Who pays for servicing on a lease?
If you lease a car or van on business contract hire, you normally pay for servicing yourself. The funder owns the vehicle but expects you to keep it serviced. A maintenance package can be added, in which case its cost is built into the rental and it covers the servicing.
The detail
Without a maintenance package. You arrange and pay for all servicing, MOTs and repairs. You must follow the manufacturer's service schedule and keep proof that each service was done. Most funders allow a qualified independent garage as well as a franchised dealer, but check the contract terms.
With a maintenance package. The rental includes the cost of scheduled servicing, and often some wear items. What is covered depends on the package and the funder. Common inclusions are:
- Scheduled services and MOTs
- Brake parts and tyres
- Breakdown cover
Fuel, insurance, damage repairs and anything outside the package are usually still your responsibility. Always read the schedule of what is and isn't covered.
Why servicing matters at the end of the lease. When you hand the vehicle back, it is inspected against fair wear and tear guidelines. A missing or late service history can lead to charges, and so can mechanical faults caused by neglect. Skipping services can also affect the vehicle's warranty.
Who decides. Maintenance is an option, not a requirement. We are a credit broker, not a lender, so the packages on offer and their exact terms come from the funders we work with. Ask for the details in writing before you sign.
A worked example
Take a small business leasing a van for deliveries, with two ways to handle servicing.
In the first, it takes the lease with no maintenance package. The rental covers the use of the van and nothing else. When a service falls due, the business books it, pays the garage and files the invoice. If a service is missed, the business may face a charge when the van goes back.
In the second, it adds a maintenance package. The rental is higher to reflect the cover, but scheduled services are arranged under the package. The business still checks what is excluded, such as damage or tyres that fall outside the package, and still pays for those.
Which suits the business depends on how many miles the van does, how much it values predictable costs, and whether it already has a trusted garage.
Related questions
- Does a maintenance package cover tyres? It depends on the package, so check the schedule.
- Can I use my own garage? Often yes if it is qualified and uses appropriate parts, but the funder's terms apply.
- What happens if I miss a service? You could be charged at the end of the lease, and the warranty could be affected.
- Is maintenance the same as insurance? No. Insurance is separate and covers accident and theft risks.
Questions people ask
Do I have to pay for servicing on a business lease?
Yes, unless you choose a maintenance package that includes it. Without one, servicing is your responsibility under the contract.
Is maintenance included in contract hire as standard?
No. It is usually an optional extra. Road fund licence and breakdown cover may be included on some deals, so confirm what each quote contains.
Can I service the vehicle at any garage?
Often you can use an independent garage, provided it follows the manufacturer's schedule and keeps a record. Check the contract first, as funders' rules differ.
What if I don't service the vehicle on time?
You may be charged for it when the vehicle is returned, and the manufacturer's warranty could be affected. Keep to the service schedule and keep your records.