The top-up package, which adds two years' cover that is identical to the first-year unlimited mileage warranty, is estimated to be worth £400-£500 per vehicle during the lease period.
Derick Perkins, of Fleet Management Services, operates a fleet of more than 3,000 Peugeot models. He believed the carmaker had reduced its maintenance costs more successfully than any other major fleet manufacturer.
“The warranty extension seals the perception of a manufacturer steadily improving its mechanical integrity,” he said.
Peugeot's three-year retail warranty product is manufacturer-backed for the first year, with no mileage limit. Dealers provide the subsequent two years' cover up to 60,000 miles.
The agreement means the warranty does not need to be rolled-out across Europe, according to one industry source, since under EU rules, if Peugeot had extended its warranty to a manufacturer-backed three years, it would be forced to launch a similar product to its European customers.
The cover, exclusive to the UK, is free of charge, but is only valid if customers use franchised dealers for the service and maintenance work.