Question from a reader:
I am a sole proprietor subcontracting for a major delivery company. After returning a leased commercial vehicle due to contract termination, I later received an invoice for approximately 280,000 yen, stating that “the condition of the vehicle was poor and repairs were made.” The invoice includes costs for repairing scratches and dents, as well as the cost
of replacing tires and batteries with new ones, and maintenance fees. The lease agreement does not have a clear clause regarding the restoration to original condition upon return, but it does state that I am responsible for maintenance and repair costs. The vehicle is a 2018 model with over 180,000 kilometers driven, and the vehicle inspection expiration date was June 28. Since the return location was far away, I also bore the cost of transportation. So, my question is this: Am I obligated to pay the approximately 280,000 yen for repair and maintenance costs that I am being charged? Can I refuse payment for scratches and dents caused by normal cargo operations as “normal wear and tear”? Even though the lease contract has ended, am I still required to cover the costs for consumables like tires and batteries to be replaced with new ones? In cases where there are no stipulations in the contract regarding the return, how is the range of the borrower’s responsibility generally interpreted?

Is there a payment obligation for an invoice after the lease contract has ended?

Hello. This time, I would like to answer a question regarding repair costs incurred after the termination of a lease contract. Having experience in the entertainment industry, I understand that troubles related to contracts and invoices are not someone else’s business. Especially when dealing with expensive assets like vehicles, it is crucial to have a legal perspective.

Background of the Case

You mentioned that you are a sole proprietor subcontracting for a major delivery company. You returned a leased vehicle upon contract termination and unexpectedly received an invoice. This invoice includes not only the costs for repairing scratches and dents but also the costs for replacing tires and batteries, as well as maintenance fees. It raises the question of whether you have a payment obligation regarding this. I have had similar experiences. When leasing a vehicle, I realized the importance of thoroughly reading the contents of the contract. Lease agreements contain various clauses, but especially the clause regarding “restoration to original condition” is very important.

Reviewing the Lease Agreement

First, you mentioned that there is “no clear clause regarding restoration to original condition upon return” in the contract, which is a key point. Generally, if there are no specific clauses in the contract, parts that are typically considered “normal wear and tear” are often interpreted as not being the responsibility of the borrower. I also confirmed in a previous vehicle lease agreement that it stated, “Wear and tear from normal use is not the responsibility of the borrower.” In such cases, scratches and dents are generally treated as “normal wear and tear.”

Normal Wear and Tear vs. Abnormal Wear and Tear

Let me explain the difference between “normal wear and tear” and “abnormal wear and tear.” “Normal wear and tear” refers to damage or deterioration that naturally occurs during use. On the other hand, “abnormal wear and tear” refers to damage that occurs due to excessive use or improper handling. For example, if tires wear out excessively due to reckless driving, it is often considered “abnormal wear and tear.” The scratches and dents from your business use are likely to be considered “normal wear and tear.” Of course, if there is damage from an accident or collision, that would be a different matter, but minor scratches from everyday business use would fall within that category.

Considerations Regarding Replacement of Consumables

Next, let’s discuss the costs for replacing tires and batteries. The question is whether you need to bear the costs for replacing these consumables with new ones even though the lease contract has ended. Generally, when returning a vehicle at the end of a lease contract, the burden of costs may vary depending on the condition of consumables. For instance, since you mentioned that the mileage exceeds 180,000 kilometers, it is unlikely that the tires and batteries would be in like-new condition. In many cases, it is often the right time for replacement. I have previously avoided charges by saying, “The tires are still usable, so there’s no need to replace them” when returning a leased vehicle. The leasing company assesses the condition of the vehicle and determines necessary repairs or replacements, but it is rare to be excessively charged for wear and tear from normal use.

Interpretation Based on the Contract and Legal Perspective

Now, regarding how to interpret the lack of stipulations in the contract upon return, this is also an important point. In many contracts, wear and tear resulting from normal use is generally considered not to be the responsibility of the borrower. However, since the contents of contracts vary, it is essential to carefully review the specific clauses. Even if there is a clause stating, “The borrower is responsible for maintenance and repair costs,” it may still be interpreted that normal wear and tear falls outside of that scope. Legally, it is important to look at the content of the contract and the usage conditions of the vehicle comprehensively. Keeping records of the vehicle’s usage history and its condition at the time of return can also be helpful as evidence. If the invoice is unsatisfactory, consulting a professional can be one way to address the issue.

Summary and Advice

Regarding this matter, whether you have a payment obligation depends on many factors. If scratches and dents are treated as “normal wear and tear,” you can certainly refuse payment for the invoice. Additionally, regarding the costs for replacing consumables, it is necessary to assess based on the contents of the contract and the vehicle’s usage conditions. I personally realize the importance of thoroughly reviewing the contents of contracts and consulting professionals when necessary. To avoid future troubles, it is crucial to clarify any doubts regarding contracts as they arise. Finally, if you have any concerns or questions, please consider consulting a professional. Having some reassurance before facing difficulties can positively impact your future business. Wishing you all a good contracting life!