Sunday, June 26, 2022

For Fleet and Transport Professionals

Five point plan to avoid end of lease contract charges

DMN Logistics has launched a five-point plan to help drivers avoid any end-of-contract charges when returning their Personal Contract Purchase (PCP) or Personal Contract Hire (PCH) car to the leasing company.

DMN completes thousands of personal leasing end of contract inspections and collections each year and has seen drivers charged up to £1,000 by making basic mistakes at the end of their contract.

With more than 90% of new, private vehicles purchased on a personal lease according to the Finance and Leasing Association (FLA), DMN is encouraging drivers to focus on key things that will help them avoid paying penalties when they hand their car back to the leasing provider.

Spare keys
Vehicle owners typically put the spare key in a ‘safe place’ never to be seen again. Ensure you have the spare key ready before hand-back. A missing spare key can incur a charge from £250 upwards.

Make sure your car is clean
End-of-contract inspections are now being aborted due to the car not being clean. A charge of £45 is commonplace so ensure that the car is returned in a clean condition.

Updated service book
If the car has a service book ensure it’s in the car, check the service schedule is up-to-date and the dealer stamp is in place prior to any inspection. Penalty costs start at a few hundred pounds.

Tyre inflation kit readiness
An increasing number of cars now include a tyre inflation kit rather than a spare wheel. Make sure it’s replaced if used or face a charge of up to £120 for a full kit including the compressor.

Parcel shelf installation
That weekend adventure or trip to the household waste recycling centre often results in failure to refit the parcel shelf. Doing so can cost upwards of £100 on hand-back.

“Experience tells us people often neglect the same things when it comes to end of vehicle contracts which can often end up costing them unnecessarily,” explained Nick Chadaway, managing director of DMN.

“It’s these small details which, potentially, can add up to costly outlays. With a little bit of foresight and planning, these pitfalls can be easily avoided, saving drivers both money, time and stress.”

DMN is advising personal leasing customers to inspect their vehicle about eight weeks from its contract end to check for any potential additional costs and allow time to make an informed decision on a course of action.

The BVRLA Fair Wear and Tear guide is particularly useful to help drivers understand the condition that their PCP or PCH car needs to be handed back to the leasing provider without incurring any costs.

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