In brief
At the end of a lease, the vehicle is returned to the lessor and its condition is assessed. Deviations from the agreed mileage and damage beyond normal wear are charged separately.
How does a lease return work?
An expert inspects the vehicle, usually on behalf of the lessor, and prepares a report on its condition, equipment, and odometer reading. This determines the final invoice: diminished value for damage, settlement of excess or unused kilometers, and charges for missing items such as a spare key, charging cable, or vehicle documents.
What counts as normal wear?
The contract defines this, usually by referring to an industry standard. Small scratches, minor stone chips, and ordinary wear to the interior are generally considered normal. Dents, paint damage through the finish, damaged upholstery, improper repairs, and damaged rims count as diminished value.
The boundary is open to interpretation, so different inspectors may assess the same damage differently.
What is considered normal wear?
The classification depends on the contract and the assessment standard it names. The following examples reflect common practice and are no substitute for checking your own contract.
| Generally normal wear | Generally diminished value |
|---|---|
| Fine scratches on the paint surface | Dents and bumps |
| Isolated stone chips on the front of the vehicle | Paint damage down to the primer |
| Ordinary wear on seat surfaces | Tears, burn holes, or stains in the upholstery |
| Minor signs of use at the loading edge | Damaged wheel rims |
| Normal tire wear while meeting the minimum tread depth | Improperly performed repairs |
| Complete accessories showing signs of use | Missing spare key, charging cable, or vehicle documents |
How can additional charges be avoided?
By inspecting the vehicle yourself ahead of time. This is not mandatory, but in practice an inspection about two to three months before the return date has proved useful. During that period, minor damage can be repaired for less than it might later be charged, and mileage can still be managed.
A reliable damage history is essential: knowing which damage was reported and repaired during the contract term makes it possible to check the inspector's report. Without this documentation, it is difficult to show that damage listed in the return report had already been settled. Photos from the vehicle handover report taken when the vehicle was received provide the simplest safeguard.
Further reading
Fleet Management Without Excel Spreadsheets
With the AZOWO Mobility Cloud, you can keep track of your vehicles, costs, and obligations all in one place.
Book a free product demo