DON'T BE CONNED BUYING A CAR - PCP VS LEASE VS HP VS CASH EXPLAINED.
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Publicado 2022-11-03
Join us in Leasing.com's inaugural School of Motoring episode, where Howard Ritchie sheds light on the various ways to finance your next car. Cash, PCP, Hire Purchase (HP), or Lease – each option is examined with transparency and insight. Ever wondered what a balloon payment is and who actually pays it? Contemplating the wisdom of buying a brand-new car outright with cash? Curious about the pros and cons of a personal loan? Look no further.
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
Leasing vs PCP with real world examples: bit.ly/3t2hzTC
Five car leasing questions answered: bit.ly/3p8OkO0
How to choose your leasing plan: bit.ly/3v8fCI2
What credit score do you need to lease a car? bit.ly/3heLMJQ
Todos los comentarios (21)
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COMMENTS QUIZ: WHICH FORM OF CAR FINANCE ARE YOU ON AND WHY?
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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.
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£45,000 for a Golf!! Is it just me, but that's insane.We are being ripped off, royally.
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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 :-)
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When buying a car get this complicated you know for sure there is a con going on.
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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.
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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.
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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.
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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
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Car prices have been artificially inflated over recent years to get everyone onto PCP, 45k for a Golf is a joke.
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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.
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Cash, for a 2.5 / 3 year old car. You'll be richer at the end of the day.
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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👍🏾
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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.
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90% of buyers use PCP. I always wondered how all these expensive cars are on the road.
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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!
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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.
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Got to love this video said the quiet bit out loud, the clever people don't buy new cars 🤣
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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.
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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.
