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

0% Car Finance vs Lease | Car Finance Comparison | Surprising Results

This one does what it says on the time, I take a look at a 0% finance deal on a Seat Ateca and compare it to a PCH Car Lease Deal found on Lease Loco.

At the end of the video I then look at paying for the car using cash or a loan and give you an overview of my findings. We've looked at PCP vs leasing before but the results on this one may be an eye opener.

Folks, this is not financial advice, just an everyday bloke trying to make sense of the madness. Enjoy.
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🚗🚗 𝙈𝙔 𝙇𝙄𝙉𝙆𝙎 🚗🚗
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🔥🔥 𝘼𝙁𝙁𝙄𝙇𝙄𝘼𝙏𝙀 𝙇𝙄𝙉𝙆𝙎 🔥🔥
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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.

𝙋𝙡𝙚𝙖𝙨𝙚 𝙡𝙞𝙠𝙚 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚! ;)

[philiphidson]

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

[derrickgreen]

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

[robertmay]

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.

[robertmacintyre]

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

[mikadavies]

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.

[richarddixon]

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

[michaelhayes]

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.

[robsmitha]

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

[rjhw]

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.

[simonfisher]

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,

[br]

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.

[jasonsweb]

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.

[NumberHeadlightRestoration]

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

[williamfence]

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?

[ricardo-iwsq]

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.

[marvinsamuels]

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

[simonfisher]

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!

[chrisduffill]

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

[chrisbarrow]

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

[Simonr]

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..
👍