Customers should call lessors
in advance
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Customers who decide to lease cars
value the flexibility of these agreements and the generally lower
cost of repayments – this is because a customer is paying for the
use of the car, rather than buying it outright.
Because most leased cars will
eventually be returned to the leasing company which owns them,
customers are expected to return a car in road-worthy
condition.
Lessors will then either lease the
car out on a second agreement or sell it on the used car
market.
Any damage or faults beyond ‘fair
wear and tear’ must be repaired at the expense of the lessee, as
explained in the terms and conditions of an agreement.
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By GlobalDataI think the vast majority of
customers – particularly businesses – understand this principle and
will carry out any necessary repairs.
My advice for all lease customers
would be to contact your leasing company before the end of the
agreement and discuss any existing damage to the car.
If it is likely that you may incur
a charge then you should arrange for a full independent inspection
to be carried out and shop around for the best repair quotes.
Before returning the vehicle, I
would also recommend taking photos of the car so you have a record
of its condition.
Any missed repairs that the leasing
company has to pay for will be carried out at a workshop convenient
for them, so do not expect the very cheapest cost of repair when
you receive the resulting invoice – but the repairs must have been
necessary to ensure the car is of satisfactory quality.
End-of-lease charges will cause
discontent among those customers who have not taken the time to
read the conditions of the agreement they signed up to.
The FLA receives very few
complaints linked to industry practice in this area, as all of our
finance company members adhere to our Lending Code to treat
customers fairly.
However, improved public awareness
would be no bad thing to help protect the industry’s
reputation.
I would welcome better education
and clearer information on excess charges, perhaps a ‘damage
directory’ for customers to take away indicating likely charges if
a car is returned damaged.
The author is head of motor
finance at the Finance and Leasing Association y
