ACFO and BVRLA to work together on wear and tear clarity

Fleet operators’ association ACFO has agreed to work with the British Vehicle Rental and Leasing Association (BVRLA) to improve clarity for drivers over the contentious issue of end-of-contract damage charges.

The issue was discussed at a series of debates held at Company Car in Action (CCIA).

Despite guidance through the BVRLA’s guide on fair wear and tear, many fleets and drivers remain confused about what damage should be charged for by leasing companies, and how much those charges should be.

When asked if ACFO would work with the BVRLA to ensure drivers understand the guidance, Caroline Sandall, deputy chairman of ACFO, said: “We want to work with all industry bodies to try to improve the situation because it’s a constant source of pain for those that operate fleets. My call of action remains the same: that we do need to tackle the cost side of it and understand the costs.

“We need to make sure it is transparent, it is fair and that it is consistent.”

Graham Short, fleet engineer at Anglian Home Improvements, told the debate that end-of-contract charges were one of the most contentious aspects of vehicle leasing.

“I have had numerous run-ins with contract hire providers over the years over what I consider fair wear and tear, and unfair wear and tear,” he said.

He added leasing companies charging for repairs that were not carried out before the vehicle was sold was a source of frustration for fleet operators.

But Ian Hughes, group commercial director at Zenith, said these charges cover the damage done to the vehicle’s residual value and not necessarily the actual cost of the repair.

He ruled out a suggestion that potential end-of contract charges should be treated as part of a vehicle’s wholelife cost and reflected in the monthly rental  sum, meaning there is no charge when the vehicle  is defleeted.

“That wouldn’t stand the test of your procurement exercise when benchmarking the amount, and what is an average amount?” added Hughes.

“What may be an average charge to one customer may not be an average charge to another. There is no way of calculating that in a fair and transparent way.”