Almost a third of fleet managers still fail to check the condition of their end-of-contract vehicles, acording to an exclusive Fleet News survey.

It found that 28% of fleet managers fail to carry out end-of-contract damage checks before returning them to their supplier.

This is despite lease companies becoming increasingly strict on invoicing for all damage above fair wear and tear.

“In previous years members have been more lenient on this issue, mainly because they were happy to share the benefits of a buoyant used car market with their customers,” explained John Lewis, chief executive of the BVRLA, which represents the country’s lease providers.

“However, with the economy in recession and residual values less certain, they are having to apply these refurbishment charges in order to optimise the disposal value of their vehicles.”

Fair wear and tear

In its fair wear and tear guide, the BVRLA recommends that fleet managers carry out a damage appraisal at least 12 weeks before the vehicle is due back.

"This will allow you to arrange to have any unacceptable wear and tear rectified," it says.

With such a zero-tolerance approach from suppliers, fleet managers should have a defleet policy that involves checking vehicles’ condition before they are returned.

However, many fleets are failing to do this.

Trevor Pinhorne, transport administrator at the Ordnance Survey, which has a fleet of 400 leased cars, explained why he does not yet have such a policy.

“With vehicles all over the country it is impossible to check them all,” he said.

“However drivers are made aware of the fair wear and tear policy we have with the lease company.”

He said issuing drivers with the policy has helped reduce damage recharges.

“However we have seen an increase in the number of damage recharges.”

These charges average £300 per car, which are paid by Ordnance Survey.

“However it is down to their managers’ discretion to charge the driver if the cost is very high through neglect or misuse,” said Pinhorne.

“Drivers are advised to check for damage and get it repaired before the car is returned.”

Rob Bowen, business services manager at Equity Insurance Group, also does not check vehicles before they are de-fleeted.

“We have a trustworthy relationship with our lease car provider,” he said.

Drivers within the 75-vehicle fleet are asked to be present when their vehicle is returned, but they are not charged for any damage identified by the lease company.

The average charge is £250.

“Any charges are absorbed by the company although this would be reviewed if we had persistent offenders,” said Bowen.

ACFO recommendation

ACFO recommends that all fleets should have a damage check policy.

"We strongly recommend that all our members have a policy in place to check vehicles for damage before they are returned to the lease company,” said the association’s chairman Julie Jenner.

“We know of several cases where damage has been mistakenly recorded by the company authorised to collect the vehicle and subsequently fleet customers have been re-charged by the leasing company for that damage.

"To minimise the risk of this happening and to ensure charges are only received for genuine repairs, it is imperative that fleet managers carry out these checks themselves.”

ACFO member Ann Dukanovic, fleet manager at Kaba Door Systems said: “We have a pre-return appraisal which has to be completed by driver and their line manager.

"I find this stops all the 'discussions' as to what damage was and was not on the vehicle when handed back.”

Charge company car drivers

Damage that is clearly the driver’s fault - cigarette burns, damaged alloys, stained seats, cigarette lighter missing – is charged to the driver.

Other damage is decided on a case-by-case basis and a decision taken whether to repair the car before it is returned.

“We have a monthly check sheet which covers under the bonnet and general vehicle condition.

"On here drivers have a section to complete for 'driver’s concerns', and one for condition,” explains Dukanovic.

“This then has to be signed off by the driver’s line manager to confirm all details and to ensure that any areas of concern or damage is rectified without delay.

"It is impossible to see the vehicles every day, but where controls can be implemented they should be.”