Is it better to buy or lease a new car? | PCP VS LEASE VS HP VS CASH
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- čas přidán 6. 03. 2023
- Is it better to buy or lease a new car? | PCP VS LEASE VS HP VS CASH
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Remember, I am not a financial advisor! always do your own maths before buying, leasing or entering into any kind of finance agreement.
In this one we look at weather it's cheap to buy or lease a car and compare the differing types of finance options available (PCP Lease Purchase, PCH Contract Hire Leasing, HP Hire Purchase and of course good old fashioned cash purchase).
Car finance can be a bit of a minefield and is often subject to pressure sales techniques so I hope this helps clear some of the most for some of you and helps you see how I do the calculations to help try to make the right decision.
The numbers will look very different in every case so PLEASE run the numbers yourself on any deal you are considering.
#carfinance #carleasing
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Important : This channel tries to deliver honest advice for real people. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.
All music used in this video is written, recorded, and produced by me.
𝙋𝙡𝙚𝙖𝙨𝙚 𝙡𝙞𝙠𝙚 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚! ;) - Auta a dopravní prostředky
For comparison. I’ve just finished a 2 year lease on the same car, albeit a coupe. 2 year deal, £349 down and £349 a month. This was with a loyalty discount.
Nice
Great explanation my man! The 'real' costs bit in second half was particularly useful. Will come back to this channel for other advice in future, keep up the good work.
Glad it was helpful!
I’ve been looking forward to this video looking at the whole mix of ways to buy well done not seen this anywhere else :-)
There are a few more of these in the back catalogue
Description excellent description as ever Jim. . Keep up the good work 👍.
Many thanks!
Thank you for a great summary on the financial products available..
Thanks
Fantastic video! The first time I can understand and see the value in leasing rather then ownership! Brilliant thank you
Leasing isn’t always the best option but it often can be a good one. For me it’s peace of mind that you know the numbers from the outset, especially when the car market is as volatile as it is at present.
Great information as usual Jim
Thanks 👍
Great video. You’re doing content i’ve not seen anywhere else. There’s one more option i know of but you couldn’t do a video like this on it because it’s down to luck in a lot of ways but taking over someone else’s lease is the cheapest way i know of. There’s some amazing bargains to be had that way on some of the lease sale sites but it’s just your luck what’s available and what incentives the current lease holder is adding to sweeten the offer
Which sites are you looking at for that Craig?
It would be great if you could do a video comparing leasing a new car Vs buying a used 3/5 year old car and cost of ownership depreciation at the end of a 3 year typical time frame … I love your content and appreciate your channel 😊
Thanks Richard, I’ll probably get there. I have done one before but the used car was 2 years old I think.
@@DefinitelyNotAGuru I leased a $50k Merc coupe in the US for $280 per month including maintenance and 15k a year milage with $1600 down it was so cheap!
UK is much different...
I decided to buy a 2013 Lexus RX450h for £16500 , sold it 3 years later for £11,750 , I guess if I was to lease a new one it would cost as much as the car purchase, but some lease deals are good ..
@@richardburke952 I’ve always been a amazed by prices in the US. I remember years ago seeing a new Range Rover in a TV ad for like $25k less than in the UK despite it being made here. Also a 2.3 mustang about 30% less than a 1.6 Focus here. Exchange rate was better for us then to be fair though.
👍👍👍 Interesting, Thank you Jim.
Glad you enjoyed it
Vids are absolutely brilliant, would and have recommended friends and colleagues to view before entering the minefield this is replacing your car.
Much appreciated 🙏🙏🙏
Another very informative video, thank you. It took me back to the early 90’s working in a bank when a young man came in for a car loan. Turned out the money was actually for his girlfriend’s abortion!!! Another time a customer came in and asked for the loan arranger to which the bank clerk replied he’s not available but you can speak with Tonto. The customer didn’t get the joke.
Wow!!
Great video Jim. I've done the same calculation for an X Trail over 3 years, the lease total is the exact same as the cash amount (roughly £20k for both) . The PCP and HP offerings are around £8k more, I guess due to the high interest rates or the lease deal just being really good
Good stuff!
Great video
Thanks!
very well explained Jim! i was wondering if I would get the option to purchase my car at the end of the lease agreement, and will most definitlye ask out of curiosity. top work dude!
Cheers Tom 👍
really useful, thanks, would be grreat if you do this and add salary sacrifice as an option , although I guess only makes sense for an electric car
Yes Matt, Salary sacrifice seldom makes sense unless it's an EV as company car tax is painful on anything else.
Cheers Jim. First Direct do an online loan calculator, for future reference.
👍👍
Hiya !! Thanks for such an informative video. I am a car novice and this was quite handy for me. The comparison of cost is so highly driven by the PCP interest rates. Currently Audi is offering around 13.4% as interest which makes PCP way more expensive than cash buy. Is there any tool/website that can help me understand the future valutation(approx) of the car that I am trying to buy ? Thanks.
Hi, thank you! It’s really tough; to be honest I don’t trust any predicted values anymore as the market is incredibly volatile and with disrupters like Tesla in the market it only adds to the volatility of pricing. Sorry - I realise that’s no help…thanks for watching and commenting, Jim
Good video - on the PCP example, sorry can you explain where the customer is getting their £5K equity from? If they put in £1,292, plus 35 payments at £710 meaning they've sunk £26,142 in after 3 years - the car estimated worth was £26,190, so they've come out about net on the value of the car at 3 years old versus what they've put in. Sorry I think I'm missing something - where's their 5k equity? Thanks
I’m sorry mate but this video is around a year old I think. I’m old so don’t remember it too well and It’s my birthday today so I’m not going to watch myself back to answer it. From the comment though I would guess that the equity would come from you settling the finance at the end of the initial period and then selling the car😁
Jim if I am offered to purchase my vehicle when my lease ends,would that be a better option than buying from a dealership?
It all depends on the price and they don't often offer an amazingly good price (and you often have to ask for it rather than wait to be offered). The great thing is that you know the car, unlike the one at the dealership.
Can you next look at say a 5 year period on the next one too? Also, may be worth including other expected costs, servicing , yearly tax etc, esp on higher value car where this can be £500 pa … nice stuff otherwise ! 👍
Hi Harry, it's only really HP that people do over 5 years so can't really do a comparison video. Aside from tax, the other costs would be the same for everyone (they all need to be serviced etc).
For this exact same car I get an NHS deal ( only cash or PCP) 35,000 cash or 41,000 with the same deposit as ur video
Would it still be better to lease ?
Sorry I’m horrible with numbers
Cash or lease would be roughly the same for you in that case. The only thing with cash is you’re putting down a big chunk that could be earning you money and if used prices crash then you will feel it more than if you had leased.
I need to get Gap, will get a quote and use your code.
Get the quote online, then if the price looks good you need to give them a call to use the code as the website doesn't currently have a discount code section (it's coming soon!).
Would like to see more like this but doing cars of a value around 20k.
ok, same rules apply really
Me again. I’m hearing about something called ‘ conditional sale facility’ have you done a video about this method of buying a car thanks
It's another term for Hire Purchase
Also lease includes road tax
Yes, I did say that in the video mate 👍
@@DefinitelyNotAGuru sorry missed that
@@mhewitt991 no worries 😉
If you have cash and use PCP you will get some interest on your balance also in three years the car will be worth more Pound Notes due to inflation in comparison to today's value for a 3 year old car.
The car will be worth more? No
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Gracias
Can’t do with all the ads on this channel
Ok, bye x
Ads in this episode are horrendous, I’m to skint for premium 🤦🏼♂️
Thanks for watching 😎
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