What is Reconditioning Reserve?
Definition of Reconditioning Reserve
Reconditioning reserve is the amount of deposit that is paid by the one who leases the car. The main purpose of reconditioning reserve is to offset expenses incurred by the owner of the property for damage that occurs outside of normal wear and tear.
Explanation of Reconditioning Reserve
This deposit acts as a security against any damages, wear and tear and excess mileage of the car. At the end of decided period if the car is given back in its original condition then the reconditioning reserve would be returned. If the vehicle needs to be repaired or reconditioned, a portion or the entire reconditioning reserve would be applied to cover the expenses.