0% CAR FINANCE VS LEASE | Car Finance Comparison | Surprising Results

[@DefinitelyNotAGuru]

✅ 𝗟𝗲𝗮𝘀𝗲𝗟𝗼𝗰𝗼 : leaselo.co/notaguru-car-leasing 💻 𝘾𝙖𝙡𝙡 𝙈𝙚 : www.notaguru.co.uk/book-a-call

[@philiphidson1007]

Thanks Jim - love the channel - These videos are really helpful. I was always an old school cash buyer or cash plus bank loan. Currently own my car outright (EV) but finding myself attracted to new models all the time. Sensibly i will keep my current car for a while yet but i can see the lease option as a very good one as every couple of years you could basically try a new model. Everything costs but as you said on another video if you shop the deal not the car there do seem to be some mega value lease deals around.. Cheers

[@DefinitelyNotAGuru]

👍👍

[@michaelhayes9975]

5% interest p/a is a relatively recent phenomenon! Interest rates on savings have been pathetic over the last few years so you would have to make sure you applied these calculations on real numbers relevant to the current bank rates. I suspect if you ran these spread sheets three years ago you might come up with slightly different conclusions but the logic is clear enough and it’s always worth looking at the alternatives before parting with your hard earned cash. Some leases apply mileage limits too so if you do a lot of them this could also be a factor. Something else missing here is the hand back costs that most leasing companies try to apply at the end of term. They expect a perfect car to come back to them and will add some hefty penalties given les than half a chance. Good video all the same.

[@DefinitelyNotAGuru]

If it’s not for you that’s cool. End of leasing charges are nothing close to the bad old days; fair wear and tear is allowed and guidelines very clear. All leases apply mileage limits as do many PCPs. This video was made about the here and now; it’s not telling you to lease a car, it’s suggesting that you do all the numbers before signing on the line for anything. Many blindly buy take finance for all the wrong reasons.

[@derrickgreen2903]

After listening and looking at the numbers, leasing is definitely worth looking at.

[@DefinitelyNotAGuru]

It’s not for everyone and is always deal dependent but it’s served me and my family very well over the years.

[@robertmacintyre8065]

Great video again, Jim. Started my first ever lease last year & don't think I'll ever change from that now. 👍

[@DefinitelyNotAGuru]

👍👍

[@robertmay7331]

I really like these case study comparisons between Lease, PCP & cash (or independent loan). Id like to see more of these, especially on examples' where the cars have really good lease deals, just to see the real benefits.

[@DefinitelyNotAGuru]

I’ll be doing one of those soon

[@richarddixon6354]

Another great video. Amazing how some companies make their PCP or loan look good but there is always something hidden.

[@DefinitelyNotAGuru]

Not every lease is a great deal either but I just hope more people do the maths before they sign up to whatever they’re being offered.

[@robsmith1a]

Great video. Not many people take into account the interest they lose by tying their money up in a car.

[@DefinitelyNotAGuru]

👍 I only added that point t as a last minute thing and it seems to have been a controversial addition. I really just wanted to show people that 0% finance is not always a great deal 😂

[@robsmith1a]

@@DefinitelyNotAGuru I took that into account when working out the payback time on my solar panels. It added a couple of years!

[@rjhw99]

Great video and it's definitely how I would be weighing up the options. One small quibble - the opportunity cost of the cash purchase is not 5% of the whole cash purchase price, but the difference between the discounted cashflow profile of the cash purchase vs the cashflow profiles of the other options. The actual opportunity cost will likely be a fair bit less, especially after tax on the interest.

[@DefinitelyNotAGuru]

Yeah I’ve answered this in some other comments. It’s very long winded so I won’t repeat it.

[@simonfisher4154]

Great video as always Jim. But this only works if you want to buy a new car. What if like me you want a 2nd Hand Car.? What are my options then? Thanks for any replies!

[@DefinitelyNotAGuru]

If it’s a nearly new car then you should still compare it against leasing (no MOT, no VED, full warranty etc). I’d personally always do the calcs on every option before I signed up to anything on anything so always shop around for loans or HP - don’t just take what the dealer is offering you without running the numbers and seeing what else is around 👍

[@mikadavies660]

Having leased a Citroën E-C4, I can say that I'm super happy with paying £265/mth.... For that amount I get a new car, with full warranty and I don't have to think about vehicle devaluation.

[@DefinitelyNotAGuru]

Great to hear!

[@paulreynolds9003]

How much deposit did you have to pay first.

[@mikadavies660]

@@paulreynolds9003 £1100

[@Wigwamwish]

How much did you have to pay upfront?

