A leased car runs on two rulebooks at once. The lease, written by the lessor, decides who owns the car, how far you may drive it, what shape it must be in when you hand it back, and when the arrangement ends. A service contract is the second rulebook, written by a different company with its own idea of what counts as a covered breakdown. The job before you buy is to make the two fit, because the places where they disagree are where the surprises show up.
Start with the lease, not the contract
Pull out the lease and find four things: the end date, the annual mileage allowance, the maintenance requirements, and the return condition terms. Many leases require the lessee to keep the car serviced on a set schedule and to keep records. Some name the shops or the type of service they expect. Check whether the lease allows add-on products at all, or whether the lessor must approve them first. Do not assume a service contract is permitted just because it is common.
Line up the mileage limits
A lease sets how many miles you may drive before an overage applies at return. A service contract sets its own maximum vehicle age and mileage at purchase, and it may also end coverage at a mileage point. These are two different numbers. Find both in writing and ask which one you will reach first on the trips you actually make. If the contract's limit runs past the lease allowance, the contract may stay useful right up to the lease end. If it runs out sooner, you will be paying for coverage on miles you can no longer use.
Match the term to the lease end
Contracts run for a set length measured from a start point the contract states. If the lease ends before the contract term does, you are buying coverage on a car you will not keep. Ask what happens to the unused portion: whether it is refunded, how the refund is calculated, and whether it goes to you or to the lessor. Ask also what happens if you end the lease early, because an early return changes the match more than the scheduled end does.
Ask who the contract names
Service contracts are usually issued to a named buyer. Check whether the contract names you or the lessor, whether the lessor appears as a lienholder or other party, and whether the contract can be transferred if you buy the car at lease end. A contract that cannot move with the car gives you nothing after the purchase. Put these questions to the provider in writing and keep the answers with the signed copy.
Check the return condition against the exclusions
Lessors inspect for wear beyond normal use, such as worn tires, brake material, body damage, and interior damage. Service contracts commonly exclude wear items and damage from neglect or accidents. The two lists overlap at exactly the points that matter at return, so read the contract's exclusion section next to the lease's wear guide. The goal is not to find coverage for wear, which many contracts do not provide. The goal is to avoid assuming a contract will carry a repair the lease charges you for at return.
Keep the records both documents ask for
A claim is easier to pay when maintenance is documented, and a lease return is easier to pass when the same records exist. Keep each receipt with the service date, the odometer reading, and the shop name. Keep the signed contract and the lease maintenance clause in the same folder. If a shop is not one the lease names, confirm that the contract allows that shop and that the lease accepts its invoice.
Questions to ask before you sign
Ask the provider whether it accepts leased vehicles at all, whether the lessor must consent, and whether the contract can be transferred at lease end. Ask how the mileage limit is measured and whether the reading can be checked against the lease odometer record. Ask what the cancellation terms are if you return the car early. Ask who handles claims and where the car is sent for repair.
Compare on paper, then read the contract
This site publishes contract terms in its own tables, so you can compare term length, mileage limits, and cancellation wording across providers in one place. Use them to shortlist, then read the actual contract, because a summary is not the contract. To see how the comparisons are built, read How We Score Vehicle Service Contract Companies. For a term-by-term view, see Vehicle service contract companies compared, term by term, and for providers that let you read a sample first, see Vehicle service contract companies that post a sample contract you can read first.