Lease return charges, explained
What a leasing company can charge for when a car or van goes back, what it cannot, and how to dispute a bill. Every figure is sourced, and each guide starts with the answer.
What can be charged
The limits, item by item, with what companies charge and how the ombudsman applies them.
- What counts as fair wear and tear on a lease car?Fair wear and tear is the deterioration that comes from normal use.
- Can a leasing company charge for scuffed alloy wheels?Yes, when the scuffing adds up to more than 50mm around the rim, or when there is any damage to the spokes, face or hub.
- When can a leasing company charge for scratches, dents and stone chips?A scratch is chargeable when it is longer than 25mm, shows primer or bare metal, or is one of more than four on a panel.
- Can I be charged for tyres when I return a lease car?Yes. Every tyre, including a spare, must be at least at the UK legal tread depth and must match the manufacturer's specification for the car.
- Can a leasing company charge for a missing key or missed services?Yes to both. A missing key is charged at the cost of a replacement, even if the company never orders one.
- What glass and interior damage can a leasing company charge for?Glass damage over 10mm in the driver's line of vision, or over 40mm anywhere else the wipers sweep, is chargeable.
- How are excess mileage charges worked out?Take the mileage at return, subtract the total mileage your agreement allows, and multiply the difference by the pence-per-mile rate in the agreement.
- Should I repair damage before returning my lease car?Often yes, but only if the repair meets three conditions: it is done to a professional standard, by a reputable repairer, with a warranty that transfers with the car.
Disputing a bill
The process, the deadlines, the two free dispute services and the arguments that work.
- How do I dispute end of lease charges?Ask for the inspection report and photographs, compare each charge with the fair wear and tear standard named in your agreement, then complain in writing about the lines the evidence does not support.
- Can the Financial Ombudsman Service look at end of lease charges?Yes, if your agreement is regulated, which most personal leases and PCP agreements are.
- How does the BVRLA dispute service work?The BVRLA runs a free dispute service for customers of its members.
- Which arguments work when disputing lease return charges?One argument works far more often than any other: the evidence does not prove the damage is beyond the limit.
- Can I be charged for damage when I hand back a PCP car?Yes. Whether you hand the car back at the end of a PCP or end the agreement early by voluntary termination, the lender can charge for damage beyond fair wear and tear.
- How do I dispute return charges on a business lease or van?Complain in writing to the leasing company first. If it is a BVRLA member and you are not satisfied, use the BVRLA dispute service within twelve months, or agree an independent engineer whose finding binds both sides.
- What should I do before my lease car is collected?Appraise the car against the fair wear and tear standard 10 to 12 weeks before it goes back, repair anything outside it, and photograph every panel, wheel and the odometer on collection day.
Tools and evidence
- Free bill checkEnter the charges on your bill and see which are worth disputing.
- Excess mileage calculatorWork out the charge your agreement supports and compare it with the bill.
- Ombudsman decisions digest23 published decisions summarised: the bill, the outcome and what it shows.
- Guides by leasing companyHow each major company assesses returns and what the ombudsman has decided about its bills.