fuel blends, additives such as AdBlue, lubricants and battery recharging (if an electric or hybrid vehicle)
• Reporting any suspected manufacturer's faults identified on any part of the vehicle, its bodywork or trim as soon as possible

For general information and advice on maintenance, view ourVehicle Maintenance Guide.

You must return your lease vehicle in the best condition possible as you are responsible for any damages.

It's always best to repair any damage to your lease vehicle as soon as possible to prevent it from worsening. Most manufacturers use the rule of thumb on scratches. You probably won't be charged if you can cover it with your thumb, but we recommend taking care of any apparent damage, such as larger scratches, before dealing with an inspector.

If your lease vehicle is damaged or involved in an accident, you should contact your insurer to report the incident, even if you're not making a claim. Unless the damage is so severe that the vehicle is written off, your insurer will advise you on how to proceed with the damage repairs.

Do not attempt to repair the damage yourself. You risk invalidating your insurance and incurring a penalty cost because your insurer does not consider you an authorised mechanic.

If you discover any damage that you believe is likely to incur a penalty charge as part of your inspection, you can arrange to correct the damage before the vehicle is returned.

Before doing any maintenance work, you must speak to your finance provider to determine whether its approval is required. Usually, all repair work must be completed to a professional standard by repairers who provide a full warranty on their work.

For small areas of damage such as chips, dents and scratches, a SMART repair (small and medium area repair technique) may be appropriate, provided your finance provider approves. You should use a SMART repair organisation to carry out the repair work. SMART repairers are members of the Vehicle Builders and Repairers Association (VBRA).They are obliged to comply with an OFT-approved Code of Practice which sets high standards for repairs and customer service.

On the collection day, a qualified inspector will complete a full visual inspection of the vehicle and assess its condition.Any damage deemed outside of fair wear and tear will be noted on a condition report, along with the cost of repairing the damage or replacing any missing items. The inspector will ask you to sign the condition report once they have completed their review.

If you disagree with the inspector's report, you will need to note the detail of your disagreement on the document provided. This will not remove or reduce the cost of the damage but will prompt a review process by the finance provider. Here, a damage team will look to see if the damage in the imagery matches the quoted recharge cost and whether the charges will stand.If not, the costs may be removed.

You can read more about end-of-lease charges in our handy De-Hire and Damage Charges guide.

Please remember that in all cases, you or your nominated handover representative will have seen this damage at the point of vehicle handover and thus should have full knowledge of the damage as found and recorded on the inspection sheet.

For more information and advice, consult your finance provider's fair wear and tear guide.

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