ACCOUNTANT EXPLAINS: Should You Buy, Lease or Finance a New Car

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Күн бұрын

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In this video we discuss four of the main ways you can purchase a new car. We go through what they are, which one is the the cheapest and how to work through the numbers, the opportunity cost and the psychological factors.
There are many other ways to purchase a car including a personal loan/ a financing option through a third party - but to keep things simple, I cover four of the most common methods in this video.
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⌚️Timestamps
00:00 - Intro
00:52 - What's the difference
02:34 - Which is the cheapest
07:27 - Psychological Factors
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This content is for education and entertainment purposes only. Nischa does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
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Пікірлер: 3 100

@nischa Жыл бұрын

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@dipladonic Жыл бұрын

I suggest that you buy a 2/3 year old car at auction with as low an interest rate bank loan as possible, then invest your savings in potash (a natural fertilizer) stocks.

@thewizardsofthezoo5376 Жыл бұрын

Investing in a second-hand car that holds its value or even increases in value over time can be a wise financial decision, especially if you only need it for transportation purposes. Putting the majority of your money towards a deposit for a flat can also be a smart choice, as property in London tends to appreciate in value over time. By paying a mortgage instead of renting, you are also building equity in your home.

@julesviolin Жыл бұрын

⚠️Absolute madness buying cars in any of the demonstrated ways I run an old car. Depreciation zero. In fact it's going up in value. We go on 2 cruises and 2 other holidays per year. My mate has new cars every 3 years and he's vastly in debt. It makes no sense to me at all. We have the last laugh. New cars are so ugly too with those unstreamlined brick wall ghastly front ends.

@tof3275 Жыл бұрын

@@dipladonic Vehicles are put up for auction for one of four reasons 1)finance repossession, 2)dealership dumping 3) the owner suspects a prospective eyewatering fix coming up 4) slight accident damage but still driveable

@charlesandaling179 Жыл бұрын

@@dipladonic Where do you buy cars in auction?

@johnforeman634 7 ай бұрын

Here’s another little tip that I learned to do. If you’re on a lot dealing with the salesman, when you finally agree on a price, confirm this price with the salesman a couple times. Say something like “so this is the final price right, this is the amount I will be paying?” He will say yes, of course. Because here’s what’s going to happen; he will turn you over to the finance office where you will sign the contract. And on that contract will be in bold print “documentation fee”. DO NOT PAY IT. It could be several hundred dollars. They will fight you on it, but you call in your salesman and say “remember when I asked you if this was the final price”? Get up and start to leave if you have to. They ALWAYS give in. I’ve done it several times. They are NOT your friend. They’re goal is to get as much of your money as they possibly can. Fuck em! Don’t just hand over money cause you’re in a hurry.

@Notfiveo0 6 ай бұрын

And that is why the fee is now posted on the walls of most dealerships.

@highwayhash2541 4 ай бұрын

It is for this reason you make an offer on the OUT THE DOOR PRICE (OTD), and let them break it down however they want to on their bill of sale. Calculate your Out the door price based on the Price of the vehicle (after negotiation), tax, tags and title. Now, how the tax is calculated, Tags and title fee are available on the local County's DMV Website in the USA and you should not pay a penny more than that. So, you have to do your research well in advance. You can also call your local DMV and ask them for these details. They will tell you how much would be the tax, tags and title for a certain model of the car. Out the door bill of sale in your mind should only contain - price of the vehicle, tax, tags and title. You then offer this number to the dealership, walk away if the dealership doesn't agree on this OTD number.

@bluwng 4 ай бұрын

You should read the comment I wrote . This is just another dedicated young person who can’t see the Forrest for the trees.

@RavarsenBlogspot 4 ай бұрын

Thanks I’d rather buy Tesla than deal with this

@adamf.8564 3 ай бұрын

No sales person will give you out the door prices in the lot standing next to a used or new car. NO way.

@andrewhurstcars Жыл бұрын

The biggest cost of a newer car is depreciation. Probably the most sensible is to buy a 3-5 year old approved used car outright from an official main dealer, which will have a 12 month warranty from the supplying dealer. If you know about common faults, and buy a car in good condition with a full service history, then you can look at 5-10 year old cars either buying privately or at an independent dealer. The main three things are condition of the car, full service history, and look at the MOT history to see if the car has been looked after properly - a catalogue of MOT warnings and failures is one to avoid.

@JohnCarlyle Жыл бұрын

I'd love to buy a 3 year old car that's depreciated, but I cannot find any! Saw a 3 year old electric Peugeot 208 at a Suzuki dealership, these were £25K when new 3 years ago, the price of this 3 year old car.......£25K

@bushmonster1702 Жыл бұрын

@@JohnCarlyle ridiculous

@Pinnednischa.. Жыл бұрын

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@xTango Жыл бұрын

>3 year old car with a bank loan esp when interest rates were very low is likely the best way to go

@marlonr391 Жыл бұрын

Buy a 5-10 year old car with full service history, check mot History as stated, and maintain the car yourself, i.e., service it yourself and any repairs in accordance with your competence

@joeallen8933 7 сағат бұрын

Being in the car business for over a decade, I appreciate this video. A lot of customers have questions about which is the best way to buy, and it mostly comes down to preference based on their driving habits and plans with the vehicle. In order to best help them, we need to ask questions. Many customers give inaccurate answers which leads us to suggesting an option that may not work out for them in either short term or long term. I understand a customer's reservations about providing information to a dealership. However, with the CFPB and other institutions protecting consumers, it's nice to have a video like this to refer them to. Like anything, there's a lot of misinformation out there, but this video is the best at accurately explaining the pros and cons to each option, what's most important to the buyer, and how to make a decision.

@TheTopStarz 7 ай бұрын

You have no idea how many people needed a detailed video like this about the different ways to purchase a car, myself included so thanks

@Patriarhul Күн бұрын

no lease! trust me!

@thedappercook Жыл бұрын

My dad who is a very successful financial advisor has always given me good advice. Only buy the showroom dealership car or a used car and for the love of everything holy make it Japanese. And only buy them outright, don't borrow money for anything other than buying a home, anything else, you buy in full yourself. Don't buy shit to impress people you don't know or like. Changed my life.

@thedappercook Жыл бұрын

@@BlueShadow777 save save save save eventually you will

@richtea7868 Жыл бұрын

I wonder what the presenter did with her car. Most people who preach this sort of thing don’t live it

@thedappercook Жыл бұрын

@@richtea7868 which presenter? What makes you think that?

@normandy2501 Жыл бұрын

What if you have no credit history? Do you just only use a card at that point?

@thedappercook Жыл бұрын

@@normandy2501 save your cash. Save save save. Show up with cash, negotiate. Get the job done. They won't turn down cold hard cash.

@Michael.P247 Жыл бұрын

The cheapest way to buy a car is through an unsecured personal loan from your bank. Get a loan from your bank, shop online & Pay cash for the car, and gradually pay back your bank the loan you borrowed. This works really well for high value cars that you want to use for a long term. Car financing in the uk 🇬🇧 is extremely expensive and addictive, don’t get hooked.

@MJHKing1 Жыл бұрын

This is how I did it. Half the money I had, half a very low interest bank loan independent of the dealership and making overpayments when I felt I could.

@vesleeful Жыл бұрын

Nice

@igormoloko1 Жыл бұрын

Same here, especially when interest rate was good.

