Over the past 10 years or so leasing cars have become more popular and today some 80 odd percent of cars and vans are now leased either to companies or under personal contract-hire schemes to individuals.
As most people, the subject of a lease or contract hire agreement will be aware, the agreement specifies that, when the time comes for the vehicle to be handed back to the finance company, they expect the vehicle to be in much the same condition as when the customer received it.
In the event that the vehicle has minor paintwork damage, or damage to the alloy wheels, the finance company expects those things to be repaired or replaced to the standard the agreement specifies before the vehicle is handed back. The agreement also usually specifies that if the vehicle is handed back with damage, then the finance company is entitle to make a charge to repair such damage and almost always make such charges as they consider appropriate.
Normally such charges that the finance company applies are very costly and excessive when compared to the costs we could charge for such work. An example being, a customer with a BMW with damaged diamond-cut wheels was quoted £170.00 plus VAT per wheel to have them refurbished, whereas we charge only £80.00 per wheel plus VAT.
Another example being a customer with a Peugeot was advised by the agent that the cost of repairing the paintwork was £780.00 plus VAT whereas we charged the customer £280.00 plus VAT, thus saving the customer some £600.00 including VAT.
Therefore if you have a vehicle due to be handed back to the finance company at end of lease or contract hire, it will no doubt be worth your while bringing your vehicle in to ourselves for free no-obligation advice and quotation because the savings can be substantial between what we would charge and what the finance company will charge.
Normally, we are busy bringing cars up to standard for hand-back to the finance company. While we will always try to accommodate the customer to enable their vehicle to be handed back to the finance company in the time the agreement specifies, it is advisable that your bring the vehicle in for an estimate a week or two before the hand-back is due as this will almost certainly guarantee that any work required will be completed in time for hand-back at a time convenient to the customer.