The short answer: usually you, unless a package says otherwise
With a standard personal or business contract hire agreement, the funder owns the car and you pay a monthly rental to use it. Running costs such as fuel, tyres and servicing are generally left to you. The funder's interest is in getting back a car that has been looked after.
Some agreements include a maintenance package, which can cover servicing and sometimes other items. Depending on the provider, it may be built into the monthly rental, charged as a separate monthly amount, or sometimes paid as an upfront sum. What it covers also varies, so the contract documents are the only reliable guide. Our guide to lease maintenance packages looks at what they often include and when they may suit a driver.
It is worth separating two ideas. Who pays is set by your agreement. What work is needed is set by the car's manufacturer. Even when a package pays the bill, booking the appointments is often still your job.
It also helps to know what kind of agreement this is. Contract hire is a hire agreement, not a loan or hire purchase, so the funder owns the car throughout and there is generally no option to buy it. Business contract hire is not regulated consumer credit, and personal contract hire should not be treated as a credit agreement like a PCP or hire purchase deal. Which consumer protections apply depends on the agreement and the funder, so check the paperwork. Our guide to how car leasing works covers the basic structure.
Servicing to the manufacturer's schedule
Leasing agreements typically require the car to be serviced in line with the manufacturer's recommended schedule. That schedule is set out in the car's service book or digital handbook. It is usually expressed as a time interval, a mileage interval, or both, with whichever comes first triggering the service.
Many modern cars show a service indicator on the dashboard, and some use variable intervals based on how the car is driven. Follow what the manufacturer specifies for your exact model and engine. Do not assume a friend's similar car has the same interval.
Low-mileage drivers can be caught out. A car that covers only a few thousand miles a year can still be due a service on the time interval. Ignoring that because the mileage looks low is a common route to a gap in the history.
- Check the schedule for your exact model, engine and fuel type.
- Note both the time and the mileage trigger.
- Book early enough that the service is not overdue on the day.
- Ask the garage to record the mileage and date clearly.
Warranty and why it matters on a lease
Many new cars come with a manufacturer warranty, though the length and terms vary by brand. Many manufacturers expect servicing to follow their schedule, and a poor service record can give them grounds to question a claim. Read the warranty booklet rather than relying on general advice.
In the UK, an independent garage can generally carry out servicing without automatically voiding a warranty, provided the work follows the manufacturer's specification and uses suitable parts. That is the general position, but your lease agreement may be stricter than the warranty itself, which is why the contract matters.
Warranty cover and lease obligations are separate. A repair can be covered by the warranty and you can still breach the lease by missing a service. Treat them as two sets of rules that both need satisfying.
Approved garages and who you can use
Some agreements require servicing at a franchised dealer or a garage approved by the funder or maintenance provider. Others allow any reputable garage that follows the manufacturer's schedule. The wording varies, so check before booking.
If a maintenance package is included, you will often be directed to a network of garages or asked to book through the provider. Going elsewhere and paying yourself can mean the cost is not reimbursed.
Before using an independent garage, it helps to confirm a few points in writing.
- That the work follows the manufacturer's schedule and specification.
- That the garage will stamp the service book or issue a digital record.
- That an invoice will show the date, mileage, registration and work done.
- That your lease agreement permits non-franchised servicing.
Keeping records
Records are your evidence. At the end of the term the funder may inspect the car and ask for the service history. A complete, dated record makes disputes less likely.
Keep every invoice, the stamped service book if the car has one, and any digital service confirmation. Photograph paper records and store copies somewhere safe. Keep records of any repairs and MOT results too, because they show the car has been maintained.
If a garage closes or changes hands, ask for copies promptly. Rebuilding a history after the fact is much harder than collecting it as you go. For wider inspection issues, see our guide to fair wear and tear on a lease car.
What can happen if you miss a service
The consequences depend on the agreement, but several outcomes are possible. The funder may treat a missed service as a breach of contract. At the end of the term it may charge for work needed to bring the car back to the required condition, and some agreements allow charges for a service not carried out.
A missed service can also weaken a warranty claim, leaving you to pay for a repair that might otherwise have been covered. Separately, a poor service record can affect the car's condition at inspection.
On most leases the funder is the registered keeper, and the registered keeper is the party legally liable for matters tied to the vehicle itself, such as vehicle tax and certain penalty notices. A missed service is not a keeper liability. It is a matter of contract. For the keeper side of road tax, see who pays road tax on a lease car.
Separately, the contract holder can be charged under the agreement for breaches such as a missed service and for work needed to restore the car. Those charges can still be due after the contract ends, for example when they are assessed at the end-of-term inspection or invoiced after the car is returned. Whether a charge applies, and how it is calculated, varies by provider.
If you realise a service is overdue, book it as soon as possible and tell the garage why. A late service is often better than none, and it shows the car has been looked after. Read about what happens at the end of a car lease for how inspections and charges tend to work.
Working out the real cost: an illustrative example
The figures below are illustrative only, to show how to compare paying for servicing yourself with a package. They are not typical prices. Actual costs vary by car, garage and region.
Assumptions: a 36-month agreement with one service a year, so three services in total, at an assumed £200 each. One set of front brake pads at an assumed £120 and one set of front discs at an assumed £280, which together make £400 for the brakes.
Paying yourself: 3 x £200 = £600 for servicing, plus £400 for the brakes, so £1,000 over the term. That figure includes the brakes. A package costing an assumed £25 a month extra: 36 x £25 = £900. The package is £100 cheaper only if it covers all three services and the brake pads and discs. If it covers servicing only, you would still pay £400 for the brakes, so £900 + £400 = £1,300.
This example also leaves out anything else a package might include, such as tyres, MOT tests or breakdown cover. Those items could make a package better value, or you might not need them at all. Brakes may not need replacing during a short term, so the real question is what you are likely to use.
The point is not the numbers. Work out how many services the term needs, what the package covers, which items are excluded, and what you would otherwise pay for each. Then compare that total with the extra monthly cost, and check how the package is charged, whether monthly or upfront.