@trenners1990 Жыл бұрын

The cheapest way to buy a car is to save up and buy cash..

@davidt8546 Жыл бұрын

@trenners1990 the 1970s called...they want their financial advice back 😂

@RedEyedHawk1 9 ай бұрын

This is the perfect video to describe car finance! I’ve watched about 10 similar videos but none as simple and concise as this one.

@fantasyguru26 11 ай бұрын

I'm an accountant in Canada and I have this question asked of me all the time. Particularly from self-employed individuals who want to know the tax impacts of writing off either a lease or depreciating the vehicle. There are several factors to consider but the most important one I ask my clients is what are your driving habits? If you drive more miles than average its likely best to go the purchase or finance route since leases have mileage restrictions. How long you like to keep your car is another factor. If you like to have a new vehicle every 3 or 4 years then lease option would be preferable. Interest rates also play a factor - generally lease rates in Canada are several points less than finance rates.

@TruVice718 Жыл бұрын

I too have calculated owning versus leasing and I tend to think they both balance itself out and it goes right back to personal preference - would you always like to drive something new or would you like to own the car you truly desire? I've had leased cars that do not cover tires if ever they blow out or expire, which is something that falls into maintenance cost. Also, these maintenance costs that you may pay for owning your car can be equated to the down payments that you may have to pay when entering a new lease. Depending on how often one may switch out their leases, they are subscribing to that cost. Great vid!

@maramures1 Жыл бұрын

So glad I’ve come across this video. I always wondered about the different options in buying/leasing from a dealership. Thanks a million for this content & your hard work that goes into all your videos.

@improveu7340 Жыл бұрын

Thank you so much. I really like how you dove deep into comparing the numbers, as well as comparing the benefits and costs of the different options. Very well done and much appreciated!

@megapangolin1093 9 ай бұрын

Bought a Porsche Boxster S, 15 years old, in beautiful condition, for £5K, drove it for 5 years, sold it for £5K. £1K for repairs and servicing over the term. I don't see any problems in saving money by being sensible and enjoying the joys of driving a fantastic car. Now to choose another similar car and do it again. Thank you for one of the most comprehensive and straightforward assessments of new car buying I have seen. People all over the country are pondering their choices and not knowing how to choose correctly, you did all of that thinking and explained it in 10 minutes. Well done. Great video. Now subscribed

@tj9382 2 ай бұрын

Seems to me that you have the best strategy of all if what you’re saying is true.

@megapangolin1093 2 ай бұрын

@@tj9382Well, I think it is true, but it is only my opinion, it may not be reality.

@carlsimmons305 Жыл бұрын

I have generally done fairly well in getting a worth while deal when purchasing a car…. Depending on which country I have been in depends if I have bought new & or used. If UK I tend to purchase outright & as I look after them, don’t put huge millage on I can usually get a good deal when coming to sell. I personally like the idea of not having monthly outgoings, however everyone has different requirements/needs. Interesting video, thank you 😊

@robedmund9948 Жыл бұрын

Option #1 is the only way to go. Pay cash. If you can't, save until you can. In the US a lease is called a FLEECE.

@evanl889 2 күн бұрын

By Dave Ramsey.

@debram8829 4 ай бұрын

Nischa, this video was really useful. My 15yr old jalopy has just given up the ghost - it was originally purchased nearly new on HP. I have been exploring car options and had no idea what PCP option was, but i was also considering leasing. Your thorough explanations were so helpful and now I know HP will be the right option for me again. Thank you :)

@torgutm Жыл бұрын

Recently found you and enjoying your content. I do work in the trade and regularly have to explain these options to customers. Be careful as lease agreements do have an element of interest buried deep in there. Also, you never touched on the good old fashioned bank loan, often the cheaper method of lending. You can often gets these approved and funds transferred in minutes online. Factor in depreciation on top and the actual cost becomes apparent. How to purchase really depends on the car itself, the individual, their usage, requirements and general temperament. Finally, I’m glad you touched on opportunity costs. This is a fantastic area to delve into. I’ve often shown customers with mortgages what the true cost of paying for the shiny new car outright means. It’s an eye opener!

@Pinnednischa.. Жыл бұрын

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@quex213 Жыл бұрын

You are the type of person who provides invaluable information which can change quite a lot in a person's life, but it is not just about information, it is about an insight and educating others about probably the biggest difference maker, which is mindset. You are amazing.

@davidpopoola7851 10 күн бұрын

I love the section of the video which discusses the opportunity cost related to each of the options to own the car. Gives a complete perspective for the everyday person living in London or the UK

@dip9631 Жыл бұрын

This is very good...thank you. I used a further option - a straight hire (with servicing included) with no right to buy. I paid a very large deposit so that I only paid interest on the remaining amount, which cost me £60pm over 3 years. The big deposit makes all the difference. However, the stress of keeping it perfect so there are no expensive charges at the end ( there were none ) has put me off and I'm now buying outright my next car...or rather I'm taking pcp with the manufacturer £2k contribution, then paying it off with no penalty immediately. Your video has confirmed this is the best option for me, especially as its a kia with 7 year warranty. Thank you!

@tinle9183 Жыл бұрын

Great video but you forgot to mention one of the key features of a PCP/Lease deal which are the mileage limits set out at the beginning of the agreement - as this is one of the main factors that determines how much the car is depreciated by. This could materially affect the value of the car at the end of the agreement term (for better or worse) and one key thing you need to consider before taking out the deal. Your car could be worth more or less than the Guaranteed future value and you may end up having to pay more (or indeed have equity returned to you) at the end of the term if you've overshot the original mileage limit.

@Darryl_Smith Жыл бұрын

Binge watching having just 'found' you. Solid advice well presented. Please do not stop what you are doing - lifting the veil and countering the drivel others peddle as sage advice.

@Pinnednischa.. Жыл бұрын

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@kenbroster9721 10 ай бұрын

Thank you - you really answer my thoughts on PCP - I have many friends who have gone down this route convinced it’s the best option!! Personally for the last 20yeRs I have bought high value 2 year old cars and run them for at least 10 years, ensuring that I religiously mot and service them annually not on mileage. My wife has a sports car that is 13years old with 40k on the clock and does 3/4k a year. The car is worth/valued at what I paid for it!. Thanks again.

@marekkuzian Жыл бұрын

Great comparison. I always felt buying outright a few year old car is the best option (and have been doing so for years) but never went through the efforts to calculate it all.. very informative and handy, also very clear. Thanks a bunch !

@clivecussens2573 Жыл бұрын

Great presentation., like your others. Your an absolute natural at explaining financial issues and on car finance you've hit the nail on the head. So many people dont understand what they are getting into and get badly ripped off. I've always bought my cars, never new, often using personal loans whilst my money is invested in equity based investments wrapped in an ISA.

@ingagwiji3433 Жыл бұрын

Hi, if you using personal loan... Is the interest rate not too high than a car finance?

@JB-ri6zp Жыл бұрын

But a 3 year old Camry is only a few thousand cheaper than new. This market ain't good 😢

@aymenelmardi7788 Жыл бұрын

I realized a long time ago that owing a car brings on additional expeses. Not just maininting the car etc.. , but when you own a car you are more likly to go places and spend money that you otherwise wouldn't..... Thank you for the informative video Nischa :)

@marksaxon Жыл бұрын

That's an interesting perspective. Never thought of it that way.

