The cost of wear and tear on PCP vehicles is becoming more critical as used car values come under pressure.
That’s the view of Rupert Pontin, head of valuations at Glass’s who said that damage to cars was becoming more of an issue as the used market became more exacting about vehicle condition
“We have been operating in a market for a number of years where stock has been in short supply. That has meant that trade buyers couldn’t afford to be too choosy about minor vehicle damage.
“However, this is changing. There is more stock around and the choice is growing every day. Increasingly, this means that trade buyers can pass over vehicles that are a little untidy.
“This, in turn, puts pressure on those selling vehicles to ensure that recharges are being enforced for PCP customers,” he said.
But Pontin conceded that dealers looking to flip customers into a new PCP car were unlikely to hammer them wear and tear for fear of losing the deal.
“If a customer is hit for a bill running into several hundred pounds when the car is returned, it doesn’t exactly generate goodwill.”
Pontin added that the situation needed to be managed by the dealer throughout the vehicle’s lease period, highlighting the need for drivers to take care.
“It is up to the dealer to explain to the customer exactly what is expected in terms of fair wear and tear. Plus, every time they see the vehicle – for servicing or tyres – they should highlight any damage that is likely to incur a cost at the end of the PCP. In this way, customer expectations have been controlled.”
Rupert added that the situation did not tend to be as acute for fleet customers because there was a much better idea of what was expected in terms of vehicle condition.
He said: “Fleets have a pretty good idea of what rechargeable damage looks like but private motorists with PCPs are comparatively inexperienced.”
