Warranty Disclaimers in Equipment Finance Leases
The finance company disclaims every warranty — so if the equipment fails, your only recourse is the manufacturer.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not legal advice.
Overview
In an equipment finance lease, the lessor is a finance source, not the maker of the equipment, and disclaims all warranties — express and implied. This pairs with the hell-or-high-water clause: you pay regardless of defects, and you chase the manufacturer for them.
Understanding how warranty rights flow is essential to avoid being stuck paying for broken equipment with no remedy.
Topics to check
Lessors disclaim the implied warranties of merchantability and fitness, stating the equipment is leased "as-is" from the finance company’s perspective. Under UCC Article 2A, a true "finance lease" passes the supplier’s warranties through to the lessee, so the lessee’s warranty rights run against the manufacturer or vendor, not the lessor.
Confirm the agreement qualifies as a finance lease and that the supplier’s warranties are actually assigned or passed through to you.
UCC § 2A-103 — Definitions: Finance Lease (Cornell LII)Because you must keep paying the finance company no matter what, a broken machine becomes your problem to resolve with the manufacturer while the payments continue. If the manufacturer warranty is weak, expired, or hard to enforce, you can pay for equipment you cannot use.
The warranty disclaimer and hell-or-high-water clause together are why pre-acceptance diligence is so important.
Before signing, obtain and review the manufacturer’s warranty, confirm it is assigned to you, and check its term and coverage. Inspect and test the equipment before acceptance, and consider a maintenance or service contract for critical equipment.
Do not rely on the finance company for any performance assurance — it has disclaimed all of them.
Key takeaways
- The finance lessor disclaims all warranties — express and implied.
- In a UCC finance lease, supplier warranties pass through to the lessee.
- Your recourse for defects is the manufacturer, while payments continue.
- Confirm the manufacturer warranty is assigned, current, and enforceable.
- Inspect and test before acceptance; consider a service contract.
Official resources
Legal-review notes
Guide confidence marker: Medium confidence.
- Warranty pass-through depends on finance-lease status under UCC Article 2A as adopted in your state.
- Confirm the assignment and enforceability of manufacturer warranties with counsel.
Frequently asked questions
Why does the finance company disclaim all warranties?
Because it is a finance source, not the maker of the equipment. In a UCC finance lease, the supplier’s warranties pass through to you, so your warranty rights run against the manufacturer or vendor — not the lessor.
What happens if the equipment is defective?
You typically must keep paying the finance company (hell-or-high-water) and pursue the manufacturer under its warranty. If that warranty is weak or expired, you can be stuck paying for equipment you cannot use — which is why pre-acceptance diligence matters.
How do I protect myself from the warranty disclaimer?
Get the manufacturer warranty in writing, confirm it is assigned to you and currently in force, inspect and test before acceptance, and consider a maintenance/service contract for critical equipment.