Features
8 Sep 17

EU-wide Fair Wear & Tear “by 2018”

Everyone does agree that Fair Wear & Tear needs EU-wide guidelines. Europe-wide standards for fair wear and tear is what CARA, the European Car Remarketing Association, has been working to achieve. In close coordination with the European Commission and with Leaseurope, the association has been formulating a single set of guidelines.

 

“The guidelines are ready, and only need a final fine-tuning", says Wolfgang Reinhold, president of CARA. He is convinced that if all stakeholders remain on board, there will be a sign off on them at the General Assembly of CARA on 4 December in Estoril. That would means they will be able to go into effect in 2018, pending the necessary procedures of the European Commission. 
 

“Positive impact”

Fleet suppliers agree on the benefits of Europe-wide standards for fair wear and tear, our survey shows:

* Business Lease points out that “industry standards of any kind are always to the benefit of transparency, and ultimately towards the customer”.

* Free2Move Lease believe that “any harmonisation of the end-of-contract refurbishment costs process at European level between the leasing stakeholders will have a positive impact on our business”. 

* “The end of contract period can deliver unwelcome surprises for fleets, with high repair costs. A new fair wear and tear standard would harmonise processes and expectations”, says Fleet Logistics.

* RCI Bank and Services agrees, “if these standards are fully validated by all stakeholders: OEMs, corporate clients, leasing companies and insurance companies”.

 

“Kiss the car”

* “Such a procedure be recognised by both the lease customer and the remarketing customer”, intones FCA Bank.

* Volkswagen Financial Services applies wear and tear criteria based on market conditions, but “would welcome progression to a general standard for wear and tear, as we consider it as important to have a standard in all markets for all customers and leasing companies”.

* “With return standards missing in many countries, an internationally accepted fair wear and tear standard would bring incredible transparency”, according to Sixt Leasing. But: “The practice could be complicated by the fact that different countries have different damage acceptance levels. For example, in France it is okay to 'kiss' the car in front and behind you when parking. In Germany this would be not acceptable at all”.

* “Good standards play a vital role in the relationship between the leasing company and the customer, whether that customer is the buyer of the second hand-vehicle or the original lessee who is returning the vehicle”, observes LeasePlan.

Authored by: Steven Schoefs