Leasing Return: Damage or Standard Traces of Usage?
Author: Thorsten Rienth
Commercial or private – vehicle leasing has become increasingly popular in recent years. But differences of opinion often arise at the end of the lease term. Why neutral third parties such as DEKRA are important for both sides.
After returning his leased vehicle, an angry man returns home and vents on the Internet. His car dealer had just charged him 1,456.89 euros, he complains in a car forum - “net”, mind you. “There is a minimal dent on the rear bumper that cannot be seen with the naked eye,” he posts online. Otherwise, he would have returned the vehicle “in an above-average overall condition”. The lessor's perspective is clearly a completely different one. The entire bumper would have to be replaced and painted. An inexpensive “smart repair” is not permitted due to the assistance systems installed in the bumper.
Standard traces of usage covered by leasing rates
Michael Tziatzios, Head of Used Vehicle Management at DEKRA Automobil GmbH, knows such controversies well. “When it comes to the loss of vehicle value during the period of use, differences of opinion often arise at the end of the leasing term.” The crux of the matter, in addition to the “normal” loss in value due to the period of use and mileage: "Which defects are to be considered as damage and therefore reduce the residual value of the vehicle? And which ‘damages’ are considered as normal signs of use and are therefore already covered by the leasing rates?"
The assessment criteria used on the market add to the uncertainty. “Different assessment criteria naturally lead to different results in the end,” says Tziatzios. "Leasing damage catalogs often only provide examples of damage. This makes it difficult for laypersons to correctly assess real damage." However, clear criteria are important to prevent later disputes before they arise.
DEKRA damage catalog: assistance for lessees and lessors
Such clear criteria are set out in the DEKRA damage catalog, for example. On almost 30 pages and with the support of numerous photo examples, it ensures transparency in the return of used vehicles. “With its informative examples, such a catalog helps to precisely assess damage, defects or signs of use. Regardless of whether the vehicle is used commercially or privately - it provides lessees and lessors with a uniform and fair assessment platform," explains DEKRA expert Tziatzios.
It would be possible, of course, for the experts to base the obligatory condition report on a customer-specific damage catalog when the lease is returned. “The important thing is that the applicable catalog was defined when the contract was signed and was also available to both parties.”
When classifying the condition of the vehicle based on the criteria in the underlying catalog, the experts can rely on their in-depth knowledge and qualifications. “Each of our DEKRA experts has undergone comprehensive basic training,” explains Tziatzios. "In addition, there is an annual internal training requirement. We stand for safety and objectivity - and our employees live by this."
In which cases is it worth having the leased vehicle inspected in advance?
Does it make sense to generate a condition report before the vehicle is returned? Tziatzios differentiates: “It depends on the condition of the vehicle.” Without damage or other defects, a preliminary report is unnecessary. “However, if there are defects and the lessee is not sure whether the lessor will still accept them, the condition report makes perfect sense.” A preliminary assessment can also provide valuable assistance with further assessments. “It can help you decide, for example, whether it is worth repairing the vehicle before it is returned - possibly via the partial coverage insurance - or whether it is best to settle the reduced value afterwards.”
However, it's not just small dents or scratches that can cause annoying additional costs when leasing a vehicle. It is also worth paying close attention to the basic equipment supplied during the period of use. “Missing parts can lead to unexpectedly high costs,” says Tziatzios. “For example, if the locking system needs to be replaced due to a lost vehicle key.”
With the DEKRA
vehicle condition report
, you can have a condition report drawn up on your vehicle before returning the lease. DEKRA experts carry out a critical visual inspection of the interior, engine compartment, trunk and bodywork. They also check the underside including the chassis, check the function of equipment parts and carry out a brief road test. The subsequent condition report is largely comparable to a rating, although it only shows the reduced values. DEKRA Fair Return is also available for business customers.