Car Finance Explained (UK) - BUY VS LEASE - 5 Ways to SAVE MONEY.

The hidden secrets of car finance and valuable car buying tips is here. Are you torn between leasing and buying a new car? Look no further, as we present five compelling reasons why leasing might be a smarter and more affordable option.
Top benefits of leasing a car: bit.ly/3AXO6Pt
Leasing vs PCP vs HP: bit.ly/3VC0axL
Figures on average savings from Leasing.com research: bit.ly/3Uf1plp
Reason 1: Lower Monthly Payments - Discover how leasing allows you to enjoy a brand-new car without breaking the bank, thanks to lower monthly payments compared to financing a purchase.
Reason 2: Minimal Down Payment - Learn how leasing often requires a smaller initial down payment, freeing up your finances for other important expenses or investments.
Reason 3: Warranty Coverage - Explore the advantages of leasing, such as benefiting from full warranty coverage throughout your lease term, which can save you from unexpected repair costs.
Reason 4: Avoiding Depreciation - Find out how leasing shields you from the financial impact of vehicle depreciation, allowing you to simply return the car at the end of the lease term without worrying about its resale value.
Reason 5: Enjoying the Latest Models - Discover how leasing gives you the opportunity to drive the latest car models and experience cutting-edge technology, without the long-term commitment of ownership.
PCP (Personal Contract Purchase) and Lease are two popular options for acquiring a car, each with its own advantages. In a nutshell, PCP allows you to finance a vehicle with the option to buy it at the end of the contract, while a lease involves renting a car for a fixed period.
PCP provides flexibility, as you can choose to purchase the car or return it at the end of the contract. It often involves lower monthly payments compared to traditional financing, making it appealing to those who want to upgrade their vehicle regularly. However, it typically requires a larger upfront deposit, and the overall cost can be higher due to interest and fees.
On the other hand, leasing offers simplicity and affordability. You can drive a new car without the burden of ownership or worrying about depreciation. Lease payments are often lower than PCP and include maintenance and warranty coverage. However, you won't own the vehicle at the end of the lease, and there may be mileage restrictions and wear-and-tear charges to consider.
Choosing between PCP and lease depends on your preferences and financial situation. PCP is suitable if you desire ownership flexibility and are willing to pay more in the long run. Lease is ideal if you prioritise low monthly costs and enjoy driving new vehicles without the commitment of ownership. It's essential to assess your needs and consult with experts to make an informed decision that aligns with your lifestyle and budget.
Key moments:
00:00 - Introduction
00:20 - How much cheaper is leasing vs PCP and why?
01:20 - Leasing gives you more control vs a PCP
02:15 - Less faff with leasing
02:48 - Leasing gets you the latest tech

[@leasingdotcom]

FUN SURVEY: ARE YOU PCP - LEASE - CASH - HP - A CYCLIST?

[@homersrevenge3691]

Buy in cash will save a fortune and you can also keep your car if you sadly loose your job.

[@ianedmonds9191]

And you can have many years of extremely cheap motoring. I've had 2006 BMW Z4 for the past 7 years. Maintainence costs have been fairly minimal and the mileage is still under 100k miles. My last six cylinder BMW made it to 140,000 miles before I sold it. Buy a nice well looked after fun car and run it for years. If you never drive anything more modern you won't miss a thing. Luv and Peace.

[@martynfletcher1084]

I agree. We don’t do many miles so although we’re tying up cash, we can keep the car longer and have the security of having it no matter what happens. We bought a 4 year old BMW 5 series touring with 68k on the clock but we do less than 5k a year so although we bought it with higher mileage it will even out once we’ve had it for 2-3 years. That’s my logic anyway. 😂

[@josepheveson6187]

Disclaimer - you need a fortune to save in the first place.

[@homersrevenge3691]

I think cars fall into two categories need and want. The cars you need if you can’t afford it because of circumstances can be financed, but keep to cheap and the need. The car you want ie high end, buy outright then you will be winning…..it doesn’t need to be new that’s the most expensive way ever to buy a car. Anyway just my opinion and life experience from winning and loosing at things, each person has to make their own decision. PS. I now own 2 Porsches

[@kolonizednetworks]

@@josepheveson6187Facts

[@chrism8705]

Paid cash three year old car in 2012 still have it only done 55 thousand miles runs great

[@JollyRoger17]

Who would have guessed a leasing website recommends leasing, I was also shocked that the Pope was catholic…

[@je6874]

Exactly 😂

[@domaindave2422]

What a lot of people don’t realise is that most new cars cost less to lease than they actually lose in value! Also, running a new car, with “road tax” included, better safety and lower running costs than an older car can make the overall cost of driving a new car lower than driving an older one. Almost always cheaper that a PCP on the same car. 👍 Great video and I’d always use this site to compare the best deals

[@rodrigoms75]

We chose pcp for the first time in 2021, got a car from 2018 around 20k, on 36 monthly payment. It was a 10k miles/year contract but we already did in average 14k miles/year Purchase payment at the end will be around 5k. Probably we will try leasing next, as one of us have company’s car benefit. Excellent video, well done.

[@peterarmstrong3853]

When I purchased my BYD dolphin on finance it was £75pm cheaper than on lease with the same deposit. With my finance I will pay it off in 3 years and I pay a little extra to change the payment structure. Oh and the car is in my name. Also the wheel and bodywork protection was all in the deal. 👍 Also the dealer will give me a good deal when I trade up to the seal.