@desb3459 Жыл бұрын

Think that is taking it a bit far, then you are missing out on life experiences and you only live once

@aymenelmardi7788 Жыл бұрын

@@desb3459 Totally agreed, But if the expereince is worth it. You will go regardless of whether you own a car or not.

@hassyg4083 Жыл бұрын

not much of a life if you think like that

@sergiomontesdeoca5983 Ай бұрын

That is the reason to own a car, to go places. Ever since Daimler invented the thing. Otherwise you’re right.

@howardskeivys4184 Жыл бұрын

Another excellent video. Informative and an added bonus, pleasure to watch! In answer to your question, until about 6 years ago, I would purchase outright with or with out the help of a personal bank loan, a used car 2-3 years old. Now, I lease. 1 low monthly payment, covering tax, insurance, maintenance Etc. Some call it ‘just add fuel’. To me, it just makes sense. Keep up these excellent videos. I benefited from an excellent education. The one thing we were never tutored on was personal financial management. Thank you.

@Argee55732 Жыл бұрын

Stumbled across and thrilled to find someone so knowledgeable, honest and entertaining. And, very easy to follow!

@ciaranwalsh9963 Жыл бұрын

Thank you Nischa, wonderful video. Not many accountants have the gift of explaining finance in simple straight forward terms. This is a 5-Star presentation.

@Bugsy0333 Жыл бұрын

Are you her husband ?

@Pbadome1 Жыл бұрын

@@Bugsy0333 Did you look closely at him?

@Mirsab Жыл бұрын

@@Pbadome1 ?? Brits can't marry Indians you think?

@BollywoodMediaOnline Жыл бұрын

Agreed.

@drewtree888 Жыл бұрын

Simp

@utterlyexiged Жыл бұрын

This is an interesting one for me. I've always bought my cars outright at roughly 2 years old, and even though its a big outlay, i've always felt more comfortable doing it as i hate monthly outgoings. Meanwhile most other business owners i know swear by leasing and plough that initial saved capital into property investment, or their own homes.

@Acronoss1234 Жыл бұрын

It’s true a lot of business owners love leasing in general it gives them more flexibility.

@shipdog44 Жыл бұрын

I lease. I'm a real estate investor and I would rather have my money invested and I have a fixed expense. Have the oil changed and no other repairs, tires or brakes for three years.

@adejuwonodugbesi3102 11 ай бұрын

Worth mentioning lease has bunch of restrictions, also u are not completely immune in those 3 years if it’s not wear n tear like accident or damage you are paying from pocket my friend, but cheap and outright. Sell when needed. Second hand market still has value.

@shipdog44 11 ай бұрын

@@adejuwonodugbesi3102 I live in the US and I drive Hondas which are very good quality and hold their value better than anything sold here. Ironically My lease was up last month, and I purchased the car outright, so I own it now without a payment at least for a while. I'll probably sell it and invest the cash and lease another vehicle at the end of the year.

@Sam-2468 8 ай бұрын

@@shipdog44 I'm curious to know what you do/did to be able to get int real estate investing in the first place. Is investing your full time job or a side hustle?

@Jarob9 3 ай бұрын

I went to a dealer with the intention of purchasing a Genesis GV70 3.5. for cash. In discussions, it came up that I qualified for a 1.9% finance option. However, I did not want a monthly payment of nearly $1000. Although not the very cheapest option, I opted to put $25K down to reduce my payment and financed $30K. I did well on investing the $30k, so I was happy with this "Hybrid" decision. I considered a used car, but the pricing was only a few thousand less than the new one with a longer warranty. Thank you for all the wonderful content and I am so happy I found your channel. Cheers!

@mary-alice Жыл бұрын

We bought our used car outright. It wasn't a cheap used car at £6k. We had saved the money and just paid it. Car dealership pushed to the hire car but in the end we would have spent about 2k more than the buy now price. Honestly I'm really happy to see that someone is explaining financial terms in simple words but at the same time shocked at the amount of people over-spending money and living paycheck to paycheck. Keep making these videos because more people are going to need your advice.

@Bob-ts2tu 8 ай бұрын

excellent, someone after my own heart :)

@stefanosparacio5983 8 ай бұрын

The whole of the UK has a shocking overspending culture, some realise when they go abroad on holidays

@LegalizeTheNuclearBomb 6 ай бұрын

Well I've also bought my car out right. It's a 2019 Mazda 2 SE but I've also been in a Mercedes AMG. I don't actually blame people for financing those types of cars anymore because they're really, really fun to drive lol.

@olebogengsunday1847 6 ай бұрын

But 2nd hand new cars only...Cash if you can if not...on monthly payments. You are still saving more than the brand new car owner.

@chillwill5080 5 ай бұрын

Well, corrupt liberal governments are over-spending money regularly and operating from tax collection to tax collection. So why would citizens be any more responsible? Patience is key my friend, when the credit collapses and bankruptcy come, it will be your turn as you buy for pennies on the dollar.

@shortwalk8551 3 ай бұрын

Thanks for posting Nische, I could listen to you all day!

@mathewolorode4777 Жыл бұрын

Right video at the right time. Currently considering buying a new/approved used car but the interest rate for an approved used is ridiculous at the moment. The video gave thorough insights and how you can weigh your options. Thanks!

@Pinnednischa.. Жыл бұрын

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@trish25star48 Жыл бұрын

This was really helpful!! I bought an AUDI TT a few years back - when analysing the figures on the PCP and the charges I would end up paying, I decided to get a personal bank loan. The interest rate was way less Vs pcp. I now also own the car outright and hope to sell it very soon to take advantage of the used car boom, hopefully I’ll get a decent return!

@MrBottlecapBill Жыл бұрын

Yup........personal loan or if you already have an open line of credit, which usually has a much lower interest rate, use that and make your monthly payments to yourself.

@DavidEVogel Жыл бұрын

decided to get a personal bank loan. So there is no lien on your title?

@SenszR Жыл бұрын

I’d say be quick as used cars are well on their way back down lol 📉

@lav7161 Жыл бұрын

How much?

@clivecussens2573 Жыл бұрын

Best option mate

@Cajundaddydave 10 ай бұрын

Thank you Nischa for a thorough overview of car purchase options. Although I have purchased many new cars in the past with 20% down and monthly payments, I have not purchased new in the last 10 years. I feel that quality modern cars like Toyota, Lexus and Honda are far more reliable than cars of just 20 years ago so I typically buy a 5 year old that has been well maintained @ 40% of the new car price. Sometimes I will use financing as a negotiating tool as the dealership will get a cut on the loan and I will get a favorable price. Then simply pay off the loan a few months later and own the car outright. Lease purchase may be favorable to business owners as they can write off some or all of their lease payments as a legitimate business expense, lowering their overall taxes. We typically logged far too many miles on the car which would trigger a stiff milage penalty upon turn-in after 3 years. For us the lease option did not make sense. Cheers!

@davidprentice8108 17 күн бұрын

Thank you for explaining this important topic in such simple, understanding terms. I live in South Africa. I'm also an accountant. 😊. Generally I purchase a 2 year old 2nd hand car from a reputable dealer with around 40,000 kms on the clock. That would normally allow you 20-60,000 kms and/or 2-3 years of manufacturers service plan and warranty.

@LdHeer Жыл бұрын

Thank you Nischa your channel is one of my favourite by far , your content is so real and the facts you talk like our daily applies most to us . much appreciate and keep giving us more intel about finance.

