Leased BMW - possible engine failure 6 September 2022 at 3:54PM in Motoring 14 replies 582 views

RR501

Hi all, 

New to the forum here. Hoping I can get some insights into a predicament I'm currently facing. I have a BMW 4 series (2017) which is currently about to enter it's 5th year of lease (lease is not directly with BMW, but a 3rd party leasing company). The car is of course beyond the 3 year manufacturers warranty and I do not have a service pack or extended warranty on it. 

Last week, my car essentially broke down during a drive. Long story short, it was towed back to the local dealership and they're telling me they aren't too sure what the issue is having done the initial diagnostic. The next step is for them to remove the transmission (at a cost of £2,800!!) and then diagnose that (at an additional cost!). If that's not the issue, they will then proceed with stripping the engine which will apparently be even more expensive. Surely at that point, you start to wonder whether the car is worth repairing? 

I've asked the dealership to reach out to BMW UK to see if there is any goodwill they can offer as this, according to the dealership, is a very rare issue. The car has done 75k miles but 90% of that being motorway driving. It's really well looked after and has been serviced by BMW themselves (including the last service which was only in June). The route BMW is taking me down, I could be spending ~£8,000 on diagnostics and that's before any repairs are actually carried out! Do you feel I have a leg to stand on if BMW decline to offer any goodwill? 

I've also asked my leasing company where I stand if the car is deemed to be a write-off but am yet to hear back from them. Any pointers on the leasing point of view? It could possibly be cheaper to pay any fines/penalties and outstanding amounts to the lease company than to have BMW repair the car. A long shot - but has anyone faced a similar situation to mine? 

Thanks in advance!!

shiraz99

Surely if it is indeed a lease then it's the responsibility of the lease company to sort out. Just speak to them.

motorguy

Not your problem, i'd have thought.  

Leasing = rental.

You've fulfilled your obligation by having the car serviced to schedule.

RR501

shiraz99 said:

Surely if it is indeed a lease then it's the responsibility of the lease company to sort out. Just speak to them.

Yup, have reached out to the leasing company. They said they will have their technical team liaise with the BMW dealership to understand what is going on. Hopefully there are some sensible options available to me! Thanks 

RR501

motorguy said:

Not your problem, i'd have thought.  

Leasing = rental.

You've fulfilled your obligation by having the car serviced to schedule.

Thanks! The leasing company is now aware and will liaise with BMW. Fingers crossed. Will post an update once I hear back. 

macman

What made you think you had any liability for this? There would be little point in paying a large monthly leasing fee if you had to bear the cost of mechanical failures.

RR501

macman said:

What made you think you had any liability for this? There would be little point in paying a large monthly leasing fee if you had to bear the cost of mechanical failures.

Honestly, I didn't even think of reaching out to the leasing company until after I had the car towed 300miles to my local BMW dealership. I don't have the optional maintenance/service pack with my lease so assumed it was on me to sort out. Let's see what they come back with. 

DrEskimo

macman said:

What made you think you had any liability for this? There would be little point in paying a large monthly leasing fee if you had to bear the cost of mechanical failures.

The cost of the lease covers the expected depreciation, not servicing, maintenance and out of warranty repair.

Most lease deals are typically the duration of the warranty period, so out of warranty repairs are not usually an issue. However taking a lease on a car that is longer than the warranty does raise the risk of repair bills.

This was my understanding anyway. Otherwise why would lease companies offer service and extended warranties as additional extras?

Whilst the lease company can deal with BMW, I still imagine any repair costs are the OPs responsibility. Could be mistaken though. OP do you have your contract to determine?

RR501

DrEskimo said:

macman said:

What made you think you had any liability for this? There would be little point in paying a large monthly leasing fee if you had to bear the cost of mechanical failures.

The cost of the lease covers the expected depreciation, not servicing, maintenance and out of warranty repair.

Most lease deals are typically the duration of the warranty period, so out of warranty repairs are not usually an issue. However taking a lease on a car that is longer than the warranty does raise the risk of repair bills.

This was my understanding anyway. Otherwise why would lease companies offer service and extended warranties as additional extras?

Whilst the lease company can deal with BMW, I still imagine any repair costs are the OPs responsibility. Could be mistaken though. OP do you have your contract to determine?

I do have the contract. It wasn't too clear to me. See below an excerpt from the section titled "Use and Repair".

6.1 The Hirer shall:

6.1.1 Use or permit the use of the Vehicle for lawful purposes only, within the United Kingdom and, with ARVAL's prior consent (and ARVAL may charge a reasonable administration

fee plus VAT for providing its consent), for occasional journeys on the Continent of Europe and in the Republic of Ireland provided the Vehicle is comprehensively insured for

such use by the Hirer in accordance with Clause 8:

6.1.2 Not permit the Vehicle to be used for racing or rallying or as a taxi or hire car;

6.1.3 Not permit the Vehicle to be used for towing or any towing equipment to be fitted to the Vehicle without ARVAL's prior written consent such consent not to be unreasonably

withheld;

6.1.4 Not make modifications to the Vehicle or fit or replace any non-standard parts or accessories;

6.1.5 Not paint any words or logos on the Vehicle or otherwise alter the paintwork without the prior written consent of ARVAL and ensure the bodywork is cleaned regularly to

preserve its condition;

6.1.6 Ensure the Vehicle is serviced at the manufacturer's recommended service intervals, and any other occasions when faults arise and will at all times ensure that the tyre

pressures, oil and coolant levels and anti-freeze levels or similar matters are maintained to the manufacturer's specifications;

6.1.7 Ensure that a current MOT test certificate is obtained for the Vehicle when this becomes necessary and will not allow the Vehicle to be used without a current certificate in force

when applicable;

6.1.8 Allow ARVAL to inspect the Vehicle on reasonable notice;

6.1.9 At its own expense comply with and cause all persons operating the Vehicle to comply with all applicable statutory and any other legal requirements, and with all conditions of

the insurance policies relating to the Vehicle;

6.1.10 At its own expense comply with any directions, conditions or recommendations notified to it by ARVAL where ARVAL has received notification that the Vehicle is required to be

returned to its manufacturer in order to rectify a defect.

It doesn't really state anything further on repair or mechanical failure liabilities. 

TadleyBaggie

Many personal leases are "non maintained", i.e. the lessee is responsible for all servicing and repair costs. I have made a similar error by taking out a 4 year lease on a BMW with only a 3 year warranty. Added to that the car was pre-registered almost 6 months before I received the car, so the last 18 months I will be praying the car behaves itself!

RR501

TadleyBaggie said:

Many personal leases are "non maintained", i.e. the lessee is responsible for all servicing and repair costs. I have made a similar error by taking out a 4 year lease on a BMW with only a 3 year warranty. Added to that the car was pre-registered almost 6 months before I received the car, so the last 18 months I will be praying the car behaves itself!

This is exactly my situation. Car was registered April 2017 but delivered to me brand new October 2017. Either way, it's way out of its warranty period for me. Worrying situation for sure.