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 may be covered by under the 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 address the issue. 

A fault could be something obvious, such as an engine warning light or a strange noise when driving. It could also be something less urgent, such as a faulty infotainment display or a 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. You can also contact Nationwide Vehicle Contracts and we'll advise you. 

It's crucial that you keep evidence of what's happened, particularly if the problem continues and you come to escalate the issue further down the line. 

We recommend that you make a note of: 

• When the fault appeared 
• Vehicle mileage 
• Any warning lights or messages 
• Photographs or videos of the problem (where possible)
• Who you spoke to and when 
• Any inspections or repairs 
• Whether the problem returned after a repair 

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. 

There are several businesses involved in a vehicle lease, so it's understandable if you're unsure who to contact: 

• Your finance provider - The finance provider owns the vehicle and supplies it to you under your lease agreement. If you believe there is a fault, tell your finance provider first. 
• The manufacturer - If the vehicle is covered by a manufacturer's warranty, the manufacturer or one of its approved dealers will normally handle the issue. They can also tell you whether the issue is covered by the warranty. 
• Nationwide Vehicle Contracts (or your finance broker) - If Nationwide Vehicle Contracts arranged your lease, we can also help point you in the correct direction. 

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 by manufacturer, but typically last around 3 years or 60,000 miles, although some brands offer longer coverage. 

What your warranty usually covers:

• Mechanical and electrical faults.
• Parts that have failed because of a manufacturing defect.

What isn’t typically covered:

• General wear and tear over time.
• Damage caused by accidents or misuse.
• Issues resulting from missed or incomplete servicing.
• Problems caused by modifications. 
• Faults that fall outside the warranty's time or mileage limits. 

Once you’ve reported the issue, the exact process will depend on the fault and who you report it to. 

It's likely that you'll be asked to take the vehicle to an approved dealer so they can inspect it. They'll decide what caused the fault, check whether it's covered by warranty, and tell you whether there will be any charge. 

Ask for the findings in writing if you can and keep them on record. 

If the fault is under warranty, the repair should be completed without charge. 

If the manufacturer says the fault is not covered, you will likely be responsible for the repair costs. 

You may be offered a courtesy vehicle while yours is being repaired, but this is not always guaranteed.

Availability can depend on the manufacturer, dealer, repair arrangements and the terms that apply to your vehicle.

Responsibility for the fault depends on what it is. 

• Manufacturer or vehicle quality fault - If a fault is covered by the manufacturer's warranty, the repair will normally be dealt with under that warranty. If it's not covered by warranty, you'll be responsible for repair costs. 
• Servicing and maintenance - You're normally responsible for servicing and maintenance when taking out a lease agreement, unless you have arranged a maintenance package. If you fail to keep the vehicle in line with manufacturer servicing guidelines, it can invalidate your warranty. 
• Damage or misuse - You may be responsible for damage caused by an accident, misuse, neglect or failure to follow your responsibilities under the agreement. Insurers may cover some damage, but that depends on the circumstances. 

Your rights will depend on how long you have had the lease vehicle. If your lease car was faulty when it was supplied, you may have rights under the Consumer Rights Act. 

Since the finance provider owns and supplies the vehicle, you should report the fault to them as soon as possible. 

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. You may be able to reject the vehicle if you're still within the first 30 days; after this, you will normally have rights to repair or replacement. 

Your rights depend on the individual circumstances. Don't agree to pay for things before you have done your research, and always contact your finance provider first. 

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.

You can make a formal complaint to the finance provider, and they will generally have up to eight weeks to issue their written response. 

If you are still unhappy, you can escalate a complaint to the Financial Ombudsman Service, usually within six months of the finance provider's final response. 

As always, if you're unsure what to do, then in touch with Nationwide Vehicle Contracts and we can advise you what to do. 

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.