Graham Hill, Car Finance Expert, Reports Claims Regarding The Overcharging Of Lease Companies

Wednesday, 24. March 2010

Manheim, the large auction house and end of lease vehicle inspectors have identified over £12 million of end of lease damage charges over 90,000 inspections during 2009. 38% of the vehicles that were assessed had damage in excess of the British Vehicle Rental and Leasing Association fair wear and tear guidelines resulting in an average charge of £350 per vehicle, up by 14% on 2008. Some of this was blamed on cars having their leases extended during the recession but it was interesting to note a comment made by a ‘spokesman’ at Manheim who pointed out that due to the strength of the used car market last year cars were achieving good prices at auction irrespective of condition and yet the leasing companies still reclaimed damage from the fleets. The most common damage was kerbed alloys, windscreen cracks or chips and scuffed bumpers. MPV’s needed the most remedial work at an average cost of £430. Most other sectors were pretty even with executive cars suffering less damage than other vehicles in lower medium levels. By Graham Hill