TOYOTA Finance Full Service Lease Fair Wear and Tear User Guide

June 1, 2024
Toyota

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TOYOTA Finance Full Service Lease Fair Wear and Tear

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PRODUCT

Product Information

  • Specifications
    • Product Name: Toyota Full-Service Lease Fair Wear and Tear Guide
    • Manufacturer: Toyota Finance Australia
    • Website: ToyotaFull-Service Lease

The Toyota Full-Service Lease Fair Wear and Tear Guide is a document used by Toyota Finance Australia to determine the condition of a leased vehicle at the end of the lease period. It outlines the standards for fair wear and tear, which impact the return process and potential costs associated with any damages or excess kilometres.

Product Usage Instructions

  • Understanding Fair Wear and Tear
    • Fair wear and tear refers to the reasonable deterioration in the repair, working order, and appearance of the vehicle that is consistent with normal use and maintenance obligations.
  • Relevance to Toyota Full-Service Lease Contract
    • The lease payments are based on the assumption that the vehicle will be returned in good working order, with fair wear and tear considered. Failure to meet these standards may result in additional costs.
  • Assessment Process
    • Before the lease expires, Toyota Finance will contact you to discuss the return process. An assessment will be conducted based on the vehicle’s condition and mileage to determine any excess charges.
  • Returning the Vehicle
    • If the vehicle meets the Fair Wear and Tear Guide and has not exceeded the agreed-upon mileage, you can simply return it at the end of the lease.
  • Non-Compliance
    • If the vehicle does not meet the standards, you will be notified and given the option to repair damages or pay for necessary repairs to restore the vehicle.
  • Avoiding Costs
    • Maintain the vehicle in good condition and follow recommended servicing schedules.
    • Avoid exceeding the agreed-upon mileage to prevent excess charges.
  • Tips for Compliance
    • Refer to examples provided in the Fair Wear and Tear Guide for a better understanding of acceptable wear and tear.

FAQs

  • What is fair wear and tear?
    • Fair wear and tear refers to the reasonable deterioration in the repair, working order, and appearance of a vehicle consistent with normal use.
  • How can I avoid fair wear and tear costs?
    • To avoid costs, maintain your vehicle properly, follow recommended servicing schedules, and ensure you do not exceed the agreed-upon mileage.
  • What happens if my vehicle does not meet the Fair Wear and Tear Guide?
    • If your vehicle does not meet the standards, you will be notified and given options to address any excess wear and tear, either through repairs or payment for restoration.

IMPORTANT NOTICE

This Fair Wear and Tear Guide (the Guide) will be used by Toyota Finance Australia (TFA) when you return your vehicle at the end of your lease. It is to be read with your Full-Service Lease contract. You must be familiar with this Guide. It provides a basis for determining what is reasonable fair wear and tear for a vehicle at the end of your lease, based on the lease period and agreed a number of kilometres (contracted km per annum) as set out in your Toyota Full-Service Lease contract.

  • What is fair wear and tear?
    • Fair wear and tear means the deterioration in the repair, working order and appearance of your vehicle as is reasonably consistent with your obligations to use and maintain your vehicle, following:
    • Your Toyota Full-Service Lease contract, requires you keep your vehicle in good order and repair.
    • This Guide, defines acceptable damage and wear, along with examples of what Toyota Finance will not accept as fair wear and tear.
  • Why is fair wear and tear relevant to my Toyota Full-Service Lease contract?
    • Toyota Finance has based the payments for your Full-Service Lease on your vehicle being returned in good and proper working order (fair wear and tear excepted).
    • It is also based on the number of kilometres that your vehicle will travel over the contract term, i.e. the contracted km per annum.
    • If your vehicle is not returned to Toyota Finance in an acceptable condition, you will be required to pay for the cost of any repairs or excess kilometres.
  • When will the assessment of fair wear and tear be made?
    • Before the expiry date of your contract, Toyota Finance will contact you to ask what you intend to do at the end of your Full-Service Lease and how to get your vehicle assessed.
    • Toyota Finance’s assessment will be based on the condition of your vehicle at that time and whether it meets this Guide.
    • Toyota Finance will also check the odometer to determine whether an Excess kilometre charge will apply.
    • What happens if the vehicle meets this
  • Fair Wear and Tear Guide?
    • If your vehicle meets this guide and has not travelled more kilometres than agreed, you can simply return the vehicle at the end of your lease.
  • What happens if the vehicle does not meet the Fair Wear and Tear Guide?
    • Where the vehicle does not meet this Guide, you will be notified and allowed to either repair any excess fair wear and tear or be charged the cost of repairing or restoring the vehicle to the condition it ought to have been at the end of the lease term.
  • How do you avoid a fair wear and tear cost?
    • Keep your vehicle in good order and repair, and ensure that it is regularly serviced by the recommendations set out in the Toyota Service and Warranty Handbook.
    • Ensure that your vehicle does not travel more than the agreed kilometres. Lack of regular servicing and attention to preventative measures, plus misuse or neglect, are the main reasons for vehicles not meeting this Guide.
  • Some tips to ensure that your vehicle meets the Fair Wear and Tear Guide
    • Ensure your vehicle is regularly serviced by Toyota’s recommendations – refer to your Toyota Service and Warranty Booklets.
    • Regularly clean your vehicle inside and out, including the upholstery and trim.
    • Regularly check fluid levels and top them up when needed.
    • Immediately investigate any unusual mechanical noises or poor running symptoms
    • and refer to your Toyota Dealer for assistance.
    • Fix any damage or defects when they occur.
    • Ensure that all controls are working.
    • Regularly inspect your tyres and wheels to ensure that they are in good condition and safe.
    • Do not exceed Toyota’s towing guidelines for your vehicle.

