UK Car Finance Basics Explained - PCP VS LOAN vs LEASE vs HP

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DefinitelyNotAGuru

DefinitelyNotAGuru

Gün önce

YORUMLAR: 108
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
*Support the channel & click through to Amazon here : **amzn.to/3dLVstT*
Chris Wright
Chris Wright 9 aylar önce
Being trying to get my head around this leasing lark for a while and this explained it as best as I have seen before. Thanks for that and in my mind now I have a far better grasp of it all.
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Glad to be of service Sir. Lots more leasing content to come in the near future 👍
Sebastian Borek
Sebastian Borek 9 aylar önce
Thank you "Car guru" - for me. You helped me to get my first lease on brand new Cupra Leon 300hp , the car I was after for many months.Just signed agreement today and expecting it right before Christmas. Great chanel , very helpful with lots of useful bits what to look at before you make a final decision.. big thumb up 👍
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@Sebastian Borek thanks so much, great when people spread the word!
Sebastian Borek
Sebastian Borek 9 aylar önce
@DefinitelyNotAGuru you have my full support and will recommend your chanel to my other friends who looking to change their wheels
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thank you Brother 🙏
John Roberts
John Roberts 9 aylar önce
I suspect that most people are initially hesitant about leasing (I certainly was) but once you manage to overcome the psychological hurdle of not owning the car, realise that a PCP is basically exactly the same and then focus in on how much cheaper a lease deal almost always is then it becomes unarguably the way to go. Nice clear and concise video Jim which will certainly help those leasing waverers to see the light! Thanks.
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks a lot John 👍
Mr Ludders
Mr Ludders 9 aylar önce
This is a very informative video thanks for that but it may have been worth you highlighting for those who are new to car financing the difference between the deals in terms of early termination. It is my understanding that although Leasing is cheaper than pcp and hp you are not covered under the consumer credit act of 1974 if you are wishing to return the car early. for instance if you became unemployed like many in the pandemic then with leasing you would be heavily penalised and charged 50% of the remaining payments in one lump sum if you could no longer afford the car. With pcp and hp you are covered by the consumer act meaning as long as you have paid 50% of your payments you can legally return the car at no cost and the provider can not stop you. For some people this can be a factor for that peace of mind and perhaps is often over looked. As the pandemic proved uncertainty is the only thing that is certain in life.
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Yes, I’ve covered it in other videos but could have mentioned it again I guess. 👍
Farang Travels
Farang Travels 9 aylar önce
Thanks for the video, reassures me that I did the right thing taking out my first lease earlier in the year 👍
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Good man 👍
Lee Moffatt
Lee Moffatt 6 gün önce
I would be really interested in a comparison of the options at the end of your lease period if you can’t go straight onto your next lease. Given the current wait times (I’ve been waiting over 12 months) on new leases it would be good to know the best option whether to extend the lease and wait for the new lease to arrive or buy the car and perhaps sell when the new car arrives.
DefinitelyNotAGuru
DefinitelyNotAGuru 6 gün önce
I’ve done videos on that already
Ian Tampkins
Ian Tampkins 9 aylar önce
Hello mate just subscribed and loving the content. Do you still have to insure, tax etc when you lease a car, thanks 👍
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
No worries 👍
Ian Tampkins
Ian Tampkins 9 aylar önce
@DefinitelyNotAGuru lovely thanks mate 👍
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks Ian. You don’t have to tax it but you do have to insure it. If you have it longer than 3 years you also have to MOT it 👍
Sayed
Sayed 9 aylar önce
Great video👌 Do you know when financing a used car through a dealer, who actually owns the car ie dose the dealer owns the car and you’re paying interest to the dealer or you’re financing the car from a bank and paying interest to the bank?
Sayed
Sayed 9 aylar önce
@DefinitelyNotAGuru thanks a lot 👍
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@Sayed you’re overthinking it mate. You buy a car with an agreed finance deal (one sold buy the dealer or one you find yourself), you then pay the finance company. Nothing more for you to worry about.
Sayed
Sayed 9 aylar önce
@DefinitelyNotAGuru sorry to bother you, if i buy a used car from a dealer basically the finance company pays the dealer the price of the car and i will pay the finance company monthly payment plus interest is that correct? Or is it the finance company buys the car from the dealer and then sell it to me with their rate of interest?
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@Sayed happy to help Sayed, thanks for watching 👍
Sayed
Sayed 9 aylar önce
@DefinitelyNotAGuru that’s helpful thanks alot appreciate your reply
Sparkyword
Sparkyword Aylar önce
Legend. This is golden information, thanks for breaking it down !
