What is Fair Wear and Tear for a Leased Company Car? - Amt Auto

What is Fair Wear and Tear for a Leased Company Car?


Fair wear and tear is essentially the natural deterioration that occurs to a vehicle over time due to normal usage. This can include minor scratches, dents, or other imperfections that are considered reasonable given the vehicle’s age and mileage. It’s important to distinguish between this normal wear and tear and damage caused by accidents, neglect, or misuse, as the latter may incur additional charges when returning the leased vehicle.

To determine what constitutes fair wear and tear, leasing companies often provide guidelines or standards that outline acceptable levels of wear for different parts of the vehicle. These standards are typically based on industry best practices and may vary slightly between leasing companies. Additionally, organisations such as the BVRLA offer industry-standard guidelines to help both lessors and lessees understand what is considered fair wear and tear.

When preparing to return a leased company car, lessees should take proactive steps to assess the vehicle’s condition and address any issues that may fall outside the fair wear and tear guidelines.


This process usually involves:

 1. Obtaining the wear-and-tear guide from the leasing company: This document outlines the specific criteria and expectations for assessing the vehicle’s condition upon return. This document should be shared as part of the welcome pack from the leasing company. If you haven’t got it ask for it as it may differ depending on the leasing company providing the vehicle.

 2. Conducting a thorough inspection: Lessees should inspect the vehicle at least three months before the end of the lease term to identify any damage or wear that may need attention. This includes checking the exterior for scratches, dents, and paint damage, as well as examining the interior for upholstery damage or excessive wear.

 3. Addressing necessary repairs: Any damage or wear that exceeds the fair wear and tear guidelines should be repaired before returning the vehicle. This may involve repairing scratches, dents, or upholstery damage, or replacing worn-out components such as tires or brakes.

 4. Gathering documentation: Lessees should collect all relevant paperwork, including service records and maintenance receipts, to demonstrate that the vehicle has been properly maintained throughout the lease term.


As well as preparing the vehicle for return it is also a driver’s duty to make sure their fleet vehicle is kept in roadworthy condition at all times.

A leasing company is only responsible for maintenance of the vehicle if a maintenance package is taken out. Whilst the company is responsible for servicing and repairs, the individual using the vehicle is tasked with ensuring that the tyres are in good condition and properly inflated, and that essential fluids like oil, coolant, and windshield washer fluid are maintained at appropriate levels. If a driver notices any issues with their vehicle, it is their responsibility to promptly report them for resolution.

Employees should familiarise themselves with the welcome pack provided by the leasing company and make sure that you have saved the relevant support numbers in your phone, as you never know when you might need them. The last thing you want to worry about is trying to dig out the contracts if any abnormal occurrences involving the vehicle arise, such as accidents, vandalism, or theft.

Additionally, in the event that a driver is stopped and charged with a driving offence, such as speeding or driving under the influence of alcohol or drugs, they are required to inform their employer without delay.

By taking these proactive steps, lessees can minimise the risk of incurring additional charges for excessive wear and tear when returning a leased company car. Additionally, maintaining regular maintenance and addressing minor issues promptly can help preserve the vehicle’s condition and ensure a smooth return process.

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