Long comment, but bear with me here, Some people are saying leasing is bad because it is basically paying for the first couple years of depreciation of a car and not owning it in the end, it is cheaper to just buy a used car. Non-car people should really stop being a cheap and recognize the intrinsic value of changing a new car every two or three years. First off, it reinforces a good image, say if you do business with some wealthy client, they will probably immediately look down on you and doubt your success and capabilities if you show up with a 10 year old Toyota. Secondly, new cars are better equipped with new safety tech and are generally more reliable, and with full factory warranty, you are not likely to have to pay any maintenance costs. Thirdly, for people like me, who would likes cool new cars, driving a new car simply makes me happier. By keeping an old car, one spontaneously foregoes the above. Moreover, leasing a car is likely to be cheaper for many people than financing the car, or even straight up buying it. Primarily, monthly cost for leasing is almost always less than the monthly financing payment, and leasing only asks you to pay for the depreciation amount, not the full car's sticker price. Second off, you get a tax write off as the monthly payment can be claimed as expense easily, if you are in the top tax bracket like me, this effectively cuts off almost 1/3 of that monthly payment. And you pay less vehicle tax, much less. Lastly, this one is mostly against straight up buying a car, money has time value, the more you can delay the payment, the less the payment is relative to you. The risk free rate (the rate at which your investment will grow without nearly any risk at all) now in the us is about 3%, my personal portfolio did about 11% last year. In my case, I’ll make a simple model, let’s say that I used $100 to buy a car in cash 3 years ago, I wouldn’t have any of that $100 right now, but if I leased that car, and I pay $2 a month and have a $10 down payment and put all available money in investment at all time (total payment 2*36+10=82, 82% of the full car's price, way more than in real life, ~65% ish irl), I would actually still have slightly more than $40 at hand after the lease is over if I maintain my annual 11% (0.9% monthly) and balance is calculated monthly, (do remember that interest in real life is calculated daily, and in that I would have even more interest money, but this is a simple model), the car will likely depreciate about 60%~70% in three years. If I bought the car, I will have to sell the car to get that money back, it’s a whole lot of hassle and I’ll probably have to sell it at a lower price to sell it quick, remember money has time value so I need that cash quick. That makes buying the car a loss for me. Some might say, “well I don’t sell the car I don’t see the problem here”, but the car you have worths less than the cash I have, and my cash will only grow in value as I invest, your car on the other hand will depreciate, albeit slowly after 3 years, but depreciates nonetheless. Plus by driving an old car, you lost the intrinsic value of a new car as I mentioned in the beginning.

I was just thinking "I wish I could learn more about leasing" and this video came up on suggested videos. And very useful it was, too.

Please, never stop doing videos like this and your reviews! It's really informative and the production is of the charts. Thank you for what you do!

I had a car once, but I had to sell it because I had to choose between paying my rent or having car insurance, I could only afford one, so I bought a bike, now I get around everywhere with it, its great, although it doesn't have folding rear seats for those trips to ikea.

I lease and pay £156 a month on an Ibiza 1.2T FR it was on a 3 + 23 plan. now the reasons i did it was so my wife had a new, reliable & safe car to drive round in. So that's going to cost me 4k over 2 years, I think that's better than getting an older possible less safe and reliable car or spending more to actually own it

Work your ass off and save. Buy low-km pre-owned cars that are 1-2 years old from reputable dealers, preferably an official dealership with full maintenance history/docs (e.g Mercedes Preowned, BMW Premium Selection, Audi Certified, Porsche Certified). Have enough money to pay outright OR to at least part finance the car - Never fully finance or lease unless you're fully secured in your job long term (which very few people are). Only get the car if it is 50% or less of your annual salary.

When i was in India i was watching you and now i am in UK and still watching you.. Lovely person..

"Trust me...Never buy a depreciating asset. If it drives, flies, floats or f*cks - lease it!"

So if I understand correctly, the example shown at the beginning would suggest that after 3 years you would have paid £9000 on a £30k car? What can be bad about that?

But, but ... my dream car is a 30+ year old Toyota Corolla AE86 Trueno.

Not being able to end the agreement early and still be liable for all outstanding payments is an eye opener! With a recession looming, the advantage of PCP is attractive.

This only applies for second hand purchases, wait at least 3 years for the depreciation curve to begin leveling off (the longer the better but the first 3 years are the greatest, usually half the cars value), depreciation is typically the most expensive facet of car ownership.

