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How to minimize end of contract damage charges

29th October 2020

Whether you are a driver of a lease vehicle or a fleet manager in charge of a large fleet, no one likes to see a bill when a lease vehicle is handed back at the end of its contract.

Here we take a look at what end of contract damage is, and how you can minimise it.

End-of-contract charges cover the loss in sale proceeds if a lease vehicle is returned in a condition that could impact its value when selling it on.

End of contract charges can be a worry, and unfortunately, there have been horror stories about unexpected bills when vehicles are returned. However, with a few simple steps all drivers can keep the costs low or avoid them completely.

End of contract charges can cover a whole variety of things; the most common charges occur for the following:

  • Excess mileage
  • Interior and exterior damage to the vehicle
  • Missing spare keys
  • Missing vehicle service intervals
  • Missing service history documentation

Most of these are avoidable though, as long as you take good care of your lease vehicle and its documentation from the start.

  • Make sure you understand the conditions before signing your lease agreement. Check for things such as mileage costs, service intervals etc, so you know what is required for your vehicle.
  • Check your vehicle regularly - we recommend at least once a week depending on the level of driving you do. Check tyre pressure, lights, body work and interior.
  • Remember your pre-agreed mileage limit- and ensure you stick to it throughout the lease.
  • Service your vehicle on time, and keep the paperwork safe.
  • Before returning your vehicle, we recommend you check the vehicle against the BVRLA Fair, Wear and Tear guidelines. You may choose to make some small repairs yourself before returning your vehicle, for example small dents or scratches or chipped windscreen, this could save you money compared with the standard charges.
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Here at KINTO we want to ensure any end of contract damages are kept to a minimum. Vehicles will be checked using the BVRLA Fair Wear and Tear Policy- you can take a look at our guide for cars heredownload (pdf( (Opens in new window)download (pdf(, and the policy for commercial vehicles heredownload (pdf( (Opens in new window)download (pdf(. Our expert team are here to help, so if you any concerns regarding the return of your vehicles then get in touch today (Opens in new window).