What are end of lease charges?

End-of-lease charges or recharges are made to cover the additional cost of devaluation to your car, which is beyond Fair Wear & Tear.

Generally, you are charged for the cost of repairs or replacement of parts and accessories, although repair and/or replacement isn't actually carried out. 

You can be charged for excessive mileage (beyond what your contract allows), not supplying the appropriate service history, worn tires or the wrong tires fitted. Missing spare keys, missing tools or locking wheel-nut key, and missing parcel shelves. 

You may also be charged for damage such as scuffs, scratches, dents, stains and excessive wear to carpet, seats and interior trim.

Leasing cars is generally a good thing, but people can become terrified by the dreaded 'Penalty Recharges' which by its name insinuates you have done something wrong and is a smear against your reputation, and of course an unexpected bill at the end of your lease is never pleasant.

There is also the issue that what the average person deems to be "Fair Wear & Tear" and the leasing industry's opinions on the matter don't necessarily align, can lead to some bitterness. 

However, with a little know-how it is possible to minimize costs, accept the 'penalties' which are cheaper than the retail cost of repair, or even avoid recharges completely

Written by Danny Argent. Last updated 16/06/2022 15:51