Love these informative and educational videos! They really do help me!

leasing sounds good, but i want to own my dream car for at least two decades

Don't know about Great Britain, but in the Netherlands the lease gets registered as a loan and has a great effect on the amount of money you can further loan. Now you can only get a mortgage minus 4 times the value of the car. The factor 4 is some sort of penalty for having a private lease car. Ultimately it comes down to whether you want to drive a new car or buy a house. I'd know what I'd rather have...

Love to see a review on that green vrs

Guess what a lot of ppl didn't realise is buying a car that is over £35k, will lost its value for approximately £10k and above. Also, don't forget if you are good in investing, having £30k cash and invest something will probably earn you back couple of thousands in the following years.

Best way is to buy a used car. Just check it thoroughly,and you'll be fine with a good inexpensive car.

I don’t mind everyone leasing their cars or financing, it means there’s really good used car deals. Eg. Mr and Mrs Smith lease a brand new 430d for 399£ monthly over 3 years + deposit of 4K , that’s almost 6k a year just for a car And 18 k over 3 years. They hand the car back in and I snatch it at auction for 19-18k which I get a loan to cover cost. It’l only have around 30-50k miles at which point il keep it for another 3 years and build mileage to just under 100k (as it’s hard to sell on past that mileage) and sell it for 13k at auction. I’ve just ran a car for 5k over their 18k lol. Il have GAP insurance if it’s written off within my ownership to pay off the loan. Leasing is for people who have property and spare income coming in. Those that lease beyond their means are stupid. Roughly 10% of your earnings should cover the cost of a car any more and my opinion is it’s beyond means. I spend my saved money on property either shared ownership or buy to let and hopefully if I live long enough il retire at 50. I’m only 24 with my 2nd property. Just my 2p worth for those knowledgeable amongst you.

As someone else has asked, is that your new Volvo XC60 that you were going to get as a "Long Term" test, free press car, Mat! You won't need to a Personal Contract Hire! Nice!

I love leasing. All I pay for is fuel and insurance. I have an Ateca Xcellence on a 6 x 24 10k. I pay 257pm with 1400 down and that works fine for me.

Maybe not in the UK but in the USA you can absolutely buy the lease car after and you can turn the car in early... For a fee of course.

Not all people get a car on lease to show off, like me I’ve wanted an Audi A3 for the longest time and even though it’s not my car, when I look at my driveway it motivates me and pushes me to do more limits

Depending on the country, you CAN buy the car you have been leasing after the term of lease ends.

The biggest financial loss in cars is due to early depreciation. Its the depreciation amount (around 50-70% of new value) that is being paid back under leasing. This alone indicates that its a more expensive way to buy a car, and then the car is handed back! The dealer gets to sell the car twice, and the early depreciation is paid for under the leasing arrangement. That's why all manufacturers promote leasing so much. Its a win win for them. I would hate to pay £/$ 300 - 400 a month for a car :-)

-Never buy new. If you want 'new,' buy one with sub 3k miles and save 15-20%. -Never lease. -Don't care about what other people think ie don't buy a Beemer just because you want respect, no-one cares. -Only finance if you're raking it in and the finance interest is lower than your current investments. -Spend money on assets, not depreciating liabilities

when the lease contract ends and you hand the car back do you have pay another initial payment (9mths) or do you choose a new car with the same lease company and just keep paying the monthly payments for the next 35 months ?

In Germany you can buy the car after the leasing ends.But you have to bargain for the price just before the period of leasing expires..

I'd never buy a brand new car anyway. Even a 2 year old car cuts out a lot of the depreciation and as long as it's been well kept, it's new to all intents and purposes. Plus, it means you can afford something much better. Hmm, should I get a new VW Up or a two year old Golf? Decisions, decisions...

Great info. One question. Are you able to use your own private registration during the owning period?

What if you'd like to modify the car? Is it allowed on a lease, finance car? Modifications such as exhaust system, ECU remap, Stage 1,2,3 upgrades etc?

You can buy the car at the end of the agreement. It depends on the dealer, they send them to auction so if you want to buy it they will make even more money in some cases or offer it you for a good deal. VW group mainly allow you to buy the car. Just ask, it's sometimes the dealer companies though such as listers.

Because living within ones means is no longer fashionable lol. Still, this means there's way too many used cars for sale at very cheap prices, so people like me can BUY a good car at a much lower price. :-D

I know of big problems after an accident and the car is badly damaged. The lease company can be very awkward and unhelpful. A worrying, unwanted problem in stressful situation. Much easier if you own the car yourself.

Probably worth doing a seperate video on the difference with PCH and PCP, the option to buy the car for example.

