DON'T BE CONNED BUYING A CAR - PCP VS LEASE VS HP VS CASH EXPLAINED.

In a world where car ownership has taken a leasing-centric turn, it's time to face the reality: we're all leasing cars, whether we admit it or not. Very few people on Personal Contract Purchase (PCP) agreements actually end up keeping their vehicles, essentially making it a leasing arrangement. So, in this tell all video, we delve into the realm of car finance options to help you make the best decision for your next car.

While we do hold a soft spot for leasing, we understand that it may not be everyone's cup of tea. Rest assured, this video remains unbiased, presenting Howard Ritchie as he stands, armed with only a whiteboard and a less-than-impressive drawing ability. He simply lays out the facts and clarifies the intricacies of car buying options, ensuring you're well-informed to make the right choice.

So do feel free to comment on what you already knew... whether you're a leasing enthusiast or exploring alternative routes, Howard Ritchie's School of Motoring is here to guide you through the maze of car finance possibilities. Let the knowledge unfold and the whiteboard master enlighten you, one drawing at a time.

Key moments:
00:00 – Introduction
00:30 – How does PCP car finance work?
03:30 – How does leasing (PCH) work?
05:18 – Should you ever buy a new car with cash?
06:52 – How does HP car finance work?
07:15 – PCH vs PCP vs HP summary

[leasingdotcom]

COMMENTS QUIZ: WHICH FORM OF CAR FINANCE ARE YOU ON AND WHY?

[johnhumphries]

I used to think it was crazy for people to want to buy new cars but now I think it's great. I've finally recognised that if people didn't buy new stuff and get bored with it, I wouldn't be able to buy the same thing for half the price three years later. Keep buying new stuff, you're doing a great job :-)

[paulyflyer]

When I was a kid in the 70s, if I saw a fella in a merc, Rover or a Granada I'd think wow he's got a few bob...there goes success.
Nowadays if I see someone in a new Merc or Range Rover, I simply think there goes someone up to their necks in debt without a pot to P*** in.

[nickdoughty]

£45, 000 for a Golf!! Is it just me, but that's insane.We are being ripped off, royally.

[jamesgeorge]

When buying a car get this complicated you know for sure there is a con going on.

[johnmunro]

I've never understood why people do any of this. I'm happy drive an older car. Have paid off my mortgage and I am going to retire at 55.

[yourface]

Only driven an old car. I often consider getting a newer car on PCP, but can never justify the extra monthly spend. I think I’ll run my current car into the ground first

[daltonknox]

Want to save money on driving. But a Toyota or Lexus new or used. Keep it until 250, 000 miles then repeat. Compared to your clever neighbour who has been through five leases, PCPs or whatever in the same period, you will have saved a mint.

[michaelives]

Strikes me, the bottom line is people wanting new cars they can't necessarily afford. People seem to be infatuated with cars nowadays. Most bizarre.

[peterhowlett]

Car prices have been artificially inflated over recent years to get everyone onto PCP, 45k for a Golf is a joke.

[iaing]

The problem with leasing is they are hard to get out off if your circumstances change, they will both cost heavily if this is needed. Where selling a car you already own even if you had a bank loan for it is much easier.

[rob_lightbody]

Good video. I think you should mention cash via a bank loan/private loan though. It has advantages and flexibility and can cost less overall than dealer financing.

[James__]

Got to love this video said the quiet bit out loud, the clever people don't buy new cars 🤣

[punkarse]

Buy the best car you can afford for cash after it has stopped depreciation so badly. That way you have one less bill each month so less stress and will enjoy your life more... simple👍🏾

[ahassen]

45k for a Golf is ridiculous but then absorbing all that depreciation in the first 3 years and handing it back is about as sensible as wearing a down jacket in 45°c.

[plxton]

Very helpful thank you. I've always wondered about that 'balloon' payment and never really understood it and now everything makes sense. It's very clever marketing. The car company over prices their vehicles so people that want to buy out right pay an excess, whereas the majority of us finance and therefore the brand gets a steady flow of cash and the customer is locked in to the brand meaning the cash flow will continue into the future. This isn't new to most people but if definitely is to me!

[andreferraz]

Cash, for a 2.5 / 3 year old car. You'll be richer at the end of the day.

[f-u-nkyf-u-ntime]

I paid outright for a 9 year old Jaguar XJ portfolio 3.0ltr supercharged with only 16, 000 miles on it and one owner that had been serviced every 2000 miles.
Original bill of sale in 2012 said £67, 500. I paid £19, 000. It was like a brand new car.

[joegatrill]

I bought my first car from auction for £110, second from a neighbour for £10 (written off), third from an ex school teacher for £1100 and fourth from a family friend for £1200 and its still going 12 years later! That spans 20 years and £2420. While everyone i knew had nice cars and debt, I saved for a house deposit. More than one way to skin a cat! (Whatever that means)

[taqveem]

Thanks, today i have finallyunderstood the difference between these. And it came roght on time when someone was going to try sell me a PCH car as though it was a PCP! Saved me from making the mistake! Thank you.