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

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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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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.
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17 мар 2024

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@DefinitelyNotAGuru 3 месяца назад

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

@robertmacintyre8065 2 месяца назад

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

@DefinitelyNotAGuru 2 месяца назад

👍👍

@richarddixon6354 2 месяца назад

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

@DefinitelyNotAGuru 2 месяца назад

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.

@marvinsamuels1237 2 месяца назад

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

@DefinitelyNotAGuru 2 месяца назад

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

@br164 3 месяца назад

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.

@karlhayes1077 3 месяца назад

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 3 месяца назад

@@karlhayes1077Yes, better still if you buy a brand with a 5/7 year warranty

@DefinitelyNotAGuru 3 месяца назад

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 3 месяца назад

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

@chrishart8548 3 месяца назад

@@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.

@nikboseley5117 3 месяца назад

Excellent comparison Jim..top man

@DefinitelyNotAGuru 3 месяца назад

Thanks

@Number1HeadlightRestoration 3 месяца назад

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

@DefinitelyNotAGuru 3 месяца назад

Thanks Mark 🙏

@northernhound3899 3 месяца назад

An interesting comparison, well explained. Just to mention there is an opportunity cost on monthly payments as well, but of course not of the same order of magnitude as a large lump sum cash payment.

@DefinitelyNotAGuru 3 месяца назад

yep

@glengosling5636 3 месяца назад

Another great show, keep it going,

@DefinitelyNotAGuru 3 месяца назад

Thanks, will do!

@simonfisher4154 2 месяца назад

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 2 месяца назад

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

@jasonshaw1628 3 месяца назад

Good comparison Jim- thanks 👍

@DefinitelyNotAGuru 3 месяца назад

No problem 👍

@briandews2698 3 месяца назад

Absolutely spot on Jim 👍

@DefinitelyNotAGuru 3 месяца назад

Thanks 🙏

@neelsn007 3 месяца назад

Great video. You broke it down well

@DefinitelyNotAGuru 3 месяца назад

Glad you liked it!

@rjhw99 3 месяца назад

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 3 месяца назад

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

@derrickgreen2903 3 месяца назад

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

@DefinitelyNotAGuru 3 месяца назад

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

@tangalooma7257 3 месяца назад

Genius. Thanks Jim!

@DefinitelyNotAGuru 3 месяца назад

👍

@belmont22tss 2 месяца назад

Good video Jim 👍

@DefinitelyNotAGuru 2 месяца назад

Thanks 👍

@robsmith1a 3 месяца назад

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

@DefinitelyNotAGuru 3 месяца назад

👍 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 3 месяца назад

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

@michaelhayes9975 2 месяца назад

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 2 месяца назад

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.

@mikadavies660 3 месяца назад

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 3 месяца назад

Great to hear!

@paulreynolds9003 3 месяца назад

How much deposit did you have to pay first.

@mikadavies660 3 месяца назад

@@paulreynolds9003 £1100

@Wigwamwish 3 месяца назад

How much did you have to pay upfront?

@mojitosteele1213 3 месяца назад

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 2 месяца назад

Thanks will do!

@DefinitelyNotAGuru 2 месяца назад

👍

@stephencollins7714 13 дней назад

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

@DefinitelyNotAGuru 13 дней назад

👌

@Pete.Ty1 3 месяца назад

👍👍👍.Thanks Jim

@DefinitelyNotAGuru 3 месяца назад

Thank you

@jasonsweb1 3 месяца назад

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 3 месяца назад

👍

@chrisduffill5248 Месяц назад

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 Месяц назад

👌

@simonfisher4154 2 месяца назад

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 2 месяца назад

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 👍

@ricardo-iw9sq 3 месяца назад

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 3 месяца назад

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

@ricardo-iw9sq 3 месяца назад

@@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 3 месяца назад

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 3 месяца назад

@@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 3 месяца назад

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.

@chrisbarrow9909 2 месяца назад

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

@DefinitelyNotAGuru 2 месяца назад

👌

@georgemobbs4413 3 месяца назад

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 3 месяца назад

👍

@williamfence566 3 месяца назад

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 3 месяца назад

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

@richardbutler1989 2 месяца назад

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 2 месяца назад

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.

@johnharvey1786 2 месяца назад

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 2 месяца назад

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 3 месяца назад

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 3 месяца назад

Yep, fair enough 👍

@aceofspades5786 2 месяца назад

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 2 месяца назад

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)

@craigcousins6718 3 месяца назад

Sounds good to me 👍👍👍👍

@DefinitelyNotAGuru 3 месяца назад

👍

@MichaelAdamsLeeds 3 месяца назад

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 3 месяца назад

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 3 месяца назад

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.

