Custom Fleet
Services
A guide to fair wear and tear
for commercial vehicles
Contents
Fair Wear and Tear. What does it mean?. . . . . . . . . . . . . . . . . . . . 3
Exterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Interior. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Ancillary Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
What happens at the end of the lease? . . . . . . . . . . . . . . . . . . . 20
This Guide is published for the information of Custom Fleet clients, as a guide only to the interpretation of “Fair Wear and
Tear” on Commercial asset leasing agreements and should be read in conjunction with any Master Lease Agreement.
Fair Wear and Tear
What does it mean?
At the end of your vehicle’s lease period, it will be assessed for wear and tear. Many customers are
unclear as to what the expression “Fair Wear and Tear” means. This guide will help you understand what is
expected at the end of the lease when it comes to the vehicle condition by outlining:
• What’s fair – acceptable condition.
• What’s not – unacceptable wear and tear.
We have also included useful advice where appropriate under the heading ‘What can you do?’
Avoiding repair costs at lease end
Ensuring your vehicle is maintained within the manufacturer’s guidelines and necessary maintenance is
completed on the body or auxiliary equipment can help eliminate any potential costs when the vehicle is
returned at lease end.
The type of care your vehicle needs will depend on:
• The nature of your business.
• The vehicle’s usage.
Vehicles used for transporting goods or equipment generally require a higher level of care and protection
than those used for lighter duties. Our assessment of “Fair Wear and Tear” takes this into account, but we
also expect you to take reasonable care of the vehicle to avoid unacceptable wear and tear.
On return, the engine and drive train, and all other mechanical components, must be mechanically sound
with output and performance within the manufacturers’ guidelines in respect of the distance or hours
operated.
Any damage on the unit must not exceed the “Fair Wear and Tear” buffer dollar value detailed in the Fleet
Lease Agreement and Guarantee.
Remember that you can also contact a Custom Fleet Representative for advice regarding the care of your
vehicle in a variety of areas including:
• Driver awareness and education.
• Regular maintenance and inspection.
• Specification of the right vehicle for the job.
• Recommended service and repair centres.
3
Exterior
Cabin
The condition of the cabin is often a key indicator as to the level of care
applied to the rest of the vehicle.
What’s fair?
What’s not?
•A few paint chips are
unavoidable in normal use –
such as those caused by stone
chips to the front area.
•Scratches over 100mm in length
that penetrate to bare metal or
primer.
•Isolated minor dents up to 45mm
in diameter where the paintwork
(or other surface) remains
unbroken.
•Multiple minor dents up to 45mm
in a localised area.
•Isolated scratches up to 100mm
long.
•Scratching below loading doors
is acceptable if they result from
normal loading practices.
•Scratching below driver and
passenger doors is acceptable
if resulting from normal cab entry
or exit.
•Any dent over 45mm in diameter.
•Any minor dent that includes
scratching through the surface of
the paint.
•Any substandard repair work that
fails to meet industry standards.
•Damage resulting from the
removal of any auxiliary
equipment or options.
7 Any dent over 45mm in diameter
•Dents on the cab roof.
•Missing or broken cab steps or
step pads.
•Cab damage caused by tilting
the cab into the bull bar.
•Change of colour, unless
otherwise agreed to by
Custom Fleet.
•Combined damage exceeds the
“Fair Wear and Tear” buffer dollar
value detailed in the Fleet Lease
Agreement and Guarantee.
7Multiple minor dents up to 45mm in a
localised area
What can you do?
Custom Fleet recommends that you:
•Monitor the condition of the vehicles, at least on an annual basis.
Custom Fleet can provide inspection sheets if required.
•Ensure any necessary repairs are carried out to industry standards.
•Ensure vehicles do not carry inappropriate loads or goods.
•Ensure you do not operate vehicles outside of the manufacturers’
specification and design parameters.
7Missing or broken cab steps or
step pads
4
Exterior
Bumpers, rear steps, under run bars
Bumpers are the most exposed part of the vehicle.
What’s fair?
What’s not?
•Scratches or scuffs, so long as
the bumper/step is not cracked
or deformed.
Any bumper that:
•Dents up to 50mm in diameter,
provided the bumper/step retains
its shape and rigidity.
•Has incurred substantial
damages and no longer retains
rigidity.
•Is incomplete, cracked, twisted
or misaligned.
7Substantial damage and no longer
retains rigidity
•Has a dent over 50mm in
diameter.
7 Dent over 50mm in diameter
What can you do?
Custom Fleet recommends that you install:
7Incomplete, cracked, twisted
or misaligned
• Appropriate protection bars.
• Peeper windows.
• Fisheye mirrors.