@chico1287 Жыл бұрын

Great Vid Nischa. After many years buying new cars outright and selling them on for a loss I decided to try buying older cars with above avg mileage from the now ubiquitous car discount supermarkets. The cars being sold in these supermarkets are normally ex fleet/mobility cars so you will need to be a little careful on how to pick a car that has been well looked after (check the interior, body and boot) and well maintainance records (make sure it has a main dealer service history and no big gaps between services e.g. I bought my dream car for 16.5k that was 3yrs old with 50k miles inc regular services at a main dealer. This car would have cost me 36k new given it had all the options I was looking for. I can still sell the car for 12-13k today after nearly 5yrs ownership... This is not for everyone but I think buying new is too costly in that you pay all upfront and then suffer depreciation over time. Best to get a good used car in my opinion with options that will make it desirable and hold its value.

@fionnmaccuill415 3 ай бұрын

Wow!! Last time I watch your channel you had like 250k subs. Nearly 1 million? Delighted for you love the content

@has25252 6 ай бұрын

Nicely done! It's interesting to see how it's being done in the UK. And yes, the dealer will always push you to the higher profit option. One thing you didn't address is a fundamental question for an asset purchase - how long do you intend to keep it for? I know you used a 3-year loan life but if a person is buying a car they need to put some real thought into how long they intend to keep it, the maintenance and operating costs, etc. I know this video was not intended to be exhaustive in this regard but it's important to consider those things any time one buys a non-disposable item like a car, kitchen appliances, a house, etc. I bring it up because someone can look at purchasing outright thinking they'll keep it for 20 years, but then get eaten alive with maintenance costs.

@travispipkin2434 Жыл бұрын

Great video. Committed to and highly recommend cash/outright for both the financial & psychological reasons you point out. Interesting insights about the re-up / renewal options that car dealers are pushing to help their bottom line ... super similar to the way phone companies structure their advertising / payment options these days. The only difference is the phones are a little less expensive.

@Pinnednischa.. Жыл бұрын

T͟h͟a͟n͟k͟s͟ ͟f͟o͟r͟ ͟w͟a͟t͟c͟h͟i͟n͟g͟!͟!͟!͟ ͟C͟o͟n͟t͟a͟c͟t͟ ͟m͟e͟ ͟o͟n͟ ͟W͟h͟a͟t͟s͟A͟p͟p͟✙✙➊➋➊➌➍➒➎➒➌➍➋✔͟️.

@MrBottlecapBill Жыл бұрын

The phones are getting to the point where they cost as much as a used car. 😆

@jdmcastelino Жыл бұрын

Great analysis ! Quite similar here in Melbourne Australia. I own and operate a business and always use the hire purchase option because of the opportunity cost of up fronting the full value of the car. Our hire purchase option does not require a deposit because it is registered to a business with a great credit rating. Also, we never purchase a brand new car - it loses 10-15% of its value as soon as you drive it out of the showroom although, arguably, in these times it may be different. We always purchase a demonstrator or a very low mileage vehicle that is dealership sold and is covered by the statutory warranty. At the end of 5 years, we sell the vehicle and hire purchase a new one for another 5 years. This way, we protect our cash flow as well as receive a “bonus” into the cash flow when the vehicle is sold. Moreover, we claim depreciation annually on our tax returns.

@bradparmar4728 Жыл бұрын

ie, due to commercial reasons. Plus Differnt countries have different Tax implications!

@josephkelly4893 7 ай бұрын

This is why I buy my cars with cash second hand after they have depreciated, usually at about 10-12 years old, but I am lucky that I can swing a spanner and do all my own maintenance. Great video

@gilleslafreniere 7 ай бұрын

Thank you, I am at the moment discussing with my daughter as to the best method for her to 'buy' a car. You provide valuable 'uninterested' advice. I forwarded your video to my daugther. (Thank you from Canada).

@amyg3817 Жыл бұрын

I just bought a new car and I opted to pay cash. I don't have any stress about monthly payments and high interest rates. Thank you for the info, a few people tried to convince me to lease and I really wasn't interested. Glad to know I made a good decision 😊

@rugby86 10 ай бұрын

It’s good you stay firm on your decision, of course since you have researched all the avenues. Enjoy the car you own, for the years to come 😊

@MrDominic152 10 ай бұрын

Most millionaires still take out a lease on their super car purchases, that should tell you something.

@geecars6263 10 ай бұрын

@@MrDominic152 Because they can usually write the lease off against tax as a business expense

@BenavidesMariana 8 ай бұрын

You did good... I will do another video showing the real cost of leasing.... be free and spend what you can. Many people is having a hard time with this. Also today we have so many contracts that are really may have bias.

@Naalimit_ 8 ай бұрын

Yes it says they are super riche.

@ryancurrell8837 Жыл бұрын

Great video. We bought a 3 year old astra back in 2001 for £5k. And it's on its lasts wheels but still working. Looking back through the receipts, the car has only cost an extra £5k to fix any issues, repairs, MOTs and servicing, over the 22 years we've had it. That works out on average less than £500 a year to buy and maintain that car. (were ignoring petrol and road tax because we all have to pay for it). And yet, my friends tell me, 'get a new car and not have to pay to fix it every year'. And I reply; 'yes but, I you are paying £300-£500 a month for that previlege. So how does your method work out financially better off? So...£500 a year for a car, or £500 a month....hmmm not a difficult decision.

@Windsofchange2023 Жыл бұрын

The original owner paid 72000$ Canadian for my current 2011 Acura mdx that I bought for less than 20k… calculate that loss per year! They also drove it less then 10,000km per year

@fsfernandes20 Жыл бұрын

When some buy a new car he knows that is not used he is the first time user.

@jev8196 Жыл бұрын

Its all good if nothing go's wrong with the old car & its well maintained. You had mostly good luck. If you did it again you'd probably have a different outcome

@RS-xx9ve Жыл бұрын

I've alwayas seen it that way. But I now have a BMW looked after meticulously from new. Its now dead (garages don't know how to fix it)with just 80k miles on the clock. I'm disgusted with BMW and their "premium marque" claims.

@davidviner4932 Жыл бұрын

OK if you enjoy driving an astra, fill your boots

@hbsong9964 3 ай бұрын

Thank you for making this video, i'm looking to buy my first car later this year and was pondering on the best option.... thanks again.

@terencehammond8878 2 ай бұрын

Excellent well and clearly explained re car financing .PCP is designed to suit one party only ,the dealership selling you the car for the most obvious reasons ,it dictates the price ,the terms, and then ensures another sale in more than 80% of transactions . Your advice to buy a used car is spot on , if you maintain it well and don’t succumb to to the bells and whistles of the latest models you will get the maximum life out of your dearest purchase after your house .

@sali2998 Жыл бұрын

Well done. Very clear and to the point. I personally think buying a 3/5 year old car outright or on a interest free credit card is the best option. With the card you can spread the payments, will cost you nothing extra.

@eetwtszdfsregreshteshu Жыл бұрын

very smart

@audify3833 Жыл бұрын

its also the only halal way along with leasing tbf, just need good credit score. I'm young and would definitely try to do this hopefully

@tahmiduddin4920 Жыл бұрын

I don't usually comment on KZfaq videos, but your channel is brilliant. As someone who's recently entered the Banking world in middle office. It would be great to see a video on career progression, salaries, when to leave etc. Keep up the good work!

