PCH (personal contract hire) dominates how we own cars in the UK. According to the BVRLA (British Vehicle Rental & Leasing Association, 64% of new vehicle contracts in 2018 were recorded as PCH – and it’s not hard to understand why.
With flexible contract and mileage terms, ranging from 24 to 60 months, notable choice of vehicles,
fixed monthly repayments, and zero hassle once the contract agreement has expired, it’s no surprise
that motorists across the UK laud PCH as being a highly attractive way of owning a vehicle.
What’s more, at the end of your contract hire agreement, all you need to do is to return the vehicle
to the finance company. There’s no option to buy and you’ll be able to replace the vehicle with a
new one. However, there is one caveat. When you return the vehicle, you need to make sure that it
meets BVRLA Fair Wear and Tear Guidelines. If it doesn’t you may have to pay to fix any issues.
If you’ve leased a vehicle on PCH and it has incurred a dent, scratch or other damage throughout
ownership, it’s paramount that you get these fixed by a reputable garage, like Duffy Mechanics,
before returning the vehicle.
What Happens When I Return My PCH Vehicle?
When you return a PCH vehicle, it will undergo a thorough inspection. This will be completed either
a week before returning the vehicle or on the day of the return depending on the terms and
conditions of the finance company.
It’s important to remember that you’ll be charged the full amount to repair any damage if it’s not
covered by BVRLA Fair Wear and Tear guidelines will be chargeable. Typically, if required, you’re
then given a week to complete any repairs. However, if clear repairs are required the finance
company will send you an invoice for any work completed.
The value of the vehicle after the contract has expired is of little consequence to the finance
company when repairs are factored in. Therefore, you must make sure that your vehicle is in optimal
working condition for its age.
What Damage Is Acceptable Under the BVRLA Fair Wear and Tear Guidelines?
At the start of your leasing contract, your broker will give you documentation that outlines the
industry standard for vehicle wear and tear. It’s important to keep this safe as, not only will you
need it when you return the vehicle but, it acts reference throughout your leasing history.
It’s also good to keep an eye on the condition of your vehicle throughout ownership. Most of us
have a good eye for scratches or dents, especially if they’re distinct, such as a cracked windscreen or
noticeable eight-inch scratch on the paintwork. Remember that if you can see exterior or interior
damage, a vehicle inspector will too.
Fortunately, finance companies do allow for a little leeway and fair wear and tear, so you won’t be
responsible for small scrapes and scratches. If you’re unsure if you’ll be liable to pay for any damage,
this information is listed in the BVRLA Fair Wear and Tear guidelines, but for ease here’s what’s
- Scratches up to 25mm (except where the primer and bare metal is showing)
- Scuffs up to 25mm on alloy wheels
- Scratches that don’t interfere with the driver line of sight
- Tyres that meet UK legal requirements
- Light staining to the driver business seat area
- Damage to the lens (no broken glass)
If in Doubt, Visit Duffy Motors
Getting bumps, scratches or especially dents fixed will save you money. Period. However, what if
you’ve identified damage or faults to your PCH vehicle and are unsure if the damage is covered
under the BVRLA Fair Wear and Tear guidelines? Visit Duffy Motors.
It’s always wise to be proactive and understand your financial obligations when leasing a vehicle.
Neglecting to book your lease vehicle into a garage to assess any damage may result in costing you a
lot more money when a finance company provides you with a quote.
Duffy Motors has an established reputation as one of the premier garages in Manchester, a
reputation that’s been honed over thirty years of superlative service. If you need a garage to resolve
any issues that you’re experiencing with a PCH vehicle, get in touch with us today on 0161 834 4168.