[@roppa789]

It would be more interesting if you actually showed your figures ie. deposit, term, mileage, future value/balloon. To pay off a £30000 car in three years and try to compare it to leasing takes some stretch of the imagination. On all the leasing sites, electric vehicles are expensive compared to a lot of similar ICE cars. We can check online on BYD Dolphin dealerships 10000 miles, £3200 deposit, 36 x £329 and then a £19000 future payment. (Estimated future value from web site £22000) Leasing the same car/mileage/deposit/term cheapest I found was again £329. Leasing you don’t get your additional benefits at the front end but neither do you have worries about valuation or being tied in with balloon payment. You’re happy with your deal and that’s a bonus but it’s each to their own to do some homework. I’m coming to the end of my lease on a high spec Merc A class (list price at time £33000) that was on special offer 48 months x £302 with no deposit. I’ve never needed to give depreciation or bubble payments a second thought.

[@peterarmstrong3853]

@@roppa789 I completely agree. I cover 20k a year and some lease deals really lock you in when it comes to cancel the lease but with a dealership it can be very flexible which I have experienced. It took me months to research but I guess it's down to the dealer individual especially when it comes to credit ratings.my future payment was £11000. Also I received £2500 off the list price so an even better deal.

[@philspencelayh5464]

I've done the sums many times and I can't make leasing cheaper. Buy new and keep it until its done it will save a fortune.

[@Iamneverright]

Thanks for the info. Nice one

[@georgebutts4734]

What about the milage limits and any bodywork damage when returning a leased car?

[@RobWeb_1]

Interesting. Good work 👍

[@DanceandLaugh]

Really good video, I was thinking of buying and in fact was going to put my deposit down at the Mercedes garage on my C-Class. After this, I shall be leasing one instead. Very informative

[@malinka511km]

This is why i am going to lease my third car soon😊

[@Sly_Wolf_1]

And then when you can't work which means you don't earn...... You have to give it back and be carless😭 Fortunately whilst covid turned my life upside down and fooked me right up with long covid too, I still have my car and van because when I was earning I bought them outright, and now nobody can take them away.

[@happyhero1093]

What if you had a mortgage at the time? what will you do

[@Sly_Wolf_1]

@@happyhero1093 I did have a mortgage at the time and still do. Dog upkeep, mortgage, gas, electric, council tax are my priority bills, everything else can wait. Fortunately I own my car and van so if things become totally unpayable me and the fur kids always have somewhere to sleep, no lease company will be reposing them.

[@happyhero1093]

okk i understand @@Sly_Wolf_1

[@bigbear187uk]

Curiously some PCP instances can be cheaper. I've just discovered this with a Skoda Kodiaq VRS - largely because it has a substantial Skoda incentive (£6.5k). Having said that, the car market is still a funny place at the moment

[@gordonwilson1631]

Who is paying to service the apparently benign balloon payment? Have a guess.

[@AB-oc7de]

Total crap always buy never rent , 9out of 10 people are thick when it comes to money.

[@leasingdotcom]

Was that an official survey? 😂

[@domaindave2422]

“If it appreciates, BUY it. If it depreciates LEASE it” Wise words from billionaire oil tycoon John Paul Getty. There are always exceptions, usually the top and bottom of the car market, but I’d agree with this.

[@sossiepie2243]

​@@domaindave2422 totally, if we're talking about lexus, honda, or even porsche, it's always Better to buy as they Last longer than something like a bmw or mercedes which even though are more fun, lose value rapidly

[@Sly_Wolf_1]

@@domaindave2422 Paul Getty..... wise words from a billionaire who wouldn't pay his own grandsons ransom. When you're a billionaire you don't fear making your next lease payment, average Joe who works a "normal" job will lose his "prized" lease possessions once unemployed. At least when a car is on hp they cannot repo once 2/3 of it is paid (or least that's how it used to be) I like security not uncertainty. Security in the knowledge that if my money runs dry I won't lose my car, so what if I cannot keep up with the neighbours and change it every two or three years. My neighbour was king of the hill with his and wifes new car every two and three years respectively. Then he lost his job, didn't take long for the two motors to go and be replaced with a 12 year old ford galaxy people carrier. Boy did he lose his swagger.

[@cliffordparry2862]

PCP, Lease Purchase all have interest loaded which no doubt compounds. The interest cost alone is staggering over Four Years and you still don't own it. What he forgets to mention is that when the pcp ends you have money to find, and as we have seen interest rates and car prices increase your money is going to get you anything like what your driving, and the fur coat and no nickers brigade are soon whinging for more money. Drive what you can afford. Leasing is popular with Business because VAT can be reclaimed, tax allowances and needed vehicles.

[@ianedmonds9191]

Who leases their smartphone? I've never heard of that.

[@caio5987]

I think he meant people who get their phone on a contract rather than buying it outright

[@lindaj5492]

Please don’t assume your viewers understand the acronyms you use. PCP? Looked it up but still don’t understand how it works.

[@erfgoedgidsveenhuizen]

Stop this.

[@dawnbarron5403]

ᎮᏒᎧᎷᎧᏕᎷ 😣