@Pinnednischa.. Жыл бұрын

T͟h͟a͟n͟k͟s͟ ͟f͟o͟r͟ ͟w͟a͟t͟c͟h͟i͟n͟g͟!͟!͟!͟ ͟ ͟C͟o͟n͟t͟a͟c͟t͟ ͟m͟e͟ ͟o͟n͟ ͟ ͟W͟h͟a͟t͟s͟A͟p͟p͟✙͟➊➋➊➌➍➒➎➒➌➍➋💯💯

@faraazkhan7801 7 ай бұрын

Thanks for all the knowledge. Honestly I always believe in buying out right if you can, worst case scenario I would go Hire Purchase but with Lease or PCP you just end up paying more than necessary. This is of course with the intention of keeping the car at the end of it. I bought my car last week and got it out right, may have cost me a little bit more out of pocket but with the belief I intend to have this car for the next 10 years or so, I believe it is more worth it in the long run.

@overlytiredbutstilltrying484 Жыл бұрын

Super interesting video. Paid cash for a new car as we hadnt been in the UK long enough to qualify for finance (no credit history). Would have gone for used but the price differential was very small at the time. Worried we were losing out but your video explains we probably made correct choice. Dealerships make the finance choices very confusing by offering discounts ect and it gets hard to properly compare the options. Next time we change cars, will probably do the same but go for 2 years old if the used-price bubble has burst. Thanks for the clear explanation!

@pauljm59 8 ай бұрын

I’ve leased many cars. With & without a guaranteed buy back option which is really just a more expensive lease but less hassle. Recently we paid out both leases & now own both cars from a mortgage drawdown. I would be interested to hear your thoughts on this idea. Initially it was cheaper finance now it’s slightly worse.

@iankings6405 Жыл бұрын

A big consideration is what mileage a year are you likely put on. If it’s used mainly local, with the occasional longer distance journey. Like an annual holiday, buy your own with low or reasonable mileage.

@johnettaw30 Жыл бұрын

We usually rent a vehicle for longer trips like driving for Vacation but even with the car we own that's not a lease we rent for long trips.

@superbike1 4 ай бұрын

Hey Nicha,your videos are very important to a lot of people.

@jakesteele13 Жыл бұрын

Great video. Thanks really helpful. Had my car stolen and had to buy a replacement pretty quickly in a tough market. Already had a loan of 12k from nationwide at 2.3% (long term customer) and went and got a money transfer of 10k from virgin credit cards (£400 charge). Meant I had 0% interred for 12 months on the 10k. Enabled me to buy a more newer / more reliable car I could leave with my family while I was away traveling with work. 👍🏻

@juanignaciocordova9520 8 ай бұрын

There is a 5th option (at least in the conuntry where I live) which is to ask for the PCP, and once they give you the car you pay the whole amount. That way, you get huge discounts and you do not need to worry about paying interests. Thanks for sharing this video!

@originalkk882 8 ай бұрын

Did exactly this with a new VW in the UK. The dealer wouldn't give a discount for cash, but there was a "contribution" from VW Finance for PCP.

@laz7354 7 ай бұрын

Agree. Cash is king.

@open_water2411 6 ай бұрын

That’s what I did. Saved a lot of money and still have the car 7 years on. Another 3 years and I’ll be back at the dealers again.

@justwait9822 5 ай бұрын

Hmmm, there must be another acronym for PCP that I'm unaware of cause this sounds like some kind of illicit drug trade.

@bobolink890 4 ай бұрын

@@justwait9822 So right. People just take a bunch of drugs and hallucinate that they got a car for a great deal.

@Willhill12345 10 ай бұрын

Really interesting video! As a young person i wish I’d been tought this sort of thing in school. I had PCP for years and was sick of being ripped off so last year I bought a used audi TT from a private seller got it under retail price and got a loan, putting down 23% deposit best thing I ever did

@x.kasiouris5503 2 ай бұрын

I am thinking for the pcp but witha big deposit and the intention for a final balloon payment

@mladenbrocic4936 10 ай бұрын

Hey, great smile! I love those earrings! I'm grateful for your endeavor to make complicated terms so easily understandable!

@syedharisahmed2982 Ай бұрын

Well explained, I have been through all of these options; you have made these principles very clear with the examples!

@47PANADERO 10 ай бұрын

Having driven for 57 years I bought my last 2 cars at auction each about 4 years old with low mileage and kept each for around 10 years. I did all my own servicing. I sold each for around 25% of what I had paid 10 years earlier (£4500). Annual depreciation, around £300. Those were the days.

@Desuetus 7 ай бұрын

I never heard of car auctions. Are those cars that have been taken from owners unable to pay their bank loan and sell at a discount compared to normal market?

@Jeremycorbynl 3 ай бұрын

No cars at auction are shitters and should only be entertained by someone who knows what they are doing.

@ianh.6825 Жыл бұрын

Year 2000 Nissan Primera. I paid £350 for it in 2016. It had a genuine 45,000 miles. It's 100% reliable, is good to drive and still shines up pretty well. I do all the servicing and maintenance myself.

@dwaynelamberts3696 Жыл бұрын

Are they good cars?

@craivold Жыл бұрын

Great effort Ian. Cars generally got pretty good in the late 90s onwards (especially if you stick to Japanese and some German stuff). If economic motoring is the main priority when buying a car you'd be mental to buy new. My current car (TT 3.2) cost me 2.1k. Costs me about 500-600 a year to keep it on the road. Drives lovely. Depreciation, zero 🥰

@ianh.6825 Жыл бұрын

@@dwaynelamberts3696 Yes, I think so. I've owned two. They were praised at the time for their build quality and handling. You have to consider that the newest Primera in the UK is going to be about 17 years old now. I don't see many on the road now, but it's worth looking out for a good one on AutoTrader, Gumtree, Ebay, etc. which you'd probably have to pay more than £350 for. I was lucky!

@SenszR Жыл бұрын

Where did u get such a bargain

@marufuddin7899 Жыл бұрын

My last two car purchases have been via credit card with balance transfers. Has worked out really cheap as the fee is a flat initial fee of around 3%. Once the initial balance transfer ends, transfer the remaining balance to another credit card and start again :-)

@allanbriggs807 9 ай бұрын

Great video. And a good analysis. When I was driving high kms (50-70K pa) I leased the car - no increase for miles driven. Later on when I was holding the car for longer I bought (cash) 1-2YO pre owned cars with low mileage. Eg my present car was i year old with 7,000kms on it. New price $41,000 AUD and I paid $29,000. I still have the car.

@JeffCAustin 10 ай бұрын

Good clear explanation. One element you have not taken into account is that as a cash buyer, you can often negotiate a discount on the list price, which would obviously improve the outright purchase option

@JoeyBrod 10 ай бұрын

Wrong. Cash buyers are less valuable to us. It takes us 10 mins to set up your finance usually and the finance company gives a commission our way. I’m more likely to give you a monetary gesture towards your car if you finance it because I can pass some of that commission back your way. If you give me cash, I’m having to take the little margins out of the car for you. Finance and cash, either way we get paid in full.

