FLEET operators should be on the lookout for inflated end of contract recharges as contract hire companies seek to claw back cash lost on over-optimistic residual value forecasts. AT&T Automotive Services has warned fleets to beware of a sting in the tail at the end of a contract which could leave them facing unexpected bills.

'Fleet managers could be in for a nasty surprise when faced with the cost of bringing vehicles up to scratch before disposal,' said Mark O'Callaghan, AT&T Automotive Services' operations director. 'Some unscrupulous companies may therefore look to recharge as a way to offset losses when it comes to disposing of their clients' vehicles.'

While recharges are clearly justified where cars have suffered unreasonable damage - and fleets which outright purchase their vehicles still pay indirectly for above average damage to a car in terms of a lower residual value - they remain a grey area. The British Vehicle Rental & Leasing Association has sought to clarify this with a fair wear and tear guide, published in association with the RAC, which serves as a valuable defence for fleet managers.