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Wear-and-Tear
Also known as: Lease Damage, Vehicle Condition, Usage Deterioration
Wear-and-tear describes the natural deterioration of a vehicle’s interior and exterior condition as it is driven and used over time. In leasing, wear-and-tear is carefully evaluated at the end of the lease to determine if any excess charges should be applied. Normal wear includes minor scratches, small dings, or light upholstery marks, while excessive wear may involve large dents, deep scratches, stained upholstery, cracked glass, or bald tires. Lease agreements typically define acceptable standards for wear-and-tear, and lessees are responsible for repairing or paying for damage beyond these limits. Wear-and-tear assessments protect leasing companies by ensuring vehicles retain adequate resale value after being returned. To avoid costly charges, lessees should maintain vehicles with regular cleaning, timely servicing, and immediate repairs of significant damage. Some leasing companies offer wear-and-tear protection packages, which cover minor damages up to a certain amount. Understanding wear-and-tear policies helps lessees plan for lease-end and minimize unexpected expenses.
Example
Olivia returns her leased SUV after three years. The inspector notes two large dents and heavily worn tires, resulting in $1,200 in wear-and-tear charges. If she had purchased a protection package, these costs would have been covered.