[@mojitosteele1213]

The kicker for me is having to save up for a deposit for another car after the 3 years. You might aswell factor in an additional £100/month for saving for the deposit.

[@simonfisher4154]

Thanks, Yes in the process of doing that but it’s so complicated and frustrating. Nothing is ever that easy to work out. Thanks and best wishes,

[@DefinitelyNotAGuru]

Too true! Feel free to book a call if you need me to confuse matters even more - or maybe even help a bit 🤞😁

[@jasonsweb1]

after watching multiple videos of yours and others, im 100% going to lease a new electric car.i wouldnt consider buying a brand new electric.just going to wait until GAP is available again. citreon ec3 or kia ev2 or tesla model 2 is what im after,i do love the peugeot e208 and almost had one a few months ago but dealer wanted too much monthly on pcp and you had put me right on lease so i new i could get it cheaper and walked away,then GAP was canceld and put me off altogether.

[@DefinitelyNotAGuru]

👍

[@marvinsamuels1237]

Useful info as usual Jim. It's certainly made me reassess how we will finance our next car. Keep the videos coming. 👍🏾

[@DefinitelyNotAGuru]

Thanks Marvin, appreciate your support and, yes, will do!

[@br164]

As much as I like the idea of a new car, I can never make it make sense regardless of whether it’s PCP or lease. Buying an approved used car 3 years old with 30k miles, with a 12 month warranty always seems to win. Even accounting for maintenance.

[@kph1034]

As I'm now passed retirement age but still work part time I think I may go this way. Looking at a Kia 3 years old so I'll still get the remaining 4 year warranty and save me £350 a month.

[@br164]

@@kph1034Yes, better still if you buy a brand with a 5/7 year warranty

[@DefinitelyNotAGuru]

A 3 year old used car needs MOT's will need part replacements and warranty runs out after 12 months or gets expensive. It's like comparing apples to oranges really but as always, the only right thing to do is whatever makes you happy and fits your needs the best.

[@DefinitelyNotAGuru]

My Father in Law got his first lease at 72 years old.

[@chrishart8548]

​@@DefinitelyNotAGuruI think we have reached the point where owning the car is a myth. They all fail eventually. The older the car the closer to the end of its life it is. If you do choose a brand new car. It has new tyres, new brakes, new clutch, All new bearings and bushes, all of its warranty. New belts and chains. An older car is just the balance of whatever usability is left. It's not the same thing just a bit older.

[@ricardo-iw9sq]

Bangernomics worked 15 years ago when cars we fixable without bloody sensors everywhere, modern cars are supposed to be better and more reliable but if you get one with every electric gadget then expect the garage to have it more than you. I've never done loan or lease because I've saved and kept the car for 7 years then traded it in but with the tech on new cars then lease sounds good and just accept its lost money but it's for a need.

[@DefinitelyNotAGuru]

Lost money can look like saved money in a certain light eh! 👍

[@ricardo-iw9sq]

@@DefinitelyNotAGuru leasing is like renting, it's dead money in the long term but it fits a need. A new car if you keep it 10 plus years is a good investment as you don't lose the depreation like people who have a car for 2 to 3 years.

[@DefinitelyNotAGuru]

It’s a different school of thought that I don’t disagree with but a car that you buy is fundamentally a depreciating asset that costs you more each year it gets older (often) - its more of a gamble perhaps than a regular fixed cost. I could never say one is better than the other as they’re too different to really compare. Ideally you’d buy a car, keep it 10 years, it would never go wrong and not loose too much cash, I’ve just never been so lucky 👍

[@chrishart8548]

​@@ricardo-iw9sqall money on cars is dead money. Even as a classic keeping the car in the right environment with all the needed maintenance is expensive.

[@DefinitelyNotAGuru]

100%. Although when you think what it saves you in taxis and public transport costs (if that’s even an option where you live) it looks a tiny bit rosier.

[@Number1HeadlightRestoration]

Well done again, Jim. You make your point very well indeed 👌🏼👌🏼

[@DefinitelyNotAGuru]

Thanks Mark 🙏

[@chrisbarrow9909]

Got to remember you can also buy the lease car i find lease cost plus final purchase is cheaper than buying it.

[@DefinitelyNotAGuru]

👌

[@williamfence566]

Years ago was told " buy at 2 then sell at 5" ( that's years old ). At 2 it's lost most of it's highest % depreciation but is probably still low mileage and in warranty. At 5 years you've had the use and high maintenance bills are round the corner so PX before it's starting to mega cost. Not quite the same now as new car shortage meant at 2 years old the car is still pricey but the 3 year cost per mile still works. Maybe buy at 3 sell at 6 now applies?

