Fair Wear and Tear: Avoid Charges When You Hand Back
💡 Key Takeaway
Handing back a PCP or lease car? What counts as fair wear and tear, what lenders charge for, and simple steps to avoid a damage bill at the end.
You've had the car for three or four years, made every payment, and now you're handing it back. 🚗
Then a letter lands a few weeks later with a damage bill on it. It happens more often than it should, and most of the time it's avoidable.
The key is understanding fair wear and tear, and getting ahead of it before the car goes back.
What is fair wear and tear?
Fair wear and tear is the normal, expected deterioration of a car that's been used sensibly and looked after.
Light marks on the bodywork, a bit of wear on the seat bolster, small stone chips on the bonnet. That's everyday life, and you shouldn't be charged for it.
What you can be charged for is damage: dents with broken paint, kerbed wheels, cracked glass, stained upholstery, missing keys or a patchy service history.
When does it apply?
It matters whenever the car goes back to the lender rather than being bought or part-exchanged. That includes:
- Handing back a PCP at the end instead of paying the balloon
- Returning a lease car (PCH or business contract hire)
- Voluntary termination part-way through a PCP or HP agreement
If you pay the final balloon or part-exchange the car, the condition still affects its value, but you won't get a separate damage invoice from the lender.
The standard most lenders use
Most UK lenders base their return standards on the BVRLA Fair Wear and Tear Guide, published by the British Vehicle Rental and Leasing Association.
Your own lender may use its own version, so always check the guide that came with your agreement. As a rough idea, here's how the BVRLA standard is commonly summarised (for example by the AA):
- Scratches: surface scratches of 25mm or less are usually fine, as long as the primer or bare metal isn't showing
- Dents: small dents with unbroken paint are generally acceptable, with limits on size and how many per panel
- Alloy wheels: light scuffs of up to around 50mm on the rim are often accepted, but cracks or buckles are not
- Glass: any chip or crack in the driver's line of sight is usually chargeable
- Tyres: must be at least the legal minimum tread and free from cuts or bulges
💡 Exact measurements vary between lenders, so treat these as a guide, not a guarantee.
What tends to get charged
From what we see, the bills usually come from the same few things:
- Kerbed or scraped alloys
- Dents and scratches that have gone through the paint
- Bumper scuffs from parking
- Interior damage, like burns, rips, pet hair or strong smells
- Missing items: spare key, locking wheel nut, parcel shelf, charging cable on an EV
- Gaps in the service history
Charges for missing keys and services can be surprisingly steep, so they're worth sorting early.
How to avoid a damage bill
You don't need to make the car showroom-perfect. You just need it to look like a car that's been looked after. ✅
- Do your own inspection a couple of months before the end, in daylight, with the guide in hand
- Get small repairs quoted by a local smart-repair specialist. Fixing a kerbed alloy or a bumper scuff is often cheaper than the lender's charge
- Keep the service book up to date and have the paperwork ready
- Find both keys and all the bits that came with the car
- Give it a proper clean, inside and out, before the inspection
- Be there for the collection if you can, and take your own dated photos and video
If you're in Reading or anywhere in Berkshire, there are plenty of mobile smart-repair firms that will come to your home or office.
What if you disagree with a charge?
Ask for the inspection report and photos. Compare each item with the lender's own guide.
If you think a charge is unfair, raise a complaint with the lender in writing. If you're not happy with the final response, you can take it to the Financial Ombudsman Service for free.
Your own photos from collection day will make a huge difference here.
Thinking about what comes next?
The end of an agreement is a good moment to think about your next car, whether that's another PCP, HP or a used car on finance.
At We Finance Your Asset, we compare offers from a panel of lenders to find a deal that suits you. Get in touch whenever you're ready, and we'll help you plan the next step. 👉