BVRLA Finally Adds Clarity To End Of Contract Condition
Friday, 6. April 2018
You may not know the British Vehicle Rental and Leasing Association but you may have seen their initials, BVRLA on finance documents or supporting notes when you have taken out contract hire or a PCP. They set the end of contract fair wear and tear condition standards many years ago which most contract hire and PCP providers have subsequently adopted.
The one piece of consistency in the market. They update the rules every 3 years but this time round they have had meetings with several stakeholders in an attempt to bring more clarity to the rules making them easier to understand.
They have also taken into account feedback from their own conciliation service that acts as arbitrator when a customer has a dispute with a lender. Whilst adding greater clarity they have also introduced a rule that invoices for repairs must be sent out within 4 weeks of the car being returned.
The new rules are, in their opinion, fair, easily understood and accessible to a non-expert. They have insisted on improved communication between the lender, the collection company and the customer. They reckon that they have addressed the feeling that many leasing companies see end of lease condition charges as a profit centre.
This has led to some large fleet operators refusing to pay what they consider to be ‘unreasonable charges’. In the case of one company they had invoices going back 2 years. The same company gave as an example a 63 plate Kangoo Van going back with some damage on it.
He received an invoice for £3,100 which the leasing company was reluctant to change even after he pointed out that the van ‘booked at £1,500. He wasn’t prepared to effectively pay for the van twice over. Some companies have a fixed cost menu provided at the start of the contract which can make life easier when considering whether to pay for the repairs yourself or simply send the car back and pay the fixed fees.
I’m hoping to have sight of the new regulations so that I can advise customers at the end of their contracts. The customers who will struggle with this will be those taking out a PCP with the intention of keeping the car at the end of the agreement, only to be told that the car isn’t worth the final balloon so the best thing to do is to hand the car back. Only then do they realise the implications of sending a car back in what they would consider to be of reasonable condition. By Graham Hill