[@DefinitelyNotAGuru]

Buy at 2 and sell at 5 isn’t a bad shout

[@steffydog]

Not sure those figures stack up tbh, but a great video as always, thank you.

[@DefinitelyNotAGuru]

I am and they do.

[@nikboseley5117]

Excellent comparison Jim..top man

[@DefinitelyNotAGuru]

Thanks

[@MichaelAdamsLeeds]

I'm stuck at the point of trying to make 5% on £28k add up to £3600. Even ignoring any compounding, it's £1400 a year, so £4200 🙃

[@gavjlewis]

I guess most people with savings won't blow the whole lot on a car. They are also likely a higher rate tax payer so only have a starter savings allowance of £500 per year. So presuming they don't have any other savings (they almost certainly do). Then if they are not using an ISA (because they filled it up) then it's likely not a huge amount over £1k after tax. For many not saving up the cash in the first place makes the most financial sense (presuming it's come from employment) when you would be better off investing in your pension and leasing your car.

[@DefinitelyNotAGuru]

Trying to factor in something for the opportunity cost lost on payments and in reality you'd get hgigher than 5% - just trying to keep things simple for those without knowledge or a chartered accountant on tap.

[@BiteSizeWoW]

I kinda feel like getting a 3 year old used car on HP finance is pretty much the best bet.. ? you skip the depreciation, pay pretty much what youd pay monthly for a brand new lease which i guess is the downside you have a ''3 year old car'' not brand new, but then you can sell it on at the end and get most of the money back

[@DefinitelyNotAGuru]

Depreciation is still large at that age on many brands and modern cars benefit from a full manufacturers warranty.

[@johnmackay7789]

I've been seriously considering going self employed, this will obviously require me to get a medium sized van. Could all this that you are explaining be used in getting said van? I'm just not sure what's the best to do. Thanks

[@DefinitelyNotAGuru]

Yep. Lease deals on vans tend to be less exciting than cars generally but leasing one is still a decent option.

[@stephencollins7714]

Don’t forget to factor in tax on the interest when calculating opportunity cost. Great comparison though, very enlightening.

[@DefinitelyNotAGuru]

👌

[@glengosling5636]

Another great show, keep it going,

[@DefinitelyNotAGuru]

Thanks, will do!

[@Simonr75]

Very happy with my brand new mokka.. £260 a month and £750 upfront...3 year deal. Dealer wanted £299 a month with £2000 upfront for a 2 year old mokka on a 4 year PCP and i definitely dont have £20k+ in the bank to be able to pay cash. I'm happy with the deal i have and that's the main thing.. 👍

[@DefinitelyNotAGuru]

👍

[@killbit01]

How come the deposit was that low? Where did you get this deal from?

[@Simonr75]

@@killbit01 because I chose low upfront cost...came through leascar uk. Still some good deals on the mokka just not as good as I got.

[@maff257]

Yep, very unlikely from my experience to give much of a discount on 0% finance. Of course they are willing to on 7.9% APR as even if they give you 15% off upfront they are still making that 7.9% on what you've borrowed per year. This is why 4 year PCPs which the German/Premium manufacturers seem to love are poor value, huge old lump of interest and a year without warranty! I will certainly be looking at leasing next year and possibly wish I had when I changed cars last year!

[@DefinitelyNotAGuru]

Yeah does seem like bad darts doesn’t it?

[@jasonshaw1628]

Good comparison Jim- thanks 👍

[@DefinitelyNotAGuru]

No problem 👍

[@briandews2698]

Absolutely spot on Jim 👍

[@DefinitelyNotAGuru]

Thanks 🙏

[@chrisduffill5248]

Fully agree except for interest is also taxable after Which ever tax bracket you are on that needs to be deducted as well… So all else is true and good , many thanks for doing this

[@DefinitelyNotAGuru]

👌

[@johnharvey1786]

The only issue I’ve had with leasing is the overly fussy inspection at the lease end where they price very minor issues at very high figures. I know there is a booklet listing what constitutes a fault but they stretch this significantly so minor scratches or stone chips become a major and expensive issue. it becomes a difficult and uncomfortable argument. The only way I’ve got round this is to bring this into the deal to buy or lease another car and the dealership suddenly revalues these issues. The dealership will always say the inspector is from an auction so it’s totally independent but it’s not.

[@DefinitelyNotAGuru]

I assume that was a few years ago? my recent experience with returns has been great. When our Touran went back I actually left some pretty bad damage as they only charged £250 whilst a local repairer wanted £600. The booklet is very clear on what is and isn't acceptable so shouldn't really leave any grey areas - I say get the car really clean and photograph everything. If you're not happy with the inspection just challenge it.

