In the ever-evolving world of fleet management, staying informed about industry trends is critical to ensure the safety and efficiency of your company’s vehicles. Rising fair wear and tear charges are one such trend, which have continued to rise to a new record high for both cars and vans, as reported in the recent FN50 annual report by Fleet News.
Fair wear and tear occurs when normal day-to-day usage causes deterioration to a vehicle. It is not to be confused with damage such as impacts, inappropriate stowing of items, harsh-treatment, negligent acts, or omissions.
As fair wear and tear charges and other costs escalate, it’s time for fleet and health and safety managers to consider proactive measures to mitigate risks and safeguard their drivers.
Car Fair Wear and Tear Charges Soar to Record Highs
The FN50 report reveals that charges for car fair wear and tear have hit a record high, with the average penalty now standing at £370. This represents a 4% increase from last year and a substantial 14% rise over the past five years. Escalating charges underscore the importance for fleet managers to address wear and tear issues promptly.
Van Fair Wear and Tear Charges Hit Unprecedented Levels
The report goes on to delve into the van sector, where fair wear and tear charges have risen by 5% year-on-year, reaching a record high of £589. This marks a £28 increase from 2022 and a substantial 57% surge compared to five years ago, when the average charge stood at £376.
The Diverse Landscape of Fair Wear and Tear Charges
Within the broader context of fair wear and tear charges, there is considerable diversity in the amounts charged by leasing companies, ranging from a minimum of £90 to a maximum of £1,500. One in five respondents reported average charges of £900 or more, while 13% experienced charges below £250. This variability indicates the importance of solutions which address the specific needs of each fleet.
In the face of escalating wear and tear charges, fleets must prioritise proactive measures to enhance vehicle safety and reduce financial liabilities. IAM RoadSmart offers a suite of products designed to address these challenges, providing tailored training or fleet-risk management to meet the unique needs of your fleet.
Don’t let rising charges compromise the safety and efficiency of your fleet. Contact IAM RoadSmart today to find out how we can help your organisation, safeguard your drivers, and optimise your fleet’s performance.