• Reversing sensors.
• Docking rubbers.
• Reversing camera.
7 Dent over 50mm in diameter
5
Exterior
Chassis
The chassis on commercial vehicles can be exposed to adverse conditions.
What’s fair?
What’s not?
• Minor scratches and dents.
•Significant damage including
cracked, twisted or bent chassis
rails.
•Scratches and chipping of
paintwork to exposed areas of
chassis such as wheel arches.
•Minor rust to chassis flange and
body contact areas.
• Extensive undercarriage rust.
•Modification without an
engineer’s certificate and
Custom Fleet authorisation.
•Corrosion to chassis rails, cross
members and components other
than minor surface rust.
7Extensive undercarriage rust
What can you do?
Custom Fleet recommends that you:
•Install belly plates for any vehicles driven off road or on
construction sites.
•Apply anti-corrosion treatment to the chassis and driveline
where applicable.
6
Exterior
Wheels, tyres, mud guards and tools
What’s fair?
What’s not?
• Minor scuffing to mudguards.
•Significant damage to wheel rims
including spares.
•Scratches and scuffs to wheel
trims and rims.
•All tyres, including the spare
tyre, must have at least 5mm
of original tread across the
tread area of the tyre.
• Missing tools and jack.
•Any damage to:
– Tyre sidewalls.
–Mudguards.
•Tyres that do not comply
with the manufacturer’s
recommendations or would be
unacceptable in a Roadworthy
Certificate test.
• Damaged rims.
• Recap tyres fitted to a steer axle.
•Installation of a cross-ply tyre
where the original fitting was a
radial-ply tyre.
What can you do?
7Any damage to mudguards
7 Bald Tyre
Custom Fleet recommends that:
• Tyre pressure decals are fitted to wheel arches.
•Tyres are regularly inspected and tyre pressures inflated to the
correct pressure as per the manufacturers’ recommendation.
7 Damage to tyre sidewalls
7
Exterior
Glass, lamps and mirrors
Ensuring the vehicle’s glass, lamps and mirrors remain in roadworthy
condition is essential for its safe operation.
What’s fair?
What’s not?
•Light scratching and minor
chipping of windscreen or
window glass.
•Any damage
–To windscreen glass within the
driver’s line of sight.
–That affects heating elements
on a rear screen.
–To mirror glass, surround,
framework, or support.
•Light scratching of lamp glass
provided the glass remains
watertight.
7 Windscreen crack in driver’s line of sight
•Scratches, abrasion or chemical
residue damage that would not
meet the requirements of a
roadworthy test.
•Any hole or crack in a head lamp
glass or light lens.
•Missing tail light assemblies
including on the cab chassis.
•Combined damage exceeds the
“Fair Wear and Tear” buffer dollar
value detailed in the Fleet Lease
Agreement and Guarantee.
7 Broken side mirror
What can you do?
Custom Fleet recommends the fitting of:
7 Broken headlight or tail light
• Headlight protectors.
• Windscreen stoneguards.
• Rear tail lamp guards.
7 Missing tail light assemblies
8
Exterior
Livery and accessories
Damage caused by the removal of auxiliary items, accessories or livery
affect the future value of the vehicle.
What’s fair?
What’s not?
•Livery must be removed from
your vehicle at the end of the
lease.
•Damage caused by:
– Incorrectly fitted accessories.
– The removal of accessories.
– The removal of livery.
•Removal of accessories included
in the lease unless approved by
Custom Fleet.
•Holes in the cab roof.
7Damage caused by the removal
of signwriting
What can you do?
Custom Fleet recommends that you:
•Check that all accessories supplied with the vehicle are present
before it is returned.
•Take extra care when removing signwriting and accessories.
•Have signwriting professionally removed.
•Fit two-way aerials to gutter mounts or other suitable locations;
drilling holes in the roof for aerials should always be avoided.
If you require more detailed advice on any of these steps,
please call your Custom Fleet representative.
9
7Removal of any accessory supplied
with the vehicle or included in the lease
Exterior
Load area, floor, bulkhead
and wheel arches
What’s fair?
What’s not?
•Unavoidable worn paint surfaces
on load areas.
•Dents over 50mm in depth
caused by collision or impact
damage.
•Dents less than 50mm in depth
as long as the shape of the
floor and wheel arch areas are
unaffected.
•Light residues of substances
such as soil, dust or cement
which can be readily removed.
• Piercing of interior panels.
• Bent or distorted panels.
•Excessive residues that can’t
be removed.
•Corrosion.
7 Damage to wheel arches
What can you do?
7 Punctured load area
Custom Fleet recommends that you:
• Ensure vehicles only carry appropriate loads.