[@1gmh]

Owning something is complete flexibility. Never any ET charges, Excess mileages, extension. really annoys me when people say flexibility is an advantage of leasing (I know not here but Zen Auto TV ads and so on - other lease co's often promote leasing as being more flexible than owning). Personally if I had the cash I'd do it I'd buy and accept it might cost me at little more that a cheap broker deal with bulk buying discounts - just for the 'insurance' of complete flexibility through its planned ownership period and beyond. Can get sell, swap or keep whenever you want if you own it and lets face it most peoples job, financial and family situations are fluid these days meaning you are quite likely to want to change a car every now and again outside of a lease cycle

[@DefinitelyNotAGuru]

Yep, fair enough 👍

[@AmazinJ89]

Hey, great video. We're a 2 car house hold My other half bought a new car few years ago. I've been looking to get a new car for myself but now im thinking of leasing my car instead of having 2 cars owned in the household??

[@DefinitelyNotAGuru]

👍

[@simonfisher4154]

Thanks will do!

[@DefinitelyNotAGuru]

👍

[@trevorcrook2565]

I bought my previous car, a 6 month old Hyundai, for 16500 using the dealers 0% finance over 4 years - not a PCP, a loan. My trade in contributed 8000 so the finance was on 8500 and cost well under 200/month. Last year, when the warranty expired I part-exed it for 11700 against an 18 month old Kia with only 8000 miles and 5 1/2 years warranty, which was 19500, and I'd managed to save cash for the 7800 difference, so I now have no monthly finance outgoings and a pretty new, reliable car. I should be able to save for the next car at a good interest rate. Oh, and all the Hyundai needed spending was a set of tyres and a couple of MoTs, as well as routine servicing. Each to their own, but I'd always buy nearly new, long warranty, and change while its still got decent equity.

[@DefinitelyNotAGuru]

Hi Trevor, glad you were happy with your deal. The point of this video is really to show that 0% dealer finance can still be a bit of a pup (as the car is usually sold at full price i.e. without any discount); I'm really hoping that more people do the sums before they sign. We're in a sinking market now versus what was the most bouyant used car market the country had probably ever seen.

[@trevorcrook2565]

Yes, I thought your video was very good, people should do the sums properly like you did, then decide what they are most comfortable with.

[@georgemobbs4413]

GOOD VIDEO DOES PAY TO LOOK AT ALL OPTIONS TO RUN A NEW CAR LOOKING AT LEASEING. FOR MOST ITS AGOOD WAY TO HAVE ANEW CAR EVERY TWO OR THREE YEARS

[@DefinitelyNotAGuru]

👍

[@belmont22tss]

Good video Jim 👍

[@DefinitelyNotAGuru]

Thanks 👍

[@bellshooter]

Good video, but the opportunity loss is not correctly calculated, you need to deduct the intermediate payments monthly from the principal sum or accrued amount, as the whole amount reduces as you pay for a lease.

[@DefinitelyNotAGuru]

Bang on. I’ve done a very basic calculation but haven’t gone into all the detail - reality is you’ll get over 5.5% on that much cash. I didn’t explain it at all in the video to try and avoid confusion but 5% of £28k would actually be £1400 per year plus compounded interest. On 5.5% it would be closer to £1500 per year plus compounded interest. I’ve then just knocked a lump off to take payments into account. A full calc on that would have taken me a decade and bored the audience. Should’ve just explained my reasoning I guess 😬👍

[@PaulGappyNorris]

I bought a brand new VW R-Line in Ireland during Covid, 0% finance. Gave it back to them just over 18months later and they gave me €12,500 for it. Essentially I had a brand new car and they paid me €2,500 for the pleasure 😂😂😎😎

[@DefinitelyNotAGuru]

Awesome. Quite a few stories like that during Covid but unfortunately a thing of the past now unless you've got a GT3 or something

[@V_Dubya]

Got burnt on a lease many years ago and haven't gone back. But now, we've got a salary sacrifice EV scheme. They bundle Insurance, RFL, maintenance, and you can just give it back and break the lease if you leave (or are made redundant). My only concern is i think they build in too much fat on the deal as we're a captive audience

[@DefinitelyNotAGuru]

Yes, I've seen many scrap their work scheme and lease privately again as those fat levels seem to keep rising.

[@neelsn007]

Great video. You broke it down well

[@DefinitelyNotAGuru]

Glad you liked it!

[@aceofspades5786]

Good comparison, wondering how a personal loan works out buying a nearly new/recent car (@20-40% less than new cost) at trade value from the auction.

[@DefinitelyNotAGuru]

I’m sure it’d be fine but buying from auction is pretty risky (a lot of them are still trade only I think too)

[@darrencolvin]

Interest made is lost on inflation so the opportunity factor is lost really inflation is a factor in all this. Also, mileage per year makes a big difference because the lease will be a lot higher on 20k miles a year.

