What is a Car Warranty on a Leased Vehicle?
More and more motorists these days are preferring to lease their personal vehicle. When you’re thinking about leasing your next car, it’s important to consider how to take care of it. Aside from ensuring you stick to the pre-agreed mileage, it’s good to review the warranty that comes with the car and how this works.
Even though you don’t outright own the vehicle, you should keep it safe from defects and damage and protect your pocket while doing so. Read on to understand more about what a car warranty is and how it can help your leased car.
What is a car warranty?
A car warranty is a sort of guarantee to protect your vehicle should it get a manufacturing fault within a certain amount of time or usage. If there is a mechanical flaw, a warranty will help to cover the costs of repair. When you lease a vehicle, it will come with a warranty.
Types of car warranty available
There are a number of different types of warranty that you can have on your car. A few options include:
- Manufacturer’s warranty: This warranty is a coverage plan provided by the original manufacturer of the car (such as Ford, Toyota or BMW). This factory warranty covers any mechanical repair not due to accident, abuse, or normal wear-and-tear. At Leasing Options, we offer brand new vehicles for leasing that come with UK manufacturer warranties.
- After-market warranty: If you’re looking to lease a vehicle for longer than the manufacturer warranty is valid, you may need an extended warranty. Generally, most used cars come with a three-to-six-month warranty when purchased from a reputable dealership.
- Breakdown repair and cover: In some cases, manufacturers or dealerships offer roadside assistance and breakdown cover. This is becoming more common, and will help you to get home in the event of a breakdown.
What’s covered in a warranty?
What’s covered in a warranty depends on what the manufacturer and other companies agree to include. While some cover the basics, others will go the extra mile. A standard warranty tends to offer protection for the following:
- Steering and handling
- Ignition and fuel systems
- Electrical components
- Coolant and cooling systems
- Components in the braking system
- Clutches that are non-frictional
- Vehicle suspension
When you’ve decided on a vehicle, be sure to read through the warranty to better understand exactly what is covered.
What’s excluded from a warranty?
While exclusions will vary between warranties, you shouldn’t expect the following to be included as standard:
- Wear and tear to tyres and wheels
- Bodywork (such as denting and scratches)
- Brake pads and most clutches
- Air conditioning systems
- Audio equipment
- Digital displays
- Glass in windows
Broadly speaking, the warranty won’t cover wear and tear, anything that is down to driver abuse, or anything that has been caused by the driver failing to maintain the vehicle as per the manufacturer’s guidelines.
How long does a lease-car warranty last?
Typically, the duration and maximum mileage of a new-car warranty is chosen by the manufacturer. These terms will vary between brands and sometimes even between individual models in a range. Generally, you should expect the cover to last for at least three years or 60,000 miles – whichever comes first – for new cars. This is also how services are measured, meaning that the more you use the vehicle, the more you will have to get it serviced or take out extended warranties on it.
It’s good practice to have a look through the manufacturer’s warranty conditions to understand the maximum mileage covered. If you drive the vehicle over the limited mileage allowed, you may no longer be covered by warranty servicing and breakdown. You may also have to pay a mileage excess on your lease deal, if you have not selected an appropriate mileage allowance.
Can I extend my warranty?
You may have noticed that the warranty on a car lasts around the same amount of time as the average lease agreement. However, if you have opted for a longer lease agreement, you might want to consider extending your warranty. In most cases, you can extend your warranty by one to three years, although it does depend on the car’s age and total mileage.
Extended auto warranties often cover the engine, transmission, drive components, and many other parts. Some of these warranties may cover wear-and-tear, which is usually excluded by factory warranties.
What’s the difference between a warranty and insurance?
Auto warranties are not car insurance, but they can be thought of as protection against unexpected breakdown costs. Auto insurance is there for when you get into an accident or when the vehicle is damaged by a crash, fire, or another disaster.
A warranty steps in to help when your vehicle needs repairs rather than repairing damage. Both a car warranty and auto insurance are important when looking to protect the vehicle and your finances.
When you lease a car, it will come with a warranty. Take time to review this plan so that you understand what coverage comes with the vehicle.