Extended Warranty on Lease Car?

Reader question:

I’m going to lease a new car. Do I need an extended warranty?

Charles

It depends.

You have to take your situation into hand. First of all, extended warranties can be very useful whether you are leasing or buying and having one can save you a lot of money. Sure, it costs a little bit at first, but after that first major repair it pretty much pays itself off, so why worry? Putting a little extra money down ahead of time can save you a whole lot in the future. But when you are leasing a car, you want to be very careful about when you get an extended warranty on a vehicle because you never know what will happen and the car is not yours.
If you are leasing a new car for a lease term period that last thirty six months or less, you do not need an extended warranty. It is just very unlikely to come in handy. Extended warranties should not be gotten for such short lease periods, because they are pretty much useless. If a leasing company tries to sell one to you, they are tricking you and trying to play you for a fool, because you will not need it.

When you will need it is if, for some reason or another, you end up with a lease term of sixty months or more. You shouldn’t be getting a term this long in the first place, because it isn’t necessary and you’ll be paying too much money. But if you do, you should protect yourself with an extended warranty. It’s a long time, and so it’s very possible that something will go wrong with the car during those five years. And guess who’s responsible for repairs if you don’t have an extended warranty? You are. If you return your leased vehicle in bad condition, you could end up paying lots of fees. If you have a lease term this long, the warranty pays for itself.

Cheers,

Fashun Guadarrama.

About the Author:

Austin Davis, consumer car repair advocate. "Hi there! I love to help people solve their car repair problems and I hope my site was helpful to you today. Thank you for stopping by."