@ChrisMakariou Жыл бұрын

You explained everything really well. The one thing that in my opinion you could have explained better was the PCP option. Contributions are indeed extremely high, so they do indeed play a role. So when you were comparing all agreements to a PCP, then taking into consideration that the A3 currently has a £3,000 contribution is a massive figure to simply dismiss out of the equation. You do NOT get that contribution in HP or Lease. In addition, the last Guarantee Value of the car on the PCP is also not exactly how much the car will be worth in three years time when you want/can get into a new car. It’s very likely that you if you did the miles you stated and market was okay, that the value of the car will indeed be higher than the final payment, therefore you have build Equity which can be used as a deposit for the next car. Lastly, customers on PCP, going for another PCP, in Audi get an additional discount as a renewal customer which is actually really strong discount. Put all that into play, and that reduces your total costs for the car dramatically compared to HP and leasing. Cash? Yes definitely a cheap option to buy the car, but as you said, why LOCK £30k in a depreciating asset. Hope this makes sense.

@G.5.B.H.M 10 ай бұрын

Because I can....

@sal7704 10 ай бұрын

PCP Tend to offer lower interest rates too comparing to lease or HP. They want to lock you with the brand, so it needs to be attractive somehow.

@arohaodufu7998 10 ай бұрын

I did lease with my BMW X5m50,drove only for 3.5years,took it back for the new X6M60i,got lots of money back and put it as a deposit for my new house…no deposit,just drove out… got 4 other fully paid off cars, so leasing new one every 4 years is ok for me..

@matthewgaler6544 6 ай бұрын

Chris mak… yes she’s far smarter than me mathematically wise… however as you say, the PCP, big discounts and I’ve yet to ever ‘put in ‘ more than £200! My last one , Audi , brand spanking new. Zero deposit!… yes , you have the monthly bill but you’ve never locked away any chunk of money. Probs won’t work for everyone, but if you get a decent deal, want to drive a new car , it’s the way to go. ( imo) …

@varvara69 10 ай бұрын

Very interesting video, i like the table for the comparative costs. Whilst I fully appreciate that this video focusses on financing options I do believe that the type and brand of vehicle you buy plays a major role in the cost implications overall. I have always bought outright and have always bought VW or Toyota due to reliability, low maintenance costs and good resale value. If an individual wants to purchase a car for style, image, reputation etc without considering maintenance then they are definitely better off going with leasing and returning it to the company when it is needs maintenance.

@rajzavery1107 8 ай бұрын

Great vid. Thanks! Would be great to see the same scenario in the context of a limited company specifically the tax and vat implications. .

@wellspring4582 Жыл бұрын

@Nischa You are awesome! Your advice is so incredibly helpful! Thank you so much for doing what you do!!

@davidalder6558 Жыл бұрын

Excellent analysis Nischa. I did your last option of buying a 3 year old well maintained Honda outright and it has been fantastic. Owning also reduces insurance costs. When you finance in Canada, you are required to have full insurance coverage. Buying outright and being a bit of a risk taker had me paying just the minimum legal insurance. I let the original owner take the depreciation and the shipping costs. Dave

@simonw3872 Жыл бұрын

Same. Honda is probably the best name to bet on. 👍

@bradparmar4728 Жыл бұрын

Yes, in North America there is a charge called preparation n shipping on Top of the negotiated price of A New vehicles only!

@donnaswesternmoments8352 8 ай бұрын

Made payments on a truck for 4 1/2 years . Paid 10,000 8 years ago. Added a transmission as well. Planning on keeping it from now on.

@paulhart1218 Жыл бұрын

Excellent video, thank you. After years of leasing or PCP I have recently found the pleasure of buying depreciated luxury cars outright. The enduring myth that they are unreliable, expensive to run rust-buckets keeps values down, so you can have a car that once cost someone £70,000 for under £20,000.

@CianPacifico Жыл бұрын

Here comes an another amazing video 😊 ... Thank you Nischa, I wonder how you manage to put quality content every week...

@nischa Жыл бұрын

Glad you enjoyed it!

@CianPacifico Жыл бұрын

@@nischa 😊

@Stratulax 9 ай бұрын

I took out a bank loan at a pretty decent interest rate and paid both cars off well ahead of the term. For my next car I’m considering a signature loan together with some of my own money, but I am still weighing my options and shopping around since things are a bit more crazy lately. I’m also considering one of the car services where you shop for cars via their online store and the car is delivered to your door. This might be the best because you can not only shop the options and colors, but get more of exactly what you’d like or want with the most minimal effort, IMHO.

@dennistonrockstone 5 ай бұрын

What cars were they? if you dont mind me asking

@Probity100 3 ай бұрын

Is this a USA or UK thing ?

@20shourya 7 ай бұрын

great video, very educational! I have always felt buying a second hand car 4-5 years old is the best option as long as you can trust the dealer! It keeps the costs low, and if you are decent driver, and take good care of the car, you can pretty much sell it for not much less, and then upgrade to a more modern vehicle. This is also helpful in the event you might be moving overseas say for work or other reasons, you just sell this one off, and get one there :) Really don't understand buying it out brand new, and certainly don't understand taking out a loan to do that!

@DougdeUrioste_1 3 ай бұрын

Thank you for the great side by side analysis. I have always stayed away from the lease option because of the mileage constraints. As such, I'd put a down payment and take out a loan - always was a joy to ride home in brand new car. I would subsequently drive the car for a decade or more. I now do as you suggested - I pay cash for my "new" car or truck, that is 2 to 3 years old. I had held on to my previous cars so long that buying a 'new' used car was such a major upgrade, I have the psychological experience of getting all the new bells and whistles at a much lower price, with the ability to pay cash and buy it outright.

@mohitbhagwani Жыл бұрын

Hi @nischa, I really enjoyed your video and it covers pretty much everything you have to decide financially when buying a car. Although, you have not covered one aspect which I have used to buy a car. You can take a personal loan from the bank and use that cash to buy the car outright, while repaying loans in EMI. Often interest rates on the personal loans are cheaper than the financing the car. Even 3-4% savings is a huge amount in a long run.

@JohnyWallker1 Жыл бұрын

Yep, bought a 2018 BMW; took a 7k personal loan for 2 years at 3.5% APR.

@JimSefton Жыл бұрын

I thought that, and spent a looong time negotiating with the dealer. They ended up throwing in a 3 year servicing deal with free MOT's that balanced out the difference. Not sure if they fooled me in some way, but seemed to make sense at the time.

@chuck1622 Жыл бұрын

@@JohnyWallker1 Where are you from that an unsecured personal loan is less interest? Most manufacturers rates are well below personal loan or credit line rates. At least in Canada anyway, and I imagine same in the USA or Europe. And surely not recently at 3.5%.

@JohnyWallker1 Жыл бұрын

@@chuck1622 very much depends on your credit score, how much cash you already have in the bank as well as all the special deals you get with your bank. I took the loan from the bank where I keep my main accounts. When I took the loan I already had cash in the bank way in excess to cover the loan straight away a few times over. I've been a customer with the said bank for over 10 years and they knew very well my income and expenses and how much cash I normally keep in the bank at any point in time. I initially wanted to borrow less (half of the sum) at a much higher APR, however, the bank came back to me with a deal to borrow more than I needed at a lower rate. I also took the loan during a time when interest rate (in the country where I live) was close to zero. Finally, now thinking about it I must admit that I paid a one-off fee (when I took the loan) that would otherwise raise the APR from 3.5 to 5%.

