Are Leased Vehicles Covered by Warranties?

Are Leased Vehicles Covered by Warranties?

Leasing affords the customer a low monthly payment and the ability to upgrade to a new model in three years. The downside of leasing is that the terms can be confusing. With a leased car, you will be responsible for carrying higher mandatory levels of insurance, maintaining the vehicle, and performing necessary repairs, which makes it important to check if your vehicle will have a warranty to avoid high repair bills. 

Manufacturer’s Warranty on a Leased Car

Every new car comes with several warranties, including a bumper-to-bumper factory warranty backed by the manufacturer. A new car warranty will be in effect for a minimum of 3 years or 36,000 miles and cover all repairs to the vehicle except wear such as worn brake pads and tires. You will also need to pay for maintenance like oil changes during this time. Some manufacturers have even longer warranties. Along with the valuable bumper-to-bumper warranty, you will also have a powertrain warranty that kicks in when the factory warranty runs out. This warranty covers repairs for all moving parts of the car: the engine, suspension, and transmission. 

Your Car Should Be Covered for the Full Lease

Today about 25 percent of leases are for more than 3 years and roughly 40 percent of drivers go over the standard mileage limit.  This means It is highly likely that the manufacturer's warranty will expire during the lease making you responsible for any repairs.  


Do You Need an Extended Warranty?

Once the bumper-to-bumper warranty is up, you will be responsible for repairs that aren’t covered by the powertrain warranty.  You should also keep in mind that you do not own the car. It’s just a lease, and it might be a good idea to pay for an extended warranty for unexpected repairs that must be done upon termination of the lease.  

There are shorter term Service Contracts available to keep you protected. You may also want to buy a warranty if you are leasing a used car with no warranty remaining.

If you’re thinking about leasing a car but don’t know where to start, get in touch with compassVSC. We can help you find the most convenient coverage options you’re looking for. 

Call 866 BUYVSC-0 (866-289-8720) o speak with one of our friendly and knowledgeable representatives.

Latest blogs:

15 Auto Hacks you do not want to miss!

There are a lot of car problems that can be solved with a little elbow grease and some ingenuity. Some places charge hundreds of dollars to fix relatively simple problems and people pay out way too much money to fix simple little problems. Here are some car hacks you can use to save yourself some money and make your car experience more enjoyable.

Auto Reconditioning VS Auto Detailing

Every used car and boat on the road or water is a potential candidate for reconditioning. In days past, the general attitude was that reconditioning was for vintage vehicles. With the continued increase in the average price of new automobiles and watercraft and the increased length of time that owners keep their vehicles longer - reconditioning your car or boat will only aid in your ability to either sell or keep your babies longer.

Why is a Newsletter important??

Newsletters are great for engaging with your customers However, It’s not just about keeping your business fresh in the minds of your customers. Email newsletters are also a great and vital way to share important news, to promote new products, and to keep your customers informed. Basically, if there’s any announcement or update you think your customers should be aware of, then you should be dedicating a newsletter to it. Don’t just rely on a notice on your website or social media post. Email newsletters are the best way to spread the news quickly and reliably. Next you want to expand your connections in the social media world. Be part of that community too. Contribute to them here just like you did in that newsletter, and enter a world of connection.