When you rent a car, the dealer will likely offer you an extended warranty that takes effect after the manufacturer's warranty. Extended warranties are different from the manufacturer's warranty. The short answer to the question “Do I need to buy an extended warranty for a leased car? it absolutely is. An extended warranty will offer the renter peace of mind and repair options for car care.
The renter is still responsible for the full cost of the car in the event of an accident, so they would benefit greatly from an extended warranty that would help offset any additional repairs that are not covered by car insurance. If you keep or lease your car for less than the duration of the factory coverage, you don't repeat or need an extended warranty. New cars generally come with a warranty that lasts three years or 36,000 miles, whichever comes first. If your lease includes a limit of 12,000 miles per year (a typical limit), the warranty would extend the duration of the lease.
During this time, the renter must treat the car as if it were there and be sure to take special care of it according to the rental regulations. Extended warranties offer the renter additional maintenance options and the ability to maintain the car on a maintenance schedule, which will keep lease costs low if the car is in the best condition. It's important for drivers to read the terms of the lease when they sign it and make sure they understand what aspects the warranty covers and how long it is valid. Most leased vehicle owners think that since they don't own the car, they're not responsible for maintaining it, but that's a misconception.
You can expect to pay 15 to 25 cents at the end of the lease for every mile you exceed the limit set on the car, Montoya said. If the renter wishes to continue to access certain parts of their initial warranty, they can purchase an extended warranty or purchase additional coverage from the manufacturer, such as Ford, which offers the WearCare package. Once the factory warranty expires, drivers can choose to purchase an extended lease warranty to ensure that they are covered for the term of the lease. Some extended warranties go so far as to cover wear and tear that are not normally covered by default factory warranties.
However, going beyond the 36,000 mile warranty before the lease ends may be more than what repairs could cost you. If these benefits aren't available in a separate add-on package, the best option is to extend the warranty for leased vehicles. Over the years, I've spoken to hundreds of car buyers and have found that the decision to purchase an extended warranty is a very personal and quite emotional one. The length of the warranty varies by manufacturer, but many offer full warranties of three years or 36,000 miles, whichever comes first.
Nearly all lease agreements expire after three years, so it's important to get an extended warranty for leased vehicles to compensate for high costs.