Most end-of-lease charges come down to two things: damage that goes beyond fair wear and tear, and miles over the allowance. Both are predictable. Know the industry standard your car will be judged against, check it 10 to 12 weeks before it goes back, be there when it is collected, and you give yourself the best chance of handing back without a surprise bill.
What "fair wear and tear" actually means
Fair wear and tear is the normal deterioration you would expect from a car used sensibly for its age and mileage. It is not the same as damage. The benchmark most leasing companies use is the industry standard published by the BVRLA, the trade body for vehicle leasing and rental, which was updated for cars in December 2022. That update added requirements for electric cars, including that they are returned fully charged with their charging cables.
Your own agreement is what counts. Some funders use the BVRLA standard word for word and some publish their own return standard, so find the version referred to in your paperwork before you start checking.
Usually acceptable, usually chargeable
| Area | Usually acceptable | Usually chargeable |
|---|---|---|
| Paint scratches | Up to 25mm, relative to age and mileage, with no primer or bare metal showing | Longer scratches, or any that go through to primer or metal |
| Dents | Up to 10mm, no more than two per panel, paint unbroken | Larger dents, broken paint, or any dent on the roof or a swage line |
| Alloy wheels | Scuffs totalling up to 50mm around the rim | Damage to spokes or hub, dents or holes in the rim |
| Tyres | At or above the legal minimum, the manufacturer's specified type and size | Sidewall or tread damage, uneven wear from wrong pressures |
| Windscreen | Light scratching, professional warrantied chip repairs outside the driver's line of sight | Chips, cracks or holes; repairs in the driver's line of sight |
| Interior | Normal wear and soiling from everyday use | Burns, tears, stains, holes in carpets, lingering odours |
| Keys and paperwork | Full set of keys, locking wheel nut key, stamped service history, handbook | Missing keys or gaps in the service record |
| Electric cars | Charging cables present, battery fully charged at collection | Missing or damaged charging cables |
The figures come from the BVRLA's published guide. The standard in your own agreement takes precedence, so treat this as a checklist rather than a ruling on how any single mark will be judged.
Ten to twelve weeks before: your own inspection
- Wash the car and check it in good daylight. The BVRLA suggests doing this 10 to 12 weeks before the return date, clean and dry, walking round every panel, wheel and window.
- Photograph everything. Take dated photos of each panel, each wheel, the windscreen, the interior and the odometer.
- Price any repairs early. For anything outside the standard, get a quote from a reputable repairer and compare it with what a charge might be. Leaving time means you can choose, rather than paying whatever is billed.
- Gather the extras. Spare key, locking wheel nut key, service book or digital service record, handbook and, for an electric car, every charging cable supplied with it.
- Check the mileage. Compare the odometer with your allowance while there is still time to plan.
Excess mileage: the charge you can see coming
If you go over your contracted allowance, the excess is charged at the pence-per-mile rate set out in your agreement. It is one of the easiest charges to forecast: divide the miles left in your allowance by the weeks left on the lease and you will know whether you are on track. If you are running well over mid-contract, ask the funder whether the allowance can be adjusted. Some funders allow this, and it is worth asking early rather than at the end.
Mileage will matter even more for electric cars from April 2028, when the planned pay-per-mile charge is due to start. We explain what is confirmed in pay-per-mile for electric cars from 2028.
On collection day
The BVRLA recommends you are there when the car is collected. Walk round it with the collection agent, agree what is recorded on the condition report and only sign once you are happy it is accurate. Keep a copy. Leave the car with the keys, documents and, for an electric car, the cables and a full battery.
If you receive charges you disagree with
- Expect evidence. Under the BVRLA's guidance for its members, you should be told about any charges within four weeks of the car going back, with a breakdown of how they were calculated and supporting evidence such as photographs.
- Challenge in writing. Set out which items you dispute and why, using your own dated photos and the return standard in your agreement.
- Independent inspection. The BVRLA describes an inspection by an independent qualified engineer agreed by both sides. You pay for it at the outset; if the engineer finds in your favour, the reasonable cost is refunded. Their decision is binding.
- Conciliation. If the leasing company is a BVRLA member and you still cannot agree, the dispute can be referred to the BVRLA's conciliation service.
- Ombudsman. If you leased personally on a regulated agreement, you may also be able to take an unresolved complaint to the Financial Ombudsman Service once the leasing company has issued its final response.
For businesses and company car drivers
Who pays for damage on a company car depends on your company car policy, so check it before the car goes back. For directors running a small fleet, a simple rule helps: book each car's pre-return check at the 12-week point, and keep the photos with the agreement. Across several cars, that one habit is the simplest way to avoid disputes afterwards.
What it means for your next lease
- Set a realistic mileage from the start. An allowance that matches how you actually drive avoids the one charge that is almost entirely predictable.
- Read the return standard before you sign. Knowing how the car will be judged at the end makes the handover straightforward.
- Plan the handover and the next car together. Starting the conversation three months out gives time to line up your next vehicle so there is no gap between the two.
Intelligent Vehicle Finance helps drivers and businesses plan the end of one lease and the start of the next. Call 01752 429950 or request a callback to talk it through.
You can also browse car leasing, business car leasing and electric car leasing.
Sources: BVRLA industry fair wear and tear standard for cars (updated December 2022) and its published guide; BVRLA consumer guidance, "Returning your leased vehicle"; BVRLA Return Ready guidance. Figures describe the industry standard and are not the terms of any specific agreement. Your leasing agreement and its return standard set the terms that apply to your vehicle.
Intelligent Vehicle Finance is a credit broker, not a lender, and receives a commission from the lender or funder when an agreement completes. A trading style of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority (FRN 315268). Subject to status and availability.
Reviewed by Stacey Smith, Brand Director, Intelligent Vehicle Finance. Last updated: October 2026.