If you lease a new car, the factory warranty covers any mechanical repair not due to accident, abuse, or normal wear-and-tear. The factory warranty is a coverage plan provided by the original manufacturer of the car (Ford, BMW, Toyota, etc.).
Once the factory warranty expires, all repairs are paid for out of your pocket. Some drivers erroneously assume that leasing automatically provides vehicle protection as well. But lease and warranty terms are completely independent of each other.
Let’s say your lease has a three year term and the vehicle’s factory warranty term is also three years. This means that during the time you hold the lease, your repairs are covered. But what happens if you renew your lease? The factory warranty is not automatically renewed. In fact, factory warranties can never be renewed. Your best option? Get an extended vehicle protection plan.
Car warranties come with all new vehicles and act as guarantees against defective or poorly installed parts. Vehicle service contracts are agreements between a customer and contract administrator that the administrator will pay for select repairs. Vehicle service contracts may be purchased while a car is still under its factory warranty, but coverage really takes effect after the car’s warranty has expired.
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.
Warranties are provided by the manufacturer, and service contracts can be purchased from the manufacturer or a third-party provider. New car warranties typically provide more comprehensive coverage than vehicle service contracts, but not always.
Vehicle Service Contracts or “VSC” refers to coverage that comprehensively pays for mechanical failures and repairs. You could purchase a service contract from the car manufacturer. Third Party companies and Dealers also offer Vehicle Service Contracts for their customers. These VSCs are not in any way warranties. Their services cover the number of funds that should have been paid to repair your car in places like Brooklyn, NY should your vehicle be in need of Auto Repair. It all depends on the policy you purchase, though. The services work just like a warranty and insurance. The policy expires when your car reaches the agreed number of miles determined from the policy or plan you purchased.
What Does a Vehicle Service Contract Cover?
There are so many different policies. Some service contracts do not cover every type of repair. Some cover repairs for clutches, brakes, and other common essential parts that could be repaired during regular car maintenance checkups. These service contracts provide and list the specific number of items they would cover from their contract. If an item is not on the list, anything goes wrong with that item; then it wouldn’t be covered.
There are several auto service contract providers who have serious exclusions. They get to refuse to provide one a service for different reasons.
For example, if a part of the car that’s not covered gets damaged and the service provider completely disagrees with fixing that part of the vehicle.
Some contracts only cover mechanical damages. These would deny claims from you on parts that are spoilt by normal wear and tear.
Different companies calculate the coverage by looking at the depreciation rate on your car. These contract providers would partially repair the costs based on the number of miles your car has been used to drive.
It’s best to check what your policy says whenever you need to go and get your car checked. Because that is the only way you’ll know which parts of your car would be fixed and the parts that may not be covered.
Signature Auto Group New York & Florida’s Premiere New Car Leasing Company
With Signature Auto locations in Brooklyn, NY and Fort Lauderdale, FL we are dedicated to providing our New York Auto Leasing and Florida Car Leasing customers the best deals on the latest Auto Leases. As a company we learned a long time ago just how significant it is to have talented, loyal and motivated staff to serve our clients in every aspect; before, during and of course even after such an important vehicle purchase. Even though this will always be an ongoing process, this organization has been fortunate to have attracted and retain such extraordinary individuals at every single level in this company.
We are honored to serve all Signature Auto Group clients past, present and future clients in the major areas of the United States and around the rest of the world. Signature wants their customers to enjoy life to its fullest. We also have high standards that the staff agrees with and are committed to providing you with the service you deserve. The sales staff is extremely knowledgeable about our products and is there to get you the fantastic vehicle that you want and desire. Come on in and check out our extensive inventory that includes all the latest makes and models of vehicles. It doesn’t matter whether you are wanting to purchase or lease; we have the perfect plan for you. And don’t forget to check out our specials, we are always having great lease specials on a lot of the new vehicles in stock.