Who pays for maintenance on a leased car and is it worth it?
When you take out a personal contract hire agreement – otherwise known as a lease – you have the option to include a maintenance package.
This is usually if you’re getting a brand-new car, but there’s often also the option on used models.
However, is adding a maintenance package to your lease worth it? And who pays for it? These are two questions we’re going to answer. But first, what do we mean by maintenance?
What is maintenance on a leased car, and what does it include?
Maintenance is an optional extra you can add to your lease deal. It covers the cost of anything that needs repairing on the vehicle, including tyres, brakes, lights, exhaust etc.
It doesn’t cover accidental damage, however. So if you’re in an accident, for example, your maintenance package won’t cover the cost of repairs.
As part of your maintenance package, breakdown cover, servicing and MOTs – if applicable – are also included, meaning aside from fuel and insurance, there are no extra costs you need to think about.
If you don’t have a maintenance package, anything that sits outside the manufacturer’s warranty – tyres, for example – would cost you to replace.
And, as part of the terms of the manufacturer’s warranty and the lease agreement, the vehicle has to be properly maintained with annual services and, if three years or older, MOTs.
Who pays for maintenance on a leased car?
A maintenance package is an optional extra, meaning it’s added to your monthly payment, and ultimately you pay for it.
Before you finalise your agreement, you can add maintenance to your finance terms. It’ll be charged at a fixed cost and worked into your payments, or you can choose to pay for it upfront.
Who’s responsible for repairs on a leased car?
It’s entirely your responsibility to maintain the vehicle during your lease. That means covering the cost of repairs if needed and paying for services and MOTs, if applicable.
As part of your lease agreement and following the manufacturer’s warranty’s terms, you have to keep the vehicle serviced. If you don’t, you won’t be covered by the manufacturer’s warranty should something go wrong.
Also, when you come to hand your car back at the end of your lease, if there’s anything broken or any damage, you’ll be charged by the lender.
Do I need maintenance if I have a warranty?
Although all new cars come with a manufacturer’s warranty, and you can add a warranty to a used car deal if it’s expired – like the comprehensive warranty we offer here at Zero Deposit Car Leasing – a maintenance package can help you save money.
Even though there’ll be some crossover in what they cover, there are other areas a warranty doesn’t account for, which a maintenance package will.
Tyres, for example. If your tyres need replacing, which they usually do every 20,000 miles, that’s not covered by the warranty, as it’s wear and tear. The same applies if your brake pads wear out.
Typically, during your lease, you’ll have to replace all four tyres and your brake pads at least once – depending on how long your lease lasts and how many miles you do. But when that time comes, you’ll have to foot the bill.
Yet, with a maintenance package that’s already covered and paid for, so there’s no need to worry.
And the same goes for servicing and MOTs. The average cost for a full service is around £150, although it can be as much as £300. And unless you take out a 12-month lease, you’ll have to cover that cost at least once.
But, again, that cost would already be accounted for with a maintenance package.
So, even though it’s wise to have a warranty, and we always recommend you do, a maintenance package can still add value to your lease agreement.
Can you get maintenance on business and personal lease cars?
Yes, maintenance packages are available on both business and personal lease cars.
And because you tend to do more miles with a business lease, it’s seen almost as a necessity for a business lease.
It’s also easier if you’re a business owner knowing everything is already taken care of when getting your company cars repaired, serviced or MOTd.
Is maintenance on a lease worth it?
Only you can decide whether adding a maintenance package to your lease agreement is worth it. However, here are some advantages and disadvantages to help you make your decision.
Advantages of adding maintenance on a leased car
- No surprise costs during your lease term
- Can split the cost of maintenance over a longer-term
- You’re covered should anything go wrong or wear out
- Usually make your money back on tyres, services and MOTs
- Keep your vehicle healthy without worrying about the cost
- Complete peace of mind driving
Disadvantages of adding maintenance on a leased car
- May not get your money’s worth if you don’t do a lot of miles
- Increases your monthly payment
- It doesn’t cover you for accidental damage
How do I add maintenance to my lease?
If you’re yet to take out your lease, or you’re in the process of doing so, speak to your account manager about adding a maintenance package.
They’ll be able to tell you how much it’ll cost, what change that’ll make to your monthly payment and give you advice on whether they think it’s right for you.
Adding a maintenance package isn’t right for everyone, but for the majority, it can make a big difference.