[@DefinitelyNotAGuru]

They’re both on 10k mile deals. Like for like on PCP and lease.

[@timreynolds99]

That £3,600 may be subject to tax too

[@DefinitelyNotAGuru]

Of course

[@andrewowen-price4496]

Can you do a video looking at the possible impact to taking a lease without GAP insurance. I’m very glad that my latest vehicle is covered by GAP - I would be very reluctant to get another lease without it because of the potential financial loss if the car gets written off in an accident. I wonder if the lack of GAP insurance might impact the lease industry and slow down the shift to EVs?

[@jasonsweb1]

its put me off leasing at the moment

[@kph1034]

I had the misfortune to write my car off due to a medical issue. There was a 3.5k difference but I did have GAP insurance thankfully But I still lease my car

[@DefinitelyNotAGuru]

I’m hoping it’ll be back soon.

[@ianrobinson68]

I’m sure all lease terms vary but if your circumstances changed it is likely to be easier to get out of a PCP than it is a lease so unless you know you can commit to that car for it’s full term on a lease then a PCP may be a better option out of the two even if you pay a premium each month. Everyone’s circumstances are different but based on the figures you quoted keeping full term leasing makes more sense when comparing those two.

[@DefinitelyNotAGuru]

Yep, all terms on everything will vary but the point of this video is to get more people to do this exercise rather than simply signing up to 0% finance on the basis that it must be a great deal (which is how it is sold to them)

[@ianrobinson68]

@@DefinitelyNotAGuru yes agree , was an interesting comparison and certainly another way now of running a vehicle. Gone are the days when car leasing was mainly for a business. I’ve always gone with PCPs but I will certainly look at leasing as an option now.

[@DefinitelyNotAGuru]

Yep, if you’re fairly open to the car (i.e. not fixed on a very specific model) there is some real value out there

[@richardbutler1989]

Great videos thanks, could you possibly run a spreadsheet on different mileage per annum? i do about 20,000 miles a year so this would be helpful thankyou. I was considering another bullet proof trusty Audi A7 3 years old so less depreciation, I have seen your videos re the lease option especially the one recently for the BMW i5, the 20k miles is always an issue. Your help would be appreciated.

[@DefinitelyNotAGuru]

I will do a high mileage video at some point but it's unlikely to be at your exact spec. You can book a call via the website if you want to have a chat about your specific case though.

[@cityblue0202]

I went to a Peugeot dealer for a 2008 for the wife and looked at buying on lease or outright and I went on a car site and a different dealer sent me an offer of 4 grand cheaper for the same brand new car.i did want to get a car off loco but they didn’t do the model my mrs wants. I will keep looking

[@DefinitelyNotAGuru]

👍

[@tangalooma7257]

Genius. Thanks Jim!

[@DefinitelyNotAGuru]

👍

[@alanjenkinson7812]

I guess if you dod this comparison with some of the crazy cheap lease deals you’ve been talking about recently, the lease price would smash all the other deals.

[@DefinitelyNotAGuru]

Yes. 100%. If I did use one of those it would seem like I’m forcing the result but you’re not wrong.

[@markholmes6831]

It’s hard to make things equal with buying cash, as you are likely to be keeping the car well beyond 3 years. The best option I found for lease was doing 20000+ miles per year. It was good for tax and the mileage was not so appealing. Having a car for 3 years, then getting rid of it with less than 30000 doesn’t make sense. Most modern cars are good for 10 years and 100+k miles.

[@DefinitelyNotAGuru]

Lots of people change cars every 2 or 3 years. Having a modern car outside of manufacturer warranty is becoming increasingly expensive too!

[@markholmes6831]

@@DefinitelyNotAGuru can’t say I’ve found that to be the case. With routine servicing, mine have been very reliable. Certainly with the mileage on these cars at 3 years old, they are barely run in, and you can get a decent warranty for extra peace of mind.

[@DefinitelyNotAGuru]

Yeah it’s a roll of the dice and each to their own. I’ve had plenty of great used cars as well as my fair share of pups. The only right answer is the one that suits you eh 👍

[@kingwong5996]

I think it depends on what deals are on at the time of purchase. I have brought 2 ev on 0% which was cheaper than the leasing cost like £100 per month. But most of the new cars now are cheaper to lease then buy. And as there are a lot deals going on at the moment. I was looking at a specific model at the time.

[@DefinitelyNotAGuru]

Of course it depends on the lease deal really and what you could get the car for if you were, in theory, a cash buyer. The video is not suggesting a lease is always the best choice, it’s suggesting that you run the numbers like this before just assuming 0% finance is best. I’ve seen new cars sold at 0% being more expensive than cars on 5/6/7/8% in the past due to smoke and mirrors/discount etc.