@Simonr75 3 месяца назад

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 3 месяца назад

👍

@killbit01 2 месяца назад

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

@Simonr75 2 месяца назад

@@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.

@trevorcrook2565 3 месяца назад

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 3 месяца назад

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 3 месяца назад

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.

@isackville 3 месяца назад

That is interesting

@DefinitelyNotAGuru 3 месяца назад

👍

@bellshooter 3 месяца назад

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 3 месяца назад

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 😬👍

@johnmackay7789 2 месяца назад

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 2 месяца назад

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

@dan19752008 2 месяца назад

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 2 месяца назад

👍

@AmazinJ89 3 месяца назад

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 3 месяца назад

👍

@ianrobinson68 2 месяца назад

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 2 месяца назад

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 2 месяца назад

@@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 2 месяца назад

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

@kingwong5996 3 месяца назад

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 3 месяца назад

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 3 месяца назад

@@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 3 месяца назад

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.

@maff257 2 месяца назад

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 2 месяца назад

Yeah does seem like bad darts doesn’t it?

@V_Dubya 2 месяца назад

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 2 месяца назад

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

@alanjenkinson7812 Месяц назад

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 Месяц назад

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

@darrencolvin 3 месяца назад

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 3 месяца назад

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

@timreynolds99 3 месяца назад

That £3,600 may be subject to tax too

@DefinitelyNotAGuru 3 месяца назад

Of course

@myromkahaner7336 3 месяца назад

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 3 месяца назад

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

@myromkahaner7336 3 месяца назад

This is very helpful, thank you very much !

@cityblue0202 3 месяца назад

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 3 месяца назад

👍

@andrewowen-price4496 3 месяца назад

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 3 месяца назад

its put me off leasing at the moment

@karlhayes1077 3 месяца назад

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 3 месяца назад

I’m hoping it’ll be back soon.

@user-zb6el4ks2b 2 месяца назад

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 2 месяца назад

👌

@markholmes6831 2 месяца назад

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 2 месяца назад

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

@markholmes6831 2 месяца назад

@@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 2 месяца назад

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 👍

@PaulGappyNorris 2 месяца назад

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 2 месяца назад

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

@Paul-ib5xv 2 месяца назад

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 2 месяца назад

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

@a1paulh911 3 месяца назад

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 3 месяца назад

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

@mojitosteele1213 3 месяца назад

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 3 месяца назад

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.

@gap9992 3 месяца назад

What condition does a car need to be in at the end of the lease? Does the lease company try to charge you for any stone chips or carpark dinks? Webuyabycar knock down their quoted price for ANY defect to a panel so do lease companies do the same? I suppose at the end of the lease you can just cancel the direct debit and they would have to use a legal process to get more money out of you?

@DefinitelyNotAGuru 3 месяца назад

Check out the BVLRA fair wear and tear guide for what's allowable - not really any need for any dramatic action, just look after the car and get any serious bits sorted before it goes back.

@Dentos19 3 месяца назад

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 3 месяца назад

Nice one

@lathamdave 3 месяца назад

Surely lease would be serviced? Pcp wouldn't?

@DefinitelyNotAGuru 3 месяца назад

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

@andrewmurphy4842 3 месяца назад

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 3 месяца назад

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 3 месяца назад

@@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 3 месяца назад

👍

@adrianchatto1 3 месяца назад

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 3 месяца назад

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...

@christopherjhall 3 месяца назад

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 3 месяца назад

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 3 месяца назад

@@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 3 месяца назад

@@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.

@rogergraw6519 2 месяца назад

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

@DefinitelyNotAGuru 2 месяца назад

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

@paulreynolds9003 3 месяца назад

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

@DefinitelyNotAGuru 3 месяца назад

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

@paulreynolds9003 3 месяца назад

@@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 3 месяца назад

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.

@pol1250 3 месяца назад

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

@DefinitelyNotAGuru 3 месяца назад

A quick Google will show you plenty higher than that.

@edwardwaugh5057 2 месяца назад

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 2 месяца назад

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 2 месяца назад

@@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 2 месяца назад

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

@jonnya245 3 месяца назад

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

@DefinitelyNotAGuru 3 месяца назад

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

@dexterkeano 2 месяца назад

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

@DefinitelyNotAGuru 2 месяца назад

Leasing a Used Car in the UK ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-uX0e6R-ExRY.html

@jimrandall1739 3 месяца назад

✌❤ 👍

@DefinitelyNotAGuru 3 месяца назад

Thank you

@jimrandall1739 2 месяца назад

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

@guitar_fed 2 месяца назад

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 2 месяца назад

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 2 месяца назад

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 2 месяца назад

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 2 месяца назад

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 2 месяца назад

Yes!