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
My pleasure, thanks for joining in.
chris atkins
chris atkins 9 aylar önce
Ordered my 3rd Lease car after previously doing pcps but ended up just handing them back or using for deposits! Leasing is the way forward, avoid the deprecation!!
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks for commenting Chris 👍
H.B's Faithful Servant
H.B's Faithful Servant 9 aylar önce
Another excellent job Jim 👍. You forgot to mention the deal you got with your leased VW…which was a gud’n from my recollection. I’ve been looking at a pcp on a Dacia Duster. £13,500 car over 4 years, with final balloon payment of £6,500… which is more than the car would be worth at that point. Cost of finance is £2,000 over those 4 years… but you could be suckered in by them telling you it’s 0% apr. Crafty buggers. Leasing an in stock one is about £344 per month over 2 years, but Hyundai Tucson is only £307. Just doing some research… but I’m glad I watch some bloke called Jim for tips 🤓🤩
H.B's Faithful Servant
H.B's Faithful Servant 9 aylar önce
@DefinitelyNotAGuru 😇😉
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@H.B's Faithful Servant I’m an all-around pretty fantastic person actually, I just don’t like to talk about it 😁
H.B's Faithful Servant
H.B's Faithful Servant 9 aylar önce
@DefinitelyNotAGuru Lol. Thanks boss 😁. That’s a kind gesture. 🙏👏
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Haha thanks. That PCP on the duster sounds really naff. Drop me an email if you need any assistance with anything, special service for my crew 👍👍👍
NeloAnjelo
NeloAnjelo 21 gün önce
I've always gotten a low interest loan over 5 years. Then own the asset and trade it in. Always found this cheaper. Great video. Very insightful.
DefinitelyNotAGuru
DefinitelyNotAGuru 21 gün önce
👌
Honda Hooligan
Honda Hooligan 2 aylar önce
We're waiting for our leased Kia Proceed to be imminently delivered. As we're not hung up on owning our main family car and are planning to hand it back and continue with a new deal, it certainly made the most sense for us.
Honda Hooligan
Honda Hooligan 2 aylar önce
@DefinitelyNotAGuru They certainly are. We went for a four year lease as it bought the monthly payment down and enabled us to go for a higher spec, and the fact it's backed up by a seven year warranty sealed the deal for us.
DefinitelyNotAGuru
DefinitelyNotAGuru 2 aylar önce
Good choice, Kia are producing some great cars nowadays
Alasdair B
Alasdair B 9 aylar önce
could you do a similar video comparing how the deals play out for higher mileages like 20,000 miles a year? does the same rationale still apply or does pcp offer better value then?
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Will do at some stage. A win for PCP is exceptionally rare.
Ant Collins
Ant Collins 3 aylar önce
Great explanation, many thanks.
DefinitelyNotAGuru
DefinitelyNotAGuru 3 aylar önce
Thanks Ant 👍
David Odimayo
David Odimayo 5 aylar önce
Excellent video. Thank you.
DefinitelyNotAGuru
DefinitelyNotAGuru 5 aylar önce
Thanks for watching 🙏
kiran gabri
kiran gabri Aylar önce
Finally you’ve cleared the murky waters , very helpful
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
Thank you!!
Robin Hood
Robin Hood Aylar önce
My car was on a PCP contract. After two year being on the pcp contract I decided to apply for a loan (cash) and bought a car from dealer. Number one the car is yours and it is much better to have own balloon payment. It is very imported to look after the car (service, service book,etc).When you look after you car your car looks after you I mean you can sell it for the good price in future.
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
👍
Pixelheist
Pixelheist 8 aylar önce
You sir are a saint, thanks for explaining this clearly to a doyle like myself who couldnt get it through his thick skull! Top banana!
DefinitelyNotAGuru
DefinitelyNotAGuru 8 aylar önce
Thanks pal. You only know what you know once you know it mate 👍
Alastair C
Alastair C 9 aylar önce
The way the hybrid / battery tech is on the fastest growth defo lease only so you can swap to a newer car tech every 3 years unless you buy a 4 year old at almost 60% of SP.Goid simple explanation 👌
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks bud 👍
Paul Healy
Paul Healy 9 aylar önce
Good video clearing up the bs for everyone
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Appreciate that Paul, thanks mate
Chris Wiltshire
Chris Wiltshire 9 aylar önce
Excellent video and now swaying to a lease deal but have you seen and lease brokers/brands that specialise in high mileage. I’m looking for 20k per year. This is commuting not business mileage. Thanks
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@Chris Wiltshire will do, spread the word ;)
Chris Wiltshire
Chris Wiltshire 9 aylar önce
@DefinitelyNotAGuru thank you. I’ll watch that one now. Keep the content coming. 👍🏼
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Most companies will do high mileage deals, the price obviously goes up quite a bit in a lot of cases - I did a video on the subject actually....trshow.info/watch/V4hFr93ldPU/video.html
Gary C
Gary C 9 aylar önce
Excellent video.
