LeaseLoco

Lease Car Warranty

  • By Michael McKean
  • 5 min read

It's good that you have one.

The steering wheel and dashboard of a car.

Just like with any new vehicle, when you get a brand spanking new lease car, it'll come with a manufacturer's warranty.

So . . . give yourself a good old pat on the back.

But what exactly is the manufacturer's warranty, and what does it do?

Manufacturer's Warranty: Definition

The manufacturer's warranty is there in case anything majorly wrong happens to your lease car after it gets delivered to you.

Think of it as a guarantee by the manufacturer (BMW, Honda, or whoever's built your car) that if something isn't working the way it should be, then they'll cover the repairs necessary rather than you having to pay for it.

Happy days!

But of course, there's rules on what counts as 'majorly wrong' when it comes to problems with your car. It can't be a minor issue that's been caused by your own driving, but instead has to be something mechanical that's gone wrong during production or maybe on the way to a showroom or your delivery address (more on that in just a second). A white car in a garage.

What Does the Car Warranty Cover?

Generally speaking, your lease car warranty will cover any major mechanical/electrical component issues.

In other words, it's major mechanical things that definitely shouldn't be broken when you first receive the car.

These include any issues with the:

  • Transmission system

  • Engine

  • Gearbox

  • Steering

  • Suspension

  • Fuel and ignition systems

  • Cooling system

  • Brake system parts

  • Electrical items

So how exactly do you 'activate' your lease car warranty.

Well, situations differ, but if 1 or more of thes above components turns out to be faulty, you'll probably have to take your lease car to the nearest approved dealership to have the vehicle inspected.

And depending on the manufacturer, you might also be given a courtesy car in the meantime to make up for it. (But don't count on it!)

What Is Not Covered by the Car Warranty?

Anything that could be classed as 'cosmetic' damage or wear and tear (but not fair wear and tear, that's another thing).

In other words, problems which might be your fault, or which aren't clearly caused by the manufacturer.

These include:

  • Damage to paintwork, bodywork glass and headlights

  • Damage to the Sat Nav and audio equipment

  • Brake linings, disc pads & discs

  • Clutch wear caused by driving style

  • Batteries for key fobs and alarms

  • Tyres and wheels

  • Exhaust issues

  • Wiper blades

  • Seat, backrest and floor coverings

Most of these are controllable by yourself to some degree, but even if it wasn't your fault, the chance of having the costs covered by the manufacturer's warranty is unlikely. A close up of a wheel.

How Long Will My Warranty Last?

Depending on your leasing provider, the manufacturer warranty can last anywhere from 3 months to 7 years, or whenever you reach a certain mileage. Whichever comes first.

Read through your manufacturer's warranty terms to find out the exact details.

Should I Buy An Extended Warranty On a Leased Car?

Okay, but what if the length of the warranty is shorter than the length of your lease term? (Bearing in mind that the average contract length for a lease vehicle is around 3 years, though it can be for as little as a year.)

Well, that's where extended warranty cover comes in.

Likewise, if your warranty is measured in mileage terms, there's a chance that it might expire if you find that you're driving a lot more miles than you expected.

In which case you'd also want to look into getting it extended. A laptop and a cup of coffee on a table.

How Much Does An Extended Warranty Cost?

Usually in the low to mid hundreds, so starting at about £200 and increasing to about £600.

Expect to pay more for more premium brands like Audi and Mercedes-Benz.

Or if you'd rather not spend that much up-front, you could also pay on a monthly basis.

Breakdown Repair and Cover

As stated, most manufacturers' warranties only cover major mechanical issues.

What they don't cover are things like flat tyres and cosmetic issues.

So if you find yourself stranded on the motorway with a popped tyre, you'll need to cough up for the costs yourself or get covered separately for that. Your warranty won't be any help here.

Best course of action is to look into breakdown cover with companies like the AA and the RAC. They offer their own breakdown service 24 hours a day, 7 days a week.

They will cover you for parts and labour as well as call-out costs, not to mention repairing your vehicle if it's something more serious.

A Warranty is Not Insurance

More of an obvious one here.

Your vehicle warranty has absolutely nothing to do with your car/van insurance and doesn't cover it (be great if it did though, right?).

Moral of the story: don't be the one-in-a-million driver who thinks that the warranty covers the insurance! (Don't worry, we know you won't be.)

And just while we're on the topic of insurance: when you lease a vehicle, you are required by law to take out at least third party insurance as a minimum. In other words, that's insurance which covers you for damage to someone else's vehicle. A car crash with a yellow car.

Summary

As you've no doubt learned, there's plenty to be aware of when it comes to vehicle warranty cover, not least when car leasing.

Chances are it'll be nothing more than a formality and it won't even have to be invoked over the course of your car leasing career.

But remember, bad things can always happen with your car, even at the production stage and before it gets delivered to you. So you'll be glad that warranties are a thing!

FAQs

Do you get warranty with a lease car?

Yes, you do. Pretty much all lease cars are new cars, and since every brand new car comes fully-loaded with a manufacturer's warranty, that means you'll get one too. Happy days.

What happens if my lease car is faulty?

If you've just received your lease car and there's a mechanical problem, the manufacturer's warranty will have you covered for any necessary repairs and replacements. Whereas if it's a cosmetic problem that may have been caused by you, then the warranty won't cover it.

Is it worth paying for extended car warranty?

It could be, especially if your car lease term is a lot longer than the length of the manufacturer's warranty. After all, even if your car's built by a well-known, reputable manufacturer, there's always a chance that something can go wrong.

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