[@kingwong5996]

@@DefinitelyNotAGuru Yes I agree. So many deals out there looks really attractive but when you do the Maths is just not as good as it seems. Always do your homework I say.

[@DefinitelyNotAGuru]

That’s it, several in the comments will pick holes in the video (they always do with these things) but the point is solely to try to get people to do the sums themselves.

[@andrew-o5i]

had over 30 cars now never leased or finance , i have always saved , i would buy that seat after shopping around for 27k and after 3 years you only lost 11k , i always buy 1 year old car as thats the biggest loss , and you have at leased 2 years warranty remaining .......... was good over lock down , before lock down bought a 1 hear old top of range skoda superb sportline plus , paid 27k , two and a half years later at the end of lockdown i get 24k back ..................

[@DefinitelyNotAGuru]

👌

[@a1paulh911]

Could you please use bigger fonts on your spreadsheet please.... As it was nearly impossible to read the numbers on my big-screen phone!

[@DefinitelyNotAGuru]

I wouldn’t have fit it all in if I did I’m afraid

[@mojitosteele1213]

It's worth reminding people that with leasing, you are always going to have to cough up a deposit every 3 years. Not always possible for many people.

[@DefinitelyNotAGuru]

I would hope they understand that, no different with PCP by the way unless you manage to have genuine value left in the car that will cover a full deposot without all the usual salesman nonsense.

[@Paul-ib5xv]

Having never leased a car before, what happens when the lease is up and the car goes back, do i have to pay a lump upfront to get. new lease, thanks

[@DefinitelyNotAGuru]

You'll have another up front payment - you can choose anythign between 1 month to 12 months equivalent and probably a small broker fee.

[@myromkahaner7336]

thank you !!! The problem is that I do 12.000m a year (not 8000 as most lease asks) so not sure what to do re PCP or Lease....

[@DefinitelyNotAGuru]

These are both on 10k miles per annum. Upping it to 12k costs about £15 per month more in this case.

[@myromkahaner7336]

This is very helpful, thank you very much !

[@dan19752008]

My wife's knee has improved enough that we will probably lose the motability car in 8 months time, I think leasing a new car is the way to go, instead of buying a used car for about 2k

[@DefinitelyNotAGuru]

👍

[@lathamdave]

Surely lease would be serviced? Pcp wouldn't?

[@DefinitelyNotAGuru]

No, it would cost more on a maintained deal, maybe £20/£40 per month more

[@Pete.Ty1]

👍👍👍.Thanks Jim

[@DefinitelyNotAGuru]

Thank you

[@isackville]

That is interesting

[@DefinitelyNotAGuru]

👍

[@craigcousins6718]

Sounds good to me 👍👍👍👍

[@DefinitelyNotAGuru]

👍

[@primop1600]

Guys I need your advice I am looking for a RollsRoyce on lease but maximum looking to pay £2000 a month

[@DefinitelyNotAGuru]

You’ll struggle to get a Rolls on a lease

[@adrianchatto1]

Please show me these 5% bank accounts. Also, you’ve included road tax in your calculations. Perhaps a nod to the tax I might be expected to pay on the interest.

[@DefinitelyNotAGuru]

Google it, loads of them. I think I'm actually going to try to cut the last bit of the video out as it's by far the least important part and seems to be the focus of many peoples attention. The purpose of this video is to show that a 0% finance deal may not always be as great as it seems...

[@andrewmurphy4842]

You missed that you can still get a discount of nearly £4000 even when using the 0% finance. That would then be at least as cheap as leasing!!

[@DefinitelyNotAGuru]

How? I’m taking the figures directly from the 0% finance deal on the Seat website. As I said in the video - the purpose of this videos is PURELY to get people to do the maths themselves on their deal rather than simply signing up for a 0% deal thinking that they’re getting a steal.

[@andrewmurphy4842]

@@DefinitelyNotAGuru Hi Jim the same as you use Lease Loco as a lease broker, you can use a broker to purchase as well. Drive the deal will put you in touch with a dealer that will discount the car £3,800 on the 0% PCP or £6,800 on the 7.9% deal. I have not done the exact maths but it will be very close! Great video though and does highlight how good lease deals are at the moment!

