What is Fair Wear and Tear on a car?

What is Fair Wear and Tear?

If your leased car isn’t in perfect condition, don’t panic – here’s what kind of damage is acceptable and what isn’t when you return it.

If you’ve leased a car, or you’ve bought one through a finance deal, part of the contract says that you agree to keep it in good condition. This is because with a PCP or Hire Purchase finance, you don’t own the car until you’ve paid it off – it belongs to the finance company.

Should you return it covered in bumps and scrapes, you can expect a bill to fix it. At the same time though, owning a car for several years is bound to leave it in a lesser condition than when it left the showroom. So how much deterioration is acceptable?

There’s actually a definition for what’s acceptable, and it’s called “fair wear and tear”. This isn’t just a phrase, it’s defined in a set of guidelines published by the British Vehicle Rental and Leasing Association. The Fair Wear and Tear Guide gives the entire industry, and therefore the customer too, standards to understand what’s fine, and what needs to be fixed before the car is returned (or charged for).

You may well have had a copy of the guidelines sent when you got your car, but if not your finance company should be able to supply you with one. Here’s a brief breakdown of what’s acceptable, and what’s not.

Windows and glass

Acceptable

• Chip, as long as they’ve been professionally repaired
• Light scratching OUTSIDE of the driver’s field of vision
• Replacement windscreen and headlights as long as any mounted cameras and sensors used in the car’s safety systems have been recalibrated

Unacceptable

• Scratches and chips within the driver’s field of vision
• Damaged mirrors or light lenses
• Non-functioning heated windscreen

Body

Acceptable

• Small paint chips as long as they’re not rusty
• Small dents as long as the paint isn’t broken
• Light scratches that can be polished out
• Small scuffs and scratches on unpainted trim
• Towballs approved by the finance or leasing company

Unacceptable

• Rust
• Substandard body and paint repairs
• Large dents
• Deep scratches
• Sticker marks
• Broken unpainted trim
• Damage to convertible hood
• Damage to vehicle underside
• Damage to catalytic converter

Wheels and tyres

Acceptable

• Light scratches and scuffs on wheel trims
• Tyres that meet manufacturer specifications and with legal tread depth

Unacceptable

• Damaged or corroded alloy wheels
• Dented wheel rims or wheel trims
• Depleted tyre inflation canister
• Missing spare wheel or tools (where fitted)

Mechanical condition

Acceptable

• Able to pass an MoT test

Unacceptable

• Warning lights on dash
• Worn brake discs
• Faults on engine or gearbox

Interior

Acceptable

• Light scratches or marks on sills or seals

Unacceptable

• Holes, burns or tears on seats, trim or carpets
• Missing elements (eg parcel shelf, nets, adjustable boot floor)
• Faulty media systems

Why is fair wear and tear important?

If you’re signed up to lease a car, or buy one on PCP deal, the monthly payments are based in large part on what the leasing company or finance company thinks the car will be worth at the end of the contract.

In the same way that a high-mileage deal will leave the company with a car worth less than a low-mileage car, a car with dents, scraped alloys and torn upholstery will be worth less than one in good condition. It’s understandable, then, that the company will want this to be compensated for

Quotes for leasing and finance are therefore based on the assumption that the car will be returned in good condition. At the same time, however, it’s recognised that some wear and tear is inevitable during a car’s use, so the guidelines set out what’s reasonable.