My Lease Vehicle Has Developed A Fault, What Are My Rights?

If your lease vehicle has developed a fault, it can be stressful, especially if you rely on your car every day and you’re not sure who to speak to first.

The good news is that you're not left on your own. When you lease a new car, it will likely be covered by a manufacturer's warranty, which means that faults can often be looked at by an approved dealer. 

There are also clear steps you can take if the issue isn't resolved as expected. 

In this guide, we’ll explain what to do if your lease vehicle develops a fault, who you need to contact, how warranty cover usually works, and what your options are if the problem continues.

If you notice a fault with your lease vehicle, the first step is to stay calm and avoid ignoring the issue. 

A fault could be something obvious, such as an engine warning light or a strange noise when driving. However, it could also be something less urgent such as a faulty infotainment display or parking sensor problem. 

Whatever the problem, it's best to deal with it as soon as possible. Continuing to drive a faulty vehicle could make it worse, and in some cases, put you in danger. 

As a general rule: 

• If your vehicle feels unsafe to drive, stop using it immediately
• If a warning light appears, check the vehicle handbook for details and contact your breakdown provider
• Contact your finance provider or the manufacturer to see if the fault is covered under warranty
• Keep a record of what's happened, including dates, pictures, warning message, and any conversations you have 

It's also worth checking whether the issue may be linked to servicing, maintenance, or fair wear and tear. 

Not every problem will be treated as a warranty fault, so understanding the difference can help avoid confusion later on. 

A manufacturer’s warranty is essentially a promise from the vehicle manufacturer to repair certain faults if something goes wrong within a set period.

Warranty periods can vary depending on the manufacturer, typically ranging from around three years, although some brands offer longer cover. Mileage limits may also apply.

What your warranty usually covers:

• Mechanical and electrical faults
• Repairs during the warranty period

What isn’t typically covered:

• General wear and tear over time
• Damage caused by accidents or misuse
• Issues resulting from missed or incomplete servicing

Once you’ve reported the issue, the next step is to usually arrange an inspection with an approved dealer. They will confirm whether the fault is covered under warranty, and if it is, they will usually carry out the repair under the terms of the warranty. 

You can find out more about this in our manufacturer warranty guide. 

In most cases, if the vehicle is covered under the manufacturer's warranty:

• Repairs will be completed at no cost (if covered)
• You may be offered a courtesy car
• Work will be carried out by approved technicians

If the issue isn’t covered, the dealership will explain why and talk you through your options.

Responsibility for the fault depends on what it is. 

If it's a mechanical or electrical fault covered by the manufacturer's warranty, the manufacturer covers the cost of repairs. 

If the fault results from fair wear and tear, or something you're responsible for, such as damage caused by an accident or misuse, you will be responsible. If you have a maintenance package, routine repairs and servicing may be covered, but it's worth double-checking first. 

Your rights will depend on how long you have had the lease vehicle. 

If a significant fault develops early in the lease, particularly within the first 30 days, you may be entitled to additional protection under the Consumer Rights Act.

Because the vehicle is owned by the finance provider, it's important to keep them informed of any ongoing issues. 

Your lease agreement outlines your responsibilities and what's covered. 

Persistent or recurring faults are frustrating and can be harder to resolve. If the same issue keeps reappearing after repair, make sure you document each recurrence, such as dates, pictures, and what the dealership did in response. 

If you’re unable to reach a satisfactory outcome with the dealership or manufacturer, you may wish to seek independent advice or escalate the issue through relevant industry bodies.

If your lease vehicle has developed a fault and you're not sure where you stand, our team can talk you through your options. Call us on 0345 811 9595 to speak to an expert.