[@DefinitelyNotAGuru]

👍

[@christopherjhall]

Opportunity cost doesn’t factor in tax on interest which in my case would result in only in an about a £2k gain. 5% yield don’t exist on cash ISAs. And even if I did put my money in an ISA I only have a £20k annual limit, most of which I’d want to use for other income. I think your maths is off. For me buying a car in cash, without the need for a loan, could be the most cost effective, but I always lease, because I can’t be doing with the hassle of owning the car and in my experience over the last 6 years the amount in leasing over the period has always been less than the depreciation. I have colleagues who earn less than me who pay £600 a month from a dealer with a discount with now over 6% interest, when their mortgage (which is several £100k) rate is still below 2%. Wheres the sense in that? My advice would be to lease a reasonably priced car on a good deal, enjoy it for what it is and save $$$$

[@DefinitelyNotAGuru]

Yeah ok. The entire point of the video is to get people to look at the numbers themselves rather than signing up blindly to 0% finance deals. Thats all 👍

[@christopherjhall]

@@DefinitelyNotAGuruand all I’m saying is that your math is not accurate. Only ever posted twice on here n I enjoy your content, but both times your responses have been dismissive. Hey good luck though.

[@DefinitelyNotAGuru]

@@christopherjhall”yeah ok” is dismissive? I was agreeing with you Christopher. To be honest, I’ve had more comments about the opportunity cost thing that I threw in at the end than I have about the main body of the video; I wish I hadn’t in hindsight - the sole purpose of the video is to show people that a 0% finance deal can be a pup.

[@pol1250]

High imterest account of 5% ??? Where??

[@DefinitelyNotAGuru]

A quick Google will show you plenty higher than that.

[@Dentos19]

It’s as you say Jim shop the deal not the car if you want the best deal new Peugeot 2008 allure 18 month deal at £248 a month one payment up front seems a great deal👍🥳

[@DefinitelyNotAGuru]

Nice one

[@edwardwaugh5057]

This comparison is not correct. You have not included any discount on the car from the dealer for the 0% PCP option. On the drive the deal you can get this model for £28570 on the 0% deal. So you should really compare it to that figure.

[@DefinitelyNotAGuru]

I got it from Seat, not on the drive, I showed the seat deal in the video and said it was the first one I found so it is indeed correct - the point of the video is to get people to do the maths rather than being blindly lead by a 0% ad.

[@edwardwaugh5057]

@@DefinitelyNotAGuru ​​⁠ well it’s not really a comparison. Because the way the video is done is not really done in a fair competitive way. If you are going to compare a PCP deal direct from the manufacture’s website then you should compare to the lease deal from the manufacturer website. As you state the leasing company gets a massive discount on list price but so can the customer get a huge discount. I don’t think you mentioned that at all in that vid?

[@DefinitelyNotAGuru]

The car I show for cash or loan has a £6250c discount. Nobody likes a keyboard warrior Edward.

[@paulreynolds9003]

I would rather buy a second hand car for 13 grand and it’s mine .

[@DefinitelyNotAGuru]

Ok, nowt wrong with that if that’s your thing.

[@paulreynolds9003]

@@DefinitelyNotAGuru Am sure a lot of people appreciate your brake down of options for leasing v car finance. I wasn’t trying to diss your efforts. Old guy mentality I guess on my part.

[@DefinitelyNotAGuru]

I wasn’t either. I honestly don’t care how people get their cars - I just want people to start considering all things rather than just buying what the salesman puts in front of them. Many get these 0% deals thinking they’ve played a blinder.

[@rogergraw6519]

You never used to be able to advertise/ offer a different price on 0% or cash

[@DefinitelyNotAGuru]

I think the price remains the same but the discount is a "dealer contribution" i.e. they're paying a bit of the price from the goodness of their heart

[@DefinitelyNotAGuru]

We probably had a competent regulator back then

[@dexterkeano]

Can you lease a used car? Say 2-3 years old.

[@DefinitelyNotAGuru]

Leasing a Used Car in the UK kzbin.info/www/bejne/q4mTlmmIYqqriLs

[@guitar_fed]

I have just checked on Tesco Bank and a £26,856 loan on 35 months would set you up for a monthly payment of £864 and an APR of 8.4%. The Clubcard price would be £858.25 and the APR 7.9% Assuming you could get the better rate it would be £858.25 x 35 + the initial £3,380 which would total at £33,418.75. So, right now, the best rate loan would still be £1,000 more expensive than the 0% PCP of your example.

