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        home > guides > Car Warranty > Warranty On Leased Vehicles

        Warranty On Leased Vehicles

        TDB Staff
        Nov. 26, 2021

        This article covers the basic on leased vehicle warranties, including the basics of lease vehicle coverage and extended warranties for leased cars.

        Affiliate Disclosure

        Do I Need A Warranty On A Leased Car

        Leasing a car is now more popular with many car buyers now opting to lease their car for longer periods. The number of lessees who’ve opted to extending their lease for the longterm lease has risen by 18 percent.

        Whether a driver needs a warranty or not comes down to a few important things such as the length or their lease and what their insurance covers with regard to accident protection and repairs. Drivers should also consider the driving distance to licensed repair shops and ensure these are conveniently accessible to them.

        Leased cars must be treated by the lessee like they would their car.


        Warranties On Leased Cars

        If buyers lease a new car, the car will be covered by the factory warranty for a period of time that often expires before the end of the lease term. The factory warranty will cover mechanical repairs and maintenance that are not caused by accidental damage, abuse of the car or normal wear-and-tear. The factory warranty is often provided by the car manufacturer.

        If the car is from a manufacturer like Ford then Ford will cover the warranty on the leased vehicles. Once the factory warranty expires, drivers can opt into buying an extended lease warranty to ensure they are covered for the duration of their lease term.


        What Is Covered When You Lease A Car

        If the factory warranty has not expired, the manufacturer specifies what aspects the warranty covers. It is important for drivers to read the terms of their lease when signing and make sure they understand what aspects the warranty covers and how long its valid. All manufacturers cover defects or failures but there are exclusions on certain items such as hoses, lights, belts, tires and other wearable parts that are used often after an initial period.

        Most warranties do not cover maintenance costs. These are the responsibility of the lessee. Most leased vehicle owners think that because they do not own the car, they are not responsible for maintaining it but that is a misconception. All lessees assume responsibility for the car until their lease expires. During this time, the lessee must treat the car like it was theres and make sure to take extra care of it to their lease standard.

        If the lessee wants to continue accessing certain parts of their initial warranty, they can purchase an extended warranty or buy additional coverage from the manufacturer such as Ford that offers the WearCare package. The biggest advantage with these packages is that they often allow the lessee to waive extra repair and mileage charges up to $4,000 or any amount the lease typically allows.

        Nearly all leasing contracts are expire after three years making it important to obtain extended warranty on leased vehicles to offset any high costs.


        Should I Buy An Extended Warranty On A Leased Car

        This depends on what is covered when you lease a car. If these benefits are not available in a standalone add-on package, then an extended warranty on leased vehicles is he best option.

        Otherwise, if the lessee enjoys the benefit of the extended warranty, then they should buy one. Extended warranties often provide similar benefits to the factory warranty. They often cover the engine, transmission, driving components and a host of other parts on the car.

        Some extended warranties go as far as covering wear-and-tear normally not covered by default factory warranties. The lessee should do their research and read the conditions of their manufacturer’s warranty to understand whether it suits their needs.

        There are many advantages of extended warranties. Some of these include a no haggling policy on repairs and prices, the warranty providers will pay the costs directly to the repair shop. The cost of the warranty in most cases is less than the out of pocket costs to cover the repairs. The rental car is provided while the repairs are being performed.

        Lessees will have access to roadside assistance and trip interruption benefits. The extended warranty offers protection and savings from the rising costs of auto parts, that often make repair extremely expensive. Lessees can take their car to any licensed repair facility giving them the flexibility they need to avoid life disruptions.


        Benefits Of Extended Warranties

        Extended warranties are not car insurance, they offer protection against costs of a breakdown. These are extremely beneficial and often straightforward for lessees to use. They are extremely practical for older cars that have a higher chance of breaking down. They help owners cover repair and maintenance costs on their vehicles, saving them money.


        Dealer Extended Warranties

        Dealers often offer extended warranty options to their lessees when the factory warranty expires. It’s easier to purchase and use a dealer warranty because it allows the lessee to have a dependable place to take their car for repairs, which is especially important for first time drivers, drivers with expensive cars and drivers who simply like the convenience of a one stop service shop.

        Experienced drivers and lessees are better off shopping around for other cost effective options because dealer offered warranties are often expensive for people on a budget. It is important for the lessees not to feel pressured to buy vehicle protection from dealers without understanding their options, especially if the lessee seeks to save money.

        The short answer to the question “should I buy an extended warranty on a leased car?” is absolutely. An extended warranty will offer the lessee peace of mind and repair options for caring for the car. The lessee is still responsible for the entire cost of the car if it happens to get into an accident, therefore they would benefit greatly from an extended warranty that will help offset any additional repairs not covered car insurance.

        Extended warranties offer the lessee additional servicing options and the ability to have the car on a servicing schedule, which will keep the costs on the lease low if the car is in it’s best condition.

        The cost of owning or leasing a car really lies in the amount of repair and maintenance the car will need over the duration of it’s lease term. A warranty will help lower the maintenance costs of the car.

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