2:33 felt like you've left the car on neutral and forgot to pull the e-brake, wtf, I was worried the car would really start moving

Leasing is also possible on used cars in some countries, on some conditions.

Leasing is my preferred option. I don't care about owning the car 🚙 i just like to have a brand new car 🚙 every 3 years. Additionally i pay extra so the leasing company sorts the car 🚙 out if it breaks down or fails.

That dolly zoom though

You forgot to mention about compulsory 1st service after 1st year of the lease and additional costs at the end of the contract eg. Chippings etc

There a place called Evogo where you don't have to pay a massive deposit. The first payment will be how much ever you pay for the car a month. then when you get the car the contract is only 6 months. So you can get a brand new car every 6 months. Anyways I'm thinking of going for it since I've just passed.

When your lease ends and they offer you a new car .do u still need to pay a big lump upfront?

You can end the agreement early. Request a settlement figure and normally its around 50% of the outstanding balance. Also you often do get the option to purchase the car at the end of the agreement. But normally this is not cost effective and you can often find the same car (Age and mileage) cheaper at a dealer. But why would you want to buy it when a new one would cost less monthly and you would just suffer more depreciation.

Cool video. Like camera work especially dolly effect :)

I’m just loving the music

please change background music as its Free non copyright musical theme used over many Channels. Car Wow is becoming a Brand, must have their own identity.

That was the lousiest information ever. You escaped from all the hard questions such as who decides what's normal wear on the car and what's more economic of buying or leasing. Absolute crap

Great, informative video. Brummy accent keeps slipping out though 😄

Car fleecing, that's another way of putting it.

What is the video effect on 2:33 pls someone write the name of it down

Did you forget the set up fee ?

The only think that deters me is the mileage restrictions as I commute far and drive quite, so I think I'll stick to getting used cars but it does seem nice to have a new car every 3 years

In the UK press there is talk about "Sub-Primes Cars" (Bank of England). It adds to your personal debt. If leased you are tied to the dealer so no chance of moving to another after poor customer service. I suppose if you have a Tesla, Zoe, leaf or the likes then a lease plan could be good for you as the batteries should be included (sorry a pun).

I own a 13 year old car and i recently worked out the difference in cost as to leasing through a work scheme that provides insurance aswell as maintenance the reality of my scenario is that i would be paying an extra 1500 over the three years to have a 17 plate spanker but i still won't go ahead because anything can happen tomorrow let alone three years financially so im just going to play it safe.

So much negativity regarding leases here! I'm on my second leased car. I could have a company car but choose to lease as it gives me more choice and actually works out only slightly dearer compared to the BIK tax I would pay if I had a CC. I agree, it may not be a good idea for someone with low or inconsistent income but for anyone with a regular job (doesn't have to be earning mega money) who enjoys new cars, or like me needs something comfortable and reliable to perform their job, a lease is a great idea. In my driving career I have had everything from a £750 14yr old Mitsubish Colt (owned) to a £32k Audi A4 (current car, leased) depending on what I can afford at the time. I would never buy the car I have now because of the depreciation and the fact I don't have £32k going spare! Leasing puts cars that would be out of most people's financial reach well within and why shouldn't we be able to enjoy whatever we want with our own hard earned cash?

Maybe we should encourage leasing because with the leased cars flooding the market as used, they are bringing down the price so more of us can afford a nice, late model car that has already depreciated and has probably been cared for quite well. Win win. :)

Bit different here in Holland, private leases are all inclusive most of the times so all you'd pay for as the user is petrol. It is also possible to end the contract earlier than the period agreed upon, you sometimes need to pay a fine but its never the full duration of the contract.

I suppose the terms vary a lot, since all leasing I'm familiar with always lets you buy the car afterwards and also always includes "free" maintenance plan. It's basically just car financing with a HUGE final amount (the worth of the whole car after three years). You pay a little bit extra for the worry-free driving.

Paying for a car in the first 3 years is THE most expensive period to own a car, leasing is just paying depreciation. A new BMW 3 series msport 320D with say 14k mileage allowance a year costs around 500 per month plus a deposit so overall around 20k for 3 years ownership. You'll find yourself a 3 year old car with 30k miles on it for 20k or less, a 5 year old with 40K miles for 12k. It's then your car for the next 5 or 6 years and a 9 year old 3 series will still make 5 to 7k! Put the money away in a pot like I do and upgrade every 3 to 4 years. Leasing is just another way for people to buy what they can't be bothered to save up for!

Rs6 had goals

Can't buy the car at the end!