When you lease a car in Orange County, you get a brand new car with an affordable 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 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
Ideally, your lease will last for no more than 3 years, which is the length of most manufacturer’s warranties. The warranty should also cover the number of miles you will drive. Most car leases cap at 12,000 miles per year, which would be 36,000 at the lease’s end. By the time you turn in your car, the manufacturer’s warranty should be just running out. If you’re leasing a car for more than 3 years, the factory warranty will most likely expire before the end of the car lease. Orange Countydrivers should know that about 25 percent of leases today are for more than 3 years.
Do You Need an Extended Warranty?
If your car breaks down or requires repairs during the lease, the factory warranty will pay for repairs while it’s in effect. Once the bumper-to-bumper warranty is up, you will be responsible for repairs that aren’t covered by the powertrain warranty. When you lease a car, the dealership will probably offer you an extended warranty that kicks in after the manufacturer’s warranty. Extended warranties are different than the manufacturer’s warranty. You will need to pay for this warranty, and it could be between $400 and $2,000. These warranties may also be bundled with coverage like a free rental car in the event your leased car breaks down.
If you’re not sure if you should buy the extended warranty, consider your lease is probably going to remain under the factory warranty for the entire lease period, or at least most of it. While something could go wrong with the car, it’s unlikely because the car will be new. You should also keep in mind that you do not own the car. It’s just a lease, and it might not be a good idea to pay for an extended warranty for six years on a car you don’t own. With that said, there are several situations in which an extended warranty can pay off. Some manufacturers have shorter warranties. If you are signing a lease for more than three years, buying the extended warranty might make sense. 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 Below Invoice today. We can help you find the luxury vehicle you’re looking for. Call 949-630-0303 to speak with one of our friendly and knowledgeable representatives.