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks Gary 👍
Paul Wilson
Paul Wilson 9 aylar önce
Great . Thanks !
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks for watching
andrew meikle
andrew meikle 6 gün önce
When you're talking about the 5k difference between the lease value and pcp value... I feel like the possible upsides of the cash your getting back if your car is worth more than expected when its returned was kind of glossed over. I think its the value of the car if you do all the miles in the PCP contract, like 24k miles @8k a year for 3 years. If you do less than that you'll have more money to put into the next pcp deal so it could end up making it closer to parity with the lease ( especially if the dealer is willing to contribute to the deposit as you mentioned ). Lots of assumptions there though, market, dealerships etc... Tbh taking out a pcp these days with the interest rates they're charging now is a horrifying thought
DefinitelyNotAGuru
DefinitelyNotAGuru 5 gün önce
@andrew meikle hi, yes, just click on “make an enquiry, tell them the spec you want and they’ll give you a price based on the exact spec.
andrew meikle
andrew meikle 5 gün önce
@DefinitelyNotAGuru do you know if going through sites like Leaseloco, can you spec up the car you want or do you get whatever specs they have/order in?
DefinitelyNotAGuru
DefinitelyNotAGuru 6 gün önce
Each to their own mate. Thanks for watching and joining in 👍👍👍
Aamir Khokhar
Aamir Khokhar 9 aylar önce
Hi Which website you use for Hire Purchase so I can filter 7 seater. Please. Thanks
Aamir Khokhar
Aamir Khokhar 9 aylar önce
@DefinitelyNotAGuru thanks
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
AutoTrader is a good place to search for a car. You can shop around for your hire purchase, all the usual financial services providers and comparison sites are worth a look, money supermarket etc.
Sean Elvin
Sean Elvin 9 aylar önce
Great video
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Thanks buddy 👍
Kazim Ayub
Kazim Ayub 7 gün önce
Can you suggest if going for a 3 year old car what is the best option?
DefinitelyNotAGuru
DefinitelyNotAGuru 7 gün önce
It all depends if the price and deal mate, try and follow a similar path to what I did in this video to work it out.
crimsonbride
crimsonbride Aylar önce
Thanks so much for the video but I don't understand where the 10k left over is coming from?
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
Ok, maybe watch again
Chris Brooker
Chris Brooker 8 aylar önce
Is there anywhere decent to Lease nearly new cars? Leasing a car which just came off a lease, like 2/3 years old?
DefinitelyNotAGuru
DefinitelyNotAGuru 8 aylar önce
@Chris Brooker most lease cars go through BCA auctions (BCA also owns webuyanycar and Cinch)
Chris Brooker
Chris Brooker 8 aylar önce
@DefinitelyNotAGuru ah I see, had a look online and couldn't find any decent websites. Might have to look into auctions . Thanks mate
DefinitelyNotAGuru
DefinitelyNotAGuru 8 aylar önce
Not that I know of mate, that tends to be when they go into the auctions and then into the motor traders
Railvlogger
Railvlogger 9 aylar önce
I wish you would've put out this video a few months ago. I bought a Toyota C-HR last August on a 0% interest PCP deal over 3 years with the full intention of handing it back at the end of the term and starting all over again with a new car. Now I want to lease a Tesla Model 3 however I will lose too much on my car. I'm thinking of keeping my car for 6 months. I will keep the mileage low hoping it doesn't depreciate too much in that time. I am prepared to take a hit on it. I would really love to get a Tesla. If I had have known that leasing was an option I would never have gone down the PCP road.* footnote. My car has just under 700 miles on it. If I can keep it below 2000 in 6 months time I don't expect it will depreciate too much seeing that all new ones are factory orders only.
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@Railvlogger no
Railvlogger
Railvlogger 9 aylar önce
@DefinitelyNotAGuru Your coffee is ready. Just one question. Are you or have you been involved with the motor trade?
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
@Railvlogger I guess the Tesla will be a factory order too mate which could take forever to arrive. 1) speak to the finance company about your exit options (how much it will cost you to exit the agreement, or to buy out the car), 2) get a used car valuation from Motorway & WeBuyAnyCar and see if it's worth buying the finance deal out or exiting the finance deal.
Railvlogger
Railvlogger 9 aylar önce
@DefinitelyNotAGuru I edited my comment above. Have a look and give me your opinion. I'll buy you a coffee.
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
Have you asked about handing it back or checked the used value on WeBuyAnyCar? you may be able to get out of it as used car prices have skyrocketed recently. You may have a chance of getting out of it. I've done a lot of videos like this previously by the way - they just haven't been seen by all that many people!
