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.

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?

[homersrevenge]

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

[JollyRoger]

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

[rodrigoms]

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.

[DannyWaddell]

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

[chrism]

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

[bhushanshelar]

you made a awsome video thankyou for that.

[georgebutts]

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

[domaindave]

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

[peterarmstrong]

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.

[malinkakm]

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

[philspencelayh]

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.

[bigbearuk]

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

[gordonwilson]

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

[Sly_Wolf_]

And then when you can't work which means you don't 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.

[ianedmonds]

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

[AB-ocde]

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

[lindaj]

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