Vehicle Off-hire Charges — Under the Microscope

Although it's common knowledge that when vehicles are off-hired the hirer is responsible for paying for any necessary damage repairs when it's returned, many businesses still view these costs as unexpected expenses and have not factored them in their budgets.

No one wants unexpected costs, and paired with the myth that end of hire damage costs are unfairly high or inflated, vehicle rental companies have a big challenge when it comes to justifying repair costs.

The fact is that a variety of variables have contributed to the rise in repair costs, not just the increased cost of materials. Repair costs have risen due to compliance with industry standards BS10125 which requires investment in certified personnel, specialist equipment and rigorous quality control processes. Combined with materials and supply chain challenges and a nationwide skills shortage driving up labour charges, all of which contribute to the overall costs of repairs.

Herd Group have a robust process to manage these challenges by securing suppliers that offer solutions and volume-based pricing models, helping us keep costs as competitive as possible. Ensuring that all repairs are completed to BVRLA fair wear and tear standards, maintaining transparency and fairness for our customers.

The Herd pricing reflects market rates set by trusted repair partners and aligns with industry benchmarks. No profit is made from the damage recharges - our approach is to recover the cost of repairs fairly and accurately, ensuring vehicles remain in a safe and roadworthy condition for future hires.

Detailed pre-delivery inspections ensure from the offset that our vehicles are in the safest condition for driving with all major parts of the engine in perfect working order. This also identifies and records any damage to the vehicle so any new damage can be agreed when the vehicle is returned.

For more information about looking after hired vehicles so that end of hire charges can be avoided, refer to the BVRLA Fair Wear and Tear Guide.