@electricfeel007 Жыл бұрын

@@chuck1622 I want to know where he is buying a 2018 BMW for 7k? I can flip those all day long.

@superduper9357 Жыл бұрын

One thing to remember with lease is remember to not hand it back with damage. The lease company will make the repairs with their preferred repair company and you will get rinsed!

@philiproberts6947 Жыл бұрын

Not always true,yes with some companies but not all. We have leased for around 10 years and we always ask for any damage charges up front before starting a new lease. For example my wife’s previous car had a couple of car park dings and stone chips and a small dent in the rear passenger door where it blew open trying get the baby in the back one day,and some wheel kerb damage. For all this she got charged just over £200 at the end of term for damage which wasn’t consistent with wear and tear. Our lease company sends out vehicle inspectors when it goes back to prove no damage was done while it was taken back. But as you say it’s something you definitely need to be careful of and also potentially have money to one side just in case.

@dg-hughes Жыл бұрын

Every scratch, every blemish, every stain on the carpet, every scratch on the windows. Unless you lease again and all those unforgivable things are... forgiven.

@GedandMichele 10 ай бұрын

Thanks for spending the time on this comparison. Only comment I have is that if you were purchasing outright, I'd expect to get a discount on the £30k especially if via a broker or reverse auction. When you look at the finance options, they generally don't discount at all or by so much. I generally use a reverse auction, take out the dealer finance to get additional discount and then pay it all off within 14 days 🙂

@terrydelahunt842 Ай бұрын

Not that simple, they want you on the finance deals like pcp as they are making more from that, and locking you into an ecosystem as such. So they will not overly incentivise you to buy outright.

@Ultrageizt 10 ай бұрын

Good audio and a pleasant face with great information, Thank you!

@franchic9565 Жыл бұрын

Kudos to you for a really interesting and super clear video ! Very helpful comparison. Another unexpected cost to factor in for a Lease or a PCP is perhaps a more expensive insurance policy providing better coverage. I leased my last car, and was so stressed about getting any nicks or bumps on it, that I got an insurance policy which was a lot more expensive that what I'd usually get. I later bought a used car outright, and just got liability insurance which helps me save a lot on car insurance. Also, with a leased car, there might be times where you're reluctant to use it for long distances in order to avoid going over the mileage, but then you spend more money on airplane or train tickets, which can get expensive if for a family......

@colechapman6976 Жыл бұрын

Exactly. Also, they nickel and dime you if there is a scratch or scrape on the car. If a shopping cart hits it, it could mean lots of fees from the person you leased from. When you buy a car, it is just cosmetic damage. I also think people get into this headspace where they need to spend 600 a month to get the latest and greatest in tech when a car from five years ago has all the conveniences one could need depending on the trim you buy. I would also never want to lease because of the uncertainty of the economy. You never know when the next job loss might occur, if you get into a personal accident, or if something else happens. I would much rather feel secure knowing nobody can take my car away if any of those occur. Imagine leasing, losing your job, being unable to pay the lease price, and you end up with no car in a car-centric society such as the United States. It just makes things that much more difficult for you.

@malvinking4914 Жыл бұрын

very good info

@matthewbeesley5850 Жыл бұрын

Here in Canada, in 2016 we bought a new car with 0% financing. I had saved about 1/2 of the $30k needed. With 0% finance it was cheaper to use their money rather than me saving, since their money was free. Here in Canada, back in the 2010s new cars often came with 0% financing, while financing for used cars would be 5-8% - so on a used car you may save on the sticker price but the financing cost gets you. We keep our cars for at least ten years, so depreciation doesn't really matter.

@Musician-Lee Жыл бұрын

We have 0% financing in the UK but the manufacturer is inflating the purchase price. It’s almost impossible to establish the “Real cost” of a brand new car. It’s usually much, much higher than 120% of the cost of manufacture, which would give the dealer a decent margin. So when you pay 0% you are paying a lot more than the car is worth.

@takaedzachirowodza601 Жыл бұрын

There is nothing like 0% financing. Lol. They just add the cost of finance to the actual price. Read comment above from Lee

@SenszR Жыл бұрын

As mentioned, 0% finance just means an increased purchase price lol

@marciabraga221 Ай бұрын

Hi Nisha. I know this video is a year old but it's very actual. I mean, your explanation is quite timeless. Very useful. Thanks. I chose the first option. But, I had no money so I had to buy a small moped. 49 cc. And I used American government COVID rescue money. Around $2300. At that time I was 3 months behind on my rent after losing my job. So I chose to use the money to buy the moped and work as a Uber delivery. In 5 months I paid my debit. Kept going for another year and at the end I had a month worth of my bills in a savings account. Got a job because delivery is hard. Now I have 7 months bills on my savings. And I am applying for a better pay job.

@TheWajio 3 ай бұрын

Hi, we first leased our BMW 320d in 2010 via the Motability scheme then purchased it after 3 years & we still have it 13.5 years later ;-)

@cesarkastoun5752 Жыл бұрын

Very good video. One additional complication is that, often, maintenance is covered as part of the lease payments. So you’d have to add maintenance costs to the Hire Purchase option, to make it comparable. Also, 11% on a 3-year car loan? Wow. Currently paying 0.9% on mine….

@stephanemorin7145 Жыл бұрын

noone gets 0.9% Bank of England rates are 4% you can only get 0% PCP on a new car when you pay the full whack. 11% is the average for a HP or PCP loan most people pay lot more right now.

@geecars6263 Жыл бұрын

Point me in the direction of that deal, I can get the best part of 5% on a fixed rate bond, so borrowing at 0.9 would be great

@1d2a3d4d5i6o 8 ай бұрын

@1d2a3d4d5i6o 1 second ago if you had gone to a broker depending on the car they offer you a discount and if you go for PCP they give you a discount I have just ordered my next car a Skoda Octavia SEL 1.5. retail £30,000 doing it through a broker and PCP i have saved nearly £7,000 and you can still pay it off in 2 months so it is yours..PCP payments are only the minimum amounts you can pay, you can pay it off. Good luck oh and at the moment Skoda are selling 2 years servicing for £250 if bought on PCP.

@antWales1 Жыл бұрын

Excellent video. Comparing like for like, for the PCP option, I would have still used the £16k predicted resale value rather than the Guaranteed Future Value figure of £15k as you are missing £1k of equity and you could buy/immediately sell on to realise this. You can also still get a decent discount on outright purchase if you shop around or go through a broker. As to PCPs, the biggest misunderstanding is that whilst you amortise only the difference between the Purchase Price net of your deposit, and the GVF, you are paying interest on the whole amount financed (purchase price net of deposit). The finance company is making big money on that slug of non-amortised loan. I would either lease or buy new with a discount, put down as big a deposit as you can afford, find the cheapest personal loan rate and borrow over a period that results in monthly payments you can afford.

@antonyg7490 2 ай бұрын

Wow! Brilliant video this has absolutely helped! Thank you 🙏

@AnthonyBrown12324 8 ай бұрын

Very cogent and thoroughly researched. Always thought buying a car in any finance deal would cost far more. You have proved me correct. Better to get a loan from a bank if you have good credit. You have to be prepared to be patient and visit several dealers and look out for deals / promotions and get the best value model

@bilaalkhalifa5159 Жыл бұрын

Hi Nischa, firstly thank you for your video's, finally somebody from the UK, helping others in straight forward simple language that anybody can understand, love this video, if only you recorded the conversation it would be funny, seeing the sales team scratching their head, as they've been beaten at their own game 🤣 Thank you again God reward you for your efforts ❤️

@jimc4839 Жыл бұрын

😘😘😘😘😘😘🤣🤣

@lifepassion4743 10 ай бұрын

Not sure why you think the sales team was "beaten at their own game"? It sounds like she has been given good advice and information. All thats happened is someone has gone to work and has had their times wasted by someone who wasnt interested in buying a car. Yeah thats hilarious.

