Business Contract Hire is a fixed-cost rental agreement. You choose a new vehicle, agree the maximum annual mileage and length of contract, then pay an initial fee followed by monthly rentals to suit your budget. Some agreements even include vehicle maintenance, the cost of which is added to your monthly fee.

If your business is VAT registered, you can re-claim some of the VAT element on rental and maintenance charges, making leasing a cost-effective option for your fleet.

Portrait of mixed race tradesman by a van

At the end of the contract, you must return the vehicle. You will have nothing further to pay if the vehicle is in good condition and has not exceeded the agreed mileage. Otherwise, excess charges may apply.

Therefore, it’s important to keep your car or van in good condition, allowing for fair wear and tear, during your lease. The BVRLA (British Vehicle Rental & Leasing Association) has guides for both cars and commercial vehicles. They explain what fair wear and tear is and what you need to be aware of before end of contract vehicle inspections.

Our team of experts have been involved in shaping these guides and know them inside out. So don’t worry about the jargon - leave it to the experts at Damage Reclaim.

Avoiding end of contract charges

Regular maintenance and best practices in fleet management will help prevent damage through harsh usage. A robust maintenance routine will include vehicle inspections, adherence to the manufacturer’s recommended service intervals, daily checks and scheduled repairs.

Many of these are legal requirements to ensure the vehicle is safe, compliant and roadworthy. They are also critical in making sure that excessive wear and tear is avoided and all damage is dealt with promptly.

Ultimately, a good maintenance system will reduce operating costs and the likelihood of refurbishment charges on the vehicle’s return. Our fleet consultants have pulled together some hints and tips here, but why not let them fine-tune this process?

Lease agreement document with glasses and pen

Fighting against unfair fees

A major unforeseen expense of running a fleet, often hidden from drivers, is ‘wear and tear’ charges. These charges relate to the costs of addressing excessive wear, such as scuffs, dents, scratches and other damage. They are usually applied at the end of a car’s fleet life.

If such damage isn’t fixed, leasing companies claim it can knock hundreds - or even thousands - of pounds from a company car’s resale value. Our experts at Damage Reclaim disagree.

We have the knowledge and expertise to reduce these claims for you. So as well as saving money on your fleet management, you can let your staff focus on the core operation of your business - growing it!.  Simply get in touch to learn how.

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Reducing the cost of over inflated damage invoices


We'll work with you to reduce the cost.