• Install internal linings, shoring bars and tie rails if required.
• Fully secure loads to prevent movement.
If you require more detailed advice, please call your Custom Fleet
representative.
7 Bent or distorted panels
10
Exterior
Fuel tanks, exhaust stacks
and walkways
What’s fair?
What’s not?
•Minor scuffing and dents on fuel
tanks up to 50mm.
•Walkways that are rusted,
insecure or structurally unstable.
•Damaged, rusting, pierced or
dented fuel tanks.
•Damaged exhaust stacks and
missing components.
•Corrosion.
If you require more detailed advice, please call your Custom Fleet
representative.
7 Dented fuel tank
11
Interior
Seating
The seating on commercial vehicles can incur significant wear and tear.
What’s fair?
What’s not?
•Light staining or discolouring
of the fabric is generally
acceptable, provided the texture
of the fabric is not permanently
damaged.
•Permanent damage caused by
stains such as tar, oil, grease
or paint.
•Seats that can be easily cleaned.
•Cuts, rips or tears caused by
carrying tools, inappropriate
goods, unsuitable clothing
or keys.
•Burns, whether caused by
cigarettes or corrosive material.
•Any damage to the seat
structure.
•Mismatched seat trim.
7Cuts, rips or tears
What can you do?
Custom Fleet recommends that you:
•Fit heavy-duty seat covers if a driver’s clothing is likely to be soiled
or stained during the working day.
•Do not use additional seating for storage of tools and materials,
particularly in dual cab vehicles.
Please contact Custom Fleet if you would like us to supply heavy-duty
seat covers.
7Burns, whether caused by cigarettes
or corrosive material
12
Interior
Dash, fascia and trim
Untidy holes, wiring left over from removed after-market accessories or
damaged trim have serious implications regarding the value of your vehicle.
What’s fair?
What’s not?
•Light scratches that can be seen
but not felt up to 50mm.
•Moderate to heavy scratches
over 50mm long.
•Neat, isolated small holes
caused by the fitting of mobile
phone kits or two-way radios.
•Multiple scratches under
50mm long.
•Cuts, dents and tears.
7Removal of any accessory supplied
with the vehicle or included in the lease
•Burn marks.
•Permanent staining.
•Removal of any accessory
supplied with the vehicle or
included in the lease.
•Untidy holes, wiring left over
from removed after-market
accessories or damaged trim.
•Broken or missing fascia, trims
or panels.
What can you do?
7Untidy holes and wiring left after the
removal of after-market accessories
Custom Fleet recommends that you:
• Professionally fit and remove all options and accessories.
•Rectify any resulting damage caused when removing any
accessories you’ve had fitted to the vehicle.
7Permanent staining
13
Interior
Floor
What’s fair?
What’s not?
•Minor marks to floors are
acceptable so long as the marks
can be removed.
•Excessive wear and tear to
floor covering including holes
and tears.
• Permanent stains.
7Excessive wear and tear to floor
covering including holes and tears
What can you do?
Custom Fleet recommends that you:
•Protect floors with commercial floor mats, which should be
replaced regularly.
•Regularly clean floor coverings to prevent build-up of damaging
substances.
14
Bodies
Bodywork (excluding cab)
What’s fair?
What’s not?
•Isolated small dents and
scratches no larger than 50mm.
•Dents and scratches greater
than 50mm.
•Minor paintwork damage.
•Damage resulting in pierced
bodywork or headboard.
7 Dents and scratches over 50mm
•Roller coasting damage to floors.
•Curtains that are ripped, torn or
poorly repaired.
•Damaged tailgates or drop sides.
•Holes in the tray floor.
•Bent or broken tie rails.
•Rear “under-run” damage.
What can you do?
7Curtains that are ripped, torn or poorly
repaired
Custom Fleet recommends that you undertake:
• Regular inspections of the vehicle.
•Preventative maintenance as wear occurs rather than letting it build
up over the life of the vehicle.
7Scratches over 50mm in length that
penetrate to bare metal or primer
15
Bodies
Bodywork (excluding cab)
Fibreglass bodywork offers many advantages including weight saving and
efficiency, but maintaining it in sound condition requires special vigilance.
What’s fair?
What’s not?
•Minor scratches to the exterior
paintwork up to 50mm.
•Dents over 50mm diameter.
•Dents under 50mm in diameter,
so long as the fibreglass is not
broken.
•Cluster damage under 50mm.
•Doors that do not open or close
properly.
•Damage that lets water penetrate
the load area.
•Damage that lets water penetrate
the fibreglass bodywork.
• Exposed fiberglass matting.
• Cracks in fiberglass.