@StuGoldie Жыл бұрын

Great and informative video as always Nischa! Having formerly worked in the car business, two other considerations came to mind that are definite advantages of leasing vs. any of the ownership options. One: what if the car is a 'lemon' (has unacceptable reliability issues in the first few years)? Two: what if you are in an accident and then the vehicle has the accident and subsequent repair on it's permanent record (which would seriously affect the value if you were to try to sell it). In both of these cases, leasing offers the huge advantage of just returning it at lease-end and then it becomes the dealer/manufacturer's problem!

@Henry0870 Жыл бұрын

+ another thing to take into account, if you lease, than you don’t need to worry about maintenance costs & insurance & any road taxes, as that’s included in your monthly payments. (At least that’s how it works in the Netherlands)

@gordonduff22 Жыл бұрын

Leasing is fine until you have to return the vehicle... Be careful with leases. Read the fine print. It's rarely a question of just handing back the keys! Tire wear, marks, paint chips, mileage, small scratches, scuffs. They throw the book at you.

@MrBottlecapBill Жыл бұрын

@@gordonduff22 ..and if you were in an accident as the OP suggests that book will be large and heavy.

@vondoomgaming1224 8 ай бұрын

One thing to consider with leasing is that if your car is stolen or written off, the insurance company will only pay the market value of the product. If this value doesnt match what the leasing company company debt is, then you could find your self with no car and many thousands of pounds of debt. If this is your chosen route, then I would strongly suggest taking out gap insurance, which covers any shortfall. I used to work in the insurance industry, i found multiple cases where a car had been stolen or written off , within the first 3 years and due to depreciation, the insurance payout would be far less than the outstanding debt with the lease company (£9000 was the worst i saw). If leasing then gap insurance is something you should heavily consider.

@richardgshirley Ай бұрын

Great video I bought a new car taking up the dealer incentive for HP (£3k on a £27k car). Then within a month or so paid that off and financed it myself at a lower rate. Just check the conditions for an early repay. I run my cars to 150k miles / 7 years then they’re not worth much

@alexcalvert784 Жыл бұрын

Really helpful insight. I bought my 6 month old VW Tiguan 18 months ago (at their most expensive) for £32k. £12k deposit and £20k personal loan (at 3% when base rate was low). As you say, timing can be more important than anything!

@bradparmar4728 Жыл бұрын

You Brits are being robbed by ur Government in buying vehicles.( too many taxes n duties)

@johnguidetti5839 Жыл бұрын

So many better cars out there at 32k than a Tiguan...

@philsmith7398 Жыл бұрын

My preference was for pre-owned Japanese (most reliable) cars in good condition for less than 1k and, probably the most important servicing tip, change the engine oil as per the service schedule. That's it. That allowed me to use my full stocks and shares ISA allowance.

@Pinnednischa.. Жыл бұрын

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@moali7158 Жыл бұрын

You're a very smart guy buying Japanese due to their better reliability levels e.g. Honda and Toyota.

@petersonfamily6223 11 ай бұрын

That is fantastic information and precisely what we were looking for. Our finanical person suggested going with a loan at 4.5% interest rate and invest the money instead. In theroy this should have a high return than the loan interest. It does feel good to pay off a car and not worry about monthly payments but if the money is invested properly and makes more I guess that is the way to go. We will be trying that this time. Car prices are through the roof no matter what you chose to do and we would have waited longer but had a lemon that was costing us thousands every year we kept it! Thanks again.

@toyotahilux2 9 ай бұрын

Always bought a 2 or 3 year old car and kept it till its about 8 years old and done over 100,000 miles, by that age it doesn't matter so much that ive serviced it myself and saved a fortune on garage fees

@BobbyByrne-bh8yf Жыл бұрын

Helpful video. As other have mentioned, the leasing option (at least in Canada) comes with higher insurance costs. Another thing to consider is the environmental impact of constantly trading in for a new car every 3 years. If the majority of people did this, older cars would be scrapped much earlier in their lifespan, and more new cars would need to made to meet demand. There is a pretty hefty carbon footprint attached to that. The order matters in the phrase 'Reduce, Reuse, Recycle".

@electricfeel007 Жыл бұрын

Curious. So a car that is 3 years old /makes a larger carbon footprint than a /brand new car plus them manufacturing the new car. In 10 years will 1 car/ versus manufacturing 3new ones. 1 car 30,000+10,000 repairs maybe/ versus 110,000 if you buy the same car. All guessing prices. Cost of the vehicle will increase in 3 years time.

@TheAnimeist Жыл бұрын

What about the economic and health impact of people having jobs to manufacture said vehicles? You're overthinking this too much, and are buying into the crap that is being fed.

@billm3210 Жыл бұрын

Your environmental analysis makes no sense. Automakers will make as many cars as they can and push them out for economies of scale. Also the stats in North America shows large v8 trucks are the biggest sellers.

@lousialb8962 Жыл бұрын

@@billm3210Automakers pumping out cars (or trucks) has no bearing whatsoever on the validity of the environmental analysis. In fact, if everyone switched to purchasing used vehicles, production of vehicles would, indeed, decrease based on lower demand (ie, there's no point supplying something for which there is no demand). Further, only 10-15% of the world's population lives in North America. So what's the relevance of your point about truck preference there?

@cornishhh 11 ай бұрын

If you keep running old vehicles their costs go to the small businesses who repair them rather than the multinationals who build them. Also, the only thing on a vehicle that creates any significant pollution is its engine. If cars were made more with the incentives of being infinitely repairable they could be fitted with less polluting engines when the present one wears out. This is a fairly common practice in third world countries where few people can afford to scrap cars unless they really are scrap. Then they get used for spares to keep others on the road.

@jacobducksbury6711 Жыл бұрын

This is huge for me Nischa. I’m 23 and I’m a decent paying job. I’m still able to live at home and am saving for my first place to get on the property ladder early. People my age buy cars and get into debt on finance for the badge, to display wealth they simply don’t have. Nothing has really ever been explained to me when it comes to cars, it seems the norm to fork out a large bank loan and pay a huge chunk of monthly income on a more expensive motor. I own a fiesta outright and I plan on keeping it until I’m in my new place but this sort of video is exactly what I need when it comes to what to do, as different people I talk to have different views on leasing/pcp/ buying outright etc… Thank you

@tbayhell2304 Жыл бұрын

I'm 23 as well working in construction management and I'm buying my home this week. Company pays for my new truck, gas, accommodation and gives allowance. It's tough job, but it's worth the financial freedom!

@authortimwickenden Ай бұрын

In my 44 years as a driver I have never bought a new car. I buy (outright) good quality cars second hand and run them as long as possible. As I run the car I save up for the next one. It is far cheaper to do this and the car is yours and as such it is an asset, albeit a depreciating one. Great video and I’m surprised PCP has not been investigated for mis-selling - bonkers scheme.