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Administration Fees and why we have to charge them

These days, airlines, industry and vehicle fleet operators, such as the Post Office, Police or Car-Hire companies do not actually own their vehicles. Rather large numbers of vehicles, aircraft or industrial equipment will be operated on lease, and it is the leasing company that actually owns the vehicles.

Any company director will know that a leased arrangement is far better than ownership, because he will then get all the benefits of ownership without the costs and responsibilities, and most vehicle leasing arrangements mean he gets a brand new car after a year or two.

Now the problem comes with charges, fines and penalties when they occur because all such notifications are sent to the leasing company, as the owner of the vehicle.

The leasing company then forwards that to the car hire company, plus a small invoice of £30 or so, to cover their administration costs - someone has had to open the envelope, read the notice, go off and look up who is leasing that vehicle, then stick the notice in an envelope and forward it on - so an administration fee from them is fair.

We as the car hire company will then have to go through the same process of looking up the customer who used that vehicle at the time of the charge or penalty and forwarding on the notice, and it must be done in a hurry, because we need to surrender the deposit back to the customer as quickly as possible, minus the penalty charge. For this, we also need to charge a small fee, in our case £15 + VAT, so the total administration cost is £50.

Customers may well (and often do!) complain about this fee, and whilst we completely understand that money is tight at the moment, if the customer had followed all the rules and had not incurred a penalty, then there would be no fee necessary.

This is why an administration fee is charged. We hope this makes things clear.

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Further Information on this Website:

• Our Vehicle Rental Charter
• Security Deposits - Our Policy
• Security Deposits - The Situation with Deposits - Clearing the Confusion
• Administration Fees - Why we have no choice but to charge them
• Things a Camera might automatically see you doing!
• Standard Terms and Conditions [Web Version]

Further Reading:

For the benefit of our customers, please find additional and very useful information on the BVRLA website: {LISTLINKEXXS;BVRLA-1|BVRLA-2|BVRLA-3|BVRLA-4|BVRLA-5}