Examples of fair wear and tear are provided on the following pages.

TOYOTA FULL-SERVICE

TOYOTA FULL-SERVICE LEASE FAIR WEAR AND TEAR GUIDE

This Guide explains what is meant by fair wear and tear and is the standard by which your vehicle will be assessed when returned to Toyota Finance.

  • Your obligations The following list of obligations applies to vehicles returned to Toyota Finance at the end of your lease and applies equally to all vehicles regardless of model, age or kilometres travelled.
  • Maintenance – Regular maintenance and servicing should be carried out by your Toyota Dealer or by an authorised repairer in accordance with Toyota guidelines, using approved service parts and lubricants only. Any defects or damage occurring during normal vehicle use should be rectified as soon as possible. The Toyota Service and Warranty Booklets (including the full-service record) and any other documents relating to vehicle equipment should be retained and made available if the vehicle is to be returned to Toyota Finance at the end of the contract period. All documents must be in the vehicle upon return – including any details of radio codes.
  • Appearance – The vehicle should be returned at the end of the contract period in a suitably clean condition to allow for a proper inspection of the paint, body and interior.
  • Additional Equipment – Equipment such as car telephones that have been installed are to be removed, and any holes or damage should be repaired to a professional standard. All standard equipment, together with nonstandard or ‘customised’ fittings originally supplied with the vehicle, must be returned at the end of the contract period.
  • Badges and Labels – Non-standard badges, labels or advertising fitted to the bodywork or glass of the vehicle should be removed, with any damage caused by their attachment or removal fixed. Any paintwork colour fades due to the attachment of advertising will result in a fair wear and tear cost. Advertising should never be painted directly onto the vehicle.
  • Keys and Security – A full set of keys and remotes must be available and functioning. Return of the master key which controls the vehicle’s engine management system is mandatory. If the vehicle was originally supplied with a security system, this should be intact and fully operational, including any key or key fob necessary for operation. Any additional, non-standard security system should be fitted according to a recognised standard.
  • Mechanical Condition – The vehicle must be regularly serviced, properly maintained and kept in sound mechanical condition.
  • The following examples are conditions usually caused by neglect or misuse and therefore are not regarded as fair wear and tear:
1.  **Brakes –** Grooved brake discs caused by metal to metal contact.
2.  **Engine –** Seized due to running vehicle with insufficient coolant and lubricating oil, or with broken internal components.
3.  **Transmission –** Slipping, erratic gear changing, clutch slipping, noisy transmission or ineffective synchromesh.

FAIR WEAR AND TEAR TABLE

The following table highlights the minimum standards required for vehicles returned to Toyota Finance at the end of your lease, with different standards based on the kilometres travelled.

CATEGORY UNDER 100,000kms OVER 100,000kms

Interior Includes carpet, upholstery, seats, roof liner, floor, door trims, dashboard, centre console, luggage area etc.| The interior should be clean and tidy with no visible burns, tears or permanent staining to the seats, headlining or carpets. Wear and soiling through normal use are acceptable, as are any repairs that are not readily visible.