Mudskipper 007
Mudskipper 007 7 aylar önce
Everyone to their own but leasing/PCP is essentially just hiring long term,if that suits the individual fine but it’s another monthly bill that lasts forever unless you get off the deal ,it’s only a new car for a day also ,I like the flexibility of changing cars whenever I see something else that I fancy ,very well explained video though…👍just had this conversation with my sister in law that has always done PCP deals on executive models ,she has paid almost £33k in car payments but still doesn’t own a car….😳
Robin Hood
Robin Hood Aylar önce
The best option is pcp for a while then it's much better to apply for a loan (cash) from a Bank and make own payment balloon. Don't forget to keep a car in a good condition ( full service, interim service, service book, etc), because you can sell your car for the good price
DefinitelyNotAGuru
DefinitelyNotAGuru 7 aylar önce
Definitely 👍
Mudskipper 007
Mudskipper 007 7 aylar önce
@DefinitelyNotAGuru PCP has been great for the dealers also ,not just on new stock but a never ending supply of cars coming to the end of their deals and the cycle starts again ,I know the used market is nuts at the moment but it will bottom out sooner than later ,I just sold my E class to one of those car buying sites after putting in the details as a bit of a laugh months ago ,they were in constant touch offering better and better prices so I bit the bullet before they disappear…🤣🤣 ,I don’t mind driving older stuff that’s been well maintained,there is still some great value cars out there if you do the leg work….👍
DefinitelyNotAGuru
DefinitelyNotAGuru 7 aylar önce
I agree 100%, there are rare occasions where it works out and for people exiting a PCP right now it’s been good as used prices have had this false high but generally I’m not a circumstances I’m not a fan of PCP at all. The worst thing about PCP (aside from the fact it’s often more expensive than a lease over the initial term) is that the dealer has you in the palm of their hand and will offer deal after deal to keep you in it - I think of it as the Stockholm syndrome of car finance. It’s not like this 100% of the time, just >99% IMHO.
Rup Dog
Rup Dog 9 aylar önce
what about leasing a nearly new car? is that possible. i havent seen them on leaae loco
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
I've seen such a thing in the past and they do exist but are usually a fair bit more expensive than a new one.
Rup Dog
Rup Dog 9 aylar önce
Do manufacturers do lease deals?
DefinitelyNotAGuru
DefinitelyNotAGuru 9 aylar önce
main dealers do quite often, What Car leasing site is the place to go for them.
daylee08
daylee08 4 aylar önce
So if I was buying, say a 69 reg car (as of this comment it’s March 22) what would be the best option? Ford Fiesta ST line £14,500.
DefinitelyNotAGuru
DefinitelyNotAGuru 4 aylar önce
This recent video will help you do the maths trshow.info/watch/X45sf_me32k/video.html
Essex Andy
Essex Andy Aylar önce
So if the value went down £10,000 after 3 years it would still be valued at £24,000 so if you give it back won’t they owe you £7,000 as that’s the difference between the value off the car and what the ballon payment is or use the £7000 for another finance deal
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
@Essex Andy Thanks for watching mate
Essex Andy
Essex Andy Aylar önce
@DefinitelyNotAGuru 20% wow then again no surprise as everything is going up anyway Love the videos keep the good work up
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
@Essex Andy That's it mate, so much depends on the depreciation and the lease deal. You have to try and second guess what's happening, on a Tesla 3 in the last 3 years you'd have done pretty well on a PCP but I bet you won't over the next 3 years. The point of these videos for me is showing you how I calculate it roughly so you can try and make a more informed decision as the car dealers will always tend to push you into one direction, and it's one that usually suits them the best. The price of a new model 3 has gone up about 20% this year by the way.
Essex Andy
Essex Andy Aylar önce
@DefinitelyNotAGuru ok thanks it was just that i watched another video on TRshow and the example he gave was better for pcp on a Tesla model 3 obviously though could only guess at the deprecation price after 3 years
DefinitelyNotAGuru
DefinitelyNotAGuru Aylar önce
If you give the car back without paying the balloon payment then you get nothing. You might be able to get something towards deposit on another one but don't expect the full £7k. Even if you diod get the full £7k you're still worse off than if you'd leased it with this example. Always worth running the numbers through on all options when you're deciding what to do on a car.
trzarector
trzarector 5 gün önce
Hi, Just wanted to get your opinion on buying cars that I wish to rent out. Is a bank loan the only route or can I use another method of finance. HP, lease? If you could help that'd be great!
DefinitelyNotAGuru
DefinitelyNotAGuru 5 gün önce
You’d need commercial finance for that
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