[@DefinitelyNotAGuru]

It’s not £26856 - that’s the total amount including interest. The actual loan is 7.7% and from memory was around the £24k mark. Basically cash price of the car minus £3380 is the loan amount (+interest)

[@guitar_fed]

I am not trying to pick the video to bits, I am just trying to understand. 😊 So, the figure in cell 12/C is already the sum of the loan + interest and in column 12/B is the difference in cash to put down as a deposit, to get to the total of £27,985. 👍 Interests on loans right now are crazy, only one year ago you could get one for max 3.5 % APR. Leasing seems the best option if you want to switch cars regularly, hands down. I am trying to understand what the best option would be if you were to keep the car say for 9/10 years, from new. I guess it goes down to lots of research! 😊

[@DefinitelyNotAGuru]

Fair enough 👍 Yes, I’m out right now so can’t check all the fields but the yes, spreadsheet includes the interest already. Interest rates are great for savers now but certainly a bit poo if you’re looking to borrow. I’ve tried doing calcs on long term ownership before but the variables make it a bit of a pointless effort as you just never know if it’s going to need major work or not. A friend of my bought a 5 year old Diesel Jag (against my advice!) and it needed a new engine 8 months later - that obviously an extreme case but you just never know what’s going to happen. Sorry, I’m aware that’s not very helpful 😁

[@guitar_fed]

Cost of repairs and parts it's actually a very helpful variable to consider, difficult to calculate upfront but there are reliability scores! 👍 Mate of mine bought a '14 plate Porsche Boxster "for a bargain" before the pandemic, and few months later its entire PDK gearbox and transmission failed for a grand total of £12k worth of damage. It can all go well, but it's good to take "contingency" into the calculations!

[@DefinitelyNotAGuru]

Yes!

[@jonnya245]

That's not the best deal for the car though. On auto trader in stock with a 6k discount?

[@DefinitelyNotAGuru]

I showed it with a £6250 discount. Watch it again!

[@mikejoseph425]

I think the issue that you avoided is that you can also get a discount on the new car as well as subsidised interest if you use something like Carwow to give a guideline new cost There is also the relationship that you have with your local dealer if you have any issues that you might not have with a leased car

[@DefinitelyNotAGuru]

No, didn’t miss that if you watch it again. Obviously you can still use your local dealer if you lease - why on earth would you think you can’t?

[@mikejoseph425]

@@DefinitelyNotAGuruI did go back and have a look at your ‘defence’ out of respect as I think you do a great service and at 4min into the video you do talk about a cash price discount but you never conjoined the cash discount with the subsidised interest rate On the question of leasing from my local dealer, that never entered my thought pattern but I will explore it with my next purchase The only thing is I am getting excited about a Toyota GR Yaris auto and I don’t think there will be any deals to be had with that, unless you know something I don’t

[@DefinitelyNotAGuru]

Mike leasing from a local dealer just because they’re local is a mugs game. Get the best price you can from wherever you can, the local dealer will service and repair it - main dealers don’t do relationships, they do profit. The car you eventually get will come through the same port, to the same logistics centre and will be delivered to your house rather than their showroom - there won’t be a hideous ceremony of someone pulling a sheet off the car but I’m guessing you can live without that, especially if you’re saving a few grand. Generally you’ll get a discount on the price or the interest rate, not both. Dealers will also use various smoke and mirrors tactics to lead you into thinking you’re getting a better deal than you are. Just go with the best price and shut out the noise 👍

[@mikejoseph425]

@@DefinitelyNotAGuru was nor really a question as to where I leased if I chose that route. It was a question of lease or PPP. It is costing me around £1,500 more over the 3 years with the option to buy at £18k and I reckon it will be worth at least £1,500 above the £18k so I am unlikely to be out of pocket if I buy to sell, plus I like the idea of keeping the car longer due to a 10 year warranty on Toyotas which also helps the used car value Enjoy tomorrow night

[@mikejoseph425]

@@DefinitelyNotAGuru just to add I got £3,600 off the C-HR and 1.9% interest rate. I found using Carwow to buy is an excellent tool as you take the best offer to your local dealer that they matched

[@jimrandall1739]

✌❤ 👍

[@DefinitelyNotAGuru]

Thank you

[@jimrandall1739]

Thanks Jim, Im completing my 4yr lease this July. Ioniq SE, fantastic car and never missed a beat. So, on average including deposit ive paid £282 a month for 48 months. What a deal, even Hyundai couldn't get it below £400. Although the lease company said there would not be an option to buy, there is. 2020 (20 plate) 32000 miles, £12950 + £13536 lease = Total £24286. List price £32050. And £12950 is about right on Autotrader. Im going for it, I do 99% charging at home and it costs me £125 a year for my electric. Diesel £1160, so ive saved £4000 in fuel. Thanks for all your videos, I'll keep watching as I might pull the trigger on a real crazy deal, Im a sucker for a bargain. 👍@@DefinitelyNotAGuru

[@drhaykey]

But you are forgetting the off set cost of not investing your £400+ lease fee, so your comparison is not fair.

[@DefinitelyNotAGuru]

Ok. I’ve answered this point several times already.