The following are also acceptable:

Moderate scratches/markings  Repaired console holes

 Normal odours, tobacco smells

Fading caused by normal exposure to sunlight

 Removable stains and singes that have not holed fabric material

The following are not acceptable:

Torn or ripped fabric
Immovable stains
 Singes or burn holes

Wheels

-rims

-trims

| Scrapes and scratches cover no more than 15% of the surface area.| Scrapes and scratches cover no more than 20% of the surface area.
Body damage Includes paint, panelling, and grille. Excludes: bonnet and bumper bars.| SCRATCHES
No more than 5 scratches per panel or 15 scratches per car. Excludes scratches:

1. through to the metal, which is longer than 40mm or wider than 1mm.

| No more than 8 scratches per panel or 20 scratches per car. Excludes scratches:

1. through to the metal, which is longer than 45mm or wider than 1mm.

| 2. not through to the metal at any point, but are longer than 120mm or wider than 1mm.| 2. not through to the metal at any point, but are longer than 120mm or wider than 1mm.
| CHIPS (EXCLUDING BONNET)
| No more than 10 chips per panel. Excludes chips with a diameter greater than 3mm.| No more than 15 chips per panel. Excludes chips with a diameter greater than 3mm.
| CHIPS (BONNET)
| On any 25% area of the bonnet, no more than 40 chips, of which 20 must be less than 3mm in diameter and the remaining less than 2mm in diameter.| On any 25% area of the bonnet, no more than 45 chips, of which 25 must be less than 3mm in diameter and the remaining less than 2mm in diameter.
| DENTS
| No more than 2 dents per panel, or 12 dents per car. Excludes dents greater than 40mm in diameter or 2mm in depth.| No more than 2 dents per panel, or 15 dents per car. Excludes dents greater than 50mm in diameter or 2mm in depth.
| RUST
| No rust.| No rust.
CATEGORY| UNDER 100,000kms| OVER 100,000kms
---|---|---
Bumper bars| 1. Marks covering an area less than 10cm² and no more than 1mm in depth; or

2. dents covering an area less than 20cm² no more than 3mm in depth and no more than 3 per bumper bar.

| 1. Marks covering an area less than 50cm² and no more than 1mm in depth; or

2. dents covering an area less than 60cm², no more than 3mm in depth and no more than 3 per bumper bar.

Protective moulds and mirror housing| Less than 4 marks, each having a total surface area less than 10cm² and less than 1mm deep.| Less than 6 marks, each having a total surface area less than 15cm² and less than 1mm deep.
Cargo Area| 1. Less than 8 dents, each having a diameter less than 70mm and less than 3mm deep; and

2. scraping to no more than 25% of the surface area.

| 1.  Less than 12 dents, each having a diameter less than 75mm and less than 3mm deep; and

2.  scraping and surface rust less than 1mm deep.

DEFINITIONS

The following terms have been defined to assist the reader. Any terms not defined will have their ordinary meaning.
Chip:

  • about glass, when a portion of the glass has been damaged/removed from the top surface of the glass; or
  • the removal of paint topcoat that causes base primer or metal to be exposed.

Bullseye:

  • damage that results from a conical (cone shape) section of the glass being separated from the laminated/bonding layer.

Dent:

  • a depression in the surface caused by a blow or pressure with no paint surface penetration.

Foreign Matter:

  • bird or bat excrement, tree sap and any other acids or material that is etched into the paint.

Scratch:

  • about glass, anything that has cut a shallow line in the layer of the glass greater than 1mm; or
  • an elongated mark that causes base primer or metal to be exposed that cannot be removed by cut and polish.

Star:

  • a series of line fractures radiating outwards from the point of impact on a vehicle’s windscreen.

Wiper Marks:

  • windscreen wipers which have carved an etching in the top surface of the windscreen.

END OF LEASE

At the end of your Full-Service Leaseplease ensure:

  • the vehicle is returned with the owner’s manual and a complete and accurate service history (including the first service). Service books must be stamped, evidencing each service was performed by an approved service agent.
  • that all equipment fitted to the vehicle at the time of delivery (or after delivery with TFS’s consent) is returned. This includes the master and service key and, where supplied with the vehicle, two remote controls.
  • that any signwriting has been removed from the vehicle and any damage caused to the exterior paintwork has been repaired.
  • that front and rear matching tyres are of the same speed rating and size as those originally fitted to the vehicle at the time of delivery.
  • Tyres must have at least 1.6mm of tread over all the road surface area of the tyre and otherwise be acceptable under Australian Road Safety Standards. No retreads.

Vehicle pre-inspection

  • You may elect to have your vehicle inspected.
  • Please contact Toyota Finance to arrange for this to occur.
  • A copy of the pre-inspection report will be provided highlighting the components which require rectification. Where damage is not rectified, you will be charged for the costs of having the vehicle repaired after it is returned.

Measuring Instrument

The following template is used by our inspectors to assess vehicles and is provided as a guide only.

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Toyota Finance

This Guide has been prepared using the statement of the interpretation of the Fair Wear and Tear Guide published by the Australian Finance Industry Association (AFIA) Fleet Leasing & Rental Division (formerly Australian Fleet Lessors Association AFLA). Toyota Finance is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536. TFA319 (03/2024) toyota.com.au/car-finance/full-service- lease.

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