7Cracks in fiberglass
What can you do?
Custom Fleet recommends that you:
•Immediately repair any damage that allows water seepage,
especially refrigerated vehicles, as damage may affect the
efficiency of the refrigeration unit.
7Damage that lets water penetrate the
load area
•Install rear dock buffers to prevent damage to doors and bumpers.
•Apply a windscreen decal noting vehicle height.
• Implement a defined body inspection regime.
• Advise your drivers that they should:
–Ensure loads are properly restrained.
–Keep a close eye on other people loading goods to avoid
panel damage.
–Ensure vehicles are never overloaded.
7Extensive damage
16
Bodies
Shutters and doors
Shutters and doors are in constant use. It is essential that they operate
properly when the vehicle is returned.
What’s fair?
What’s not?
•Minor scratches and dents up
to 50mm.
•Broken door catches, hinges
or locks.
•The opening mechanism and
door operate normally without
requiring excessive force.
•Dents on roller doors up to
50mm.
7 Puncture in door
•Doors that require extra force
to open or close.
• Misaligned doors.
What can you do?
Custom Fleet recommends that you:
• Secure doors when moving the vehicle.
• Install reversing sensors.
• Install a reversing camera.
17
7 Broken door catches, hinges or locks
Ancillary Equipment
Ancillary equipment
This includes cranes, power take off, turntables, air and electrical lines,
fridge units and tool boxes.
What’s fair?
What’s not?
•All equipment must be in full
working order and operate to the
manufacturer’s specifications.
•Equipment that is damaged.
•Minor scratches and chips.
•Missing components.
•Failure to return any equipment
supplied with the vehicle.
•Impact damage.
•Missing air and electrical coils.
•Corrosion.
What can you do?
•Where applicable/required supply
copies of inspection certificates
and maintenance records.
Custom Fleet recommends full training and accreditation of operators
of ancillary equipment.
Platforms
What’s fair?
What’s not?
•Minor scratches, chips and dents
up to 50mm.
•Failure to return any equipment
supplied with the vehicle.
•Leaking hydraulics and damaged
or kinked cables.
•Incorrect or inferior replacement
batteries.
•Forklift damage.
What can you do?
•Impact damage to the platform.
Custom Fleet recommends that you:
•Ensure all operators are fully trained and, if required, certified in
operating all ancillary equipment.
•Correctly store tail-lifts, cranes and other equipment when the
vehicle is moving.
•Regularly inspect and service equipment as per the manufacturers’
recommendations.
18
7 Broken tool box
Ancillary Equipment
Hydraulically operated equipment
What’s fair?
What’s not?
•Operates within the
manufacturer’s specifications.
•Unit will not operate within the
manufacturer’s specifications.
•Damage to the unit, including
rams, booms, controls.
•Leaking hydraulics or kinked
cables.
•Excessively worn pumps.
•Incorrect or inferior replacement
batteries.
•Missing inspection certificates/
maintenance history if applicable.
Refrigeration units
What’s not fair?
•Unit will not operate within the manufacturer’s specifications.
•Refrigerant that is not compliant with current environmental laws.
•Missing electric standby leads.
•Cargo contamination.
What can you do?
Custom Fleet recommends that you:
•Service hydraulic and refrigeration units as per the manufacturers’
recommendations.
•Ensure all operators are fully trained and certified in operating
the equipment.
19
What happens at the end of the lease?
Vehicle inspection
When your vehicle is returned to Custom Fleet, a comprehensive inspection report is completed which
assesses the vehicle’s condition. This report covers but is not limited to the areas covered in this guide.
Your obligation to return all equipment and accessories
When the vehicle is returned, you are obliged under the terms of the agreement to include the service
books, spare tyre and jack, tools and badges.
All keys and remotes must be returned.
All accessories supplied with the vehicle must also be returned.
Evidence of routine maintenance
One of the key factors in ensuring a vehicle meets the standards required for “Fair Wear and Tear” is the
standard of routine maintenance adhered to throughout its life.
We ask that you return service records for the vehicle detailing its maintenance regime and manufacturer’s
log books and handbooks, or evidence of the units maintenance history.
At the end of the day
Our aim is to help you ensure that your vehicle is returned with minimal damage at the end of the lease
period. This should be achievable by regular cleaning and vehicle inspections as well as repairing any
damage prior to returning the vehicle at lease end.
Please contact Custom Fleet if we can be of any assistance in helping you manage your fleet’s whole of
life costs.
1800 812 681
www.customfleet.com.au
20
1800 812 681
www.customfleet.com.au
© 2015 Custom Fleet Pty Ltd ABN 69 005 093 701. All rights reserved.
201501