Vehicle Off-hire Charges – Under the Microscope

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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 jus-tifying 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 stand-ards BS10125 which requires investment in certified personnel, specialist equipment and rig-orous 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 ensures from the offset that our vehicles are in the safest condition for driving with all major parts of the engine in perfect working order, it also identifies and records any damage to the vehicle so any new damage can be agreed when the vehicle is returned.

Customers rarely acknowledge how cost-effective damage recharges are however Herd cus-tomers do; Ricardo Pedro, Fast UK Parcel Fleet Manager has praised a 35% saving in dam-age repair costs when returning off hires to Herd. He said, “I find the Herd repair costs to be fair and around much lower than the cost of parts on Audatex, which is great! I’m curious where the lower prices come from?”

Dave Dolan, Herd Group Vehicle Body Repair Manager said “Herd minimise costs on every return by securing favourable terms with our partners, auditing estimates, and cross-checking against previous rentals before issuing charges. Additionally, we actively encourage customers to engage with us and discuss any concerns before we issue an invoice. There have been cases where significant damage led us to move vehicles directly to auction, offering customers a Loss in Value approach. This has, at times, reduced recharges by several thousand pounds.”

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