Consumer Protection Law
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You need to give the dealer written notice that they are in breach of warranty and either they replace the seat cover or the entire seat, it is not your issue, but if they fail to do so then they need to give you another car or you will pursue them for breach of contract, as they are making you pay for a lease you are not getting use from. Send a copy to your insurance company as well.
In addition, in your letter, it needs to follow the MA 93A format, for unfair and deceptive business practices, which comes from their inability or refusal to make proper repairs under warranty in a timely manner AND for charging you a monthly lease for a car you cannot use. Here is the sample format for a MA G.L. 93A letter: http://www.mass.gov/ago/consumer-resources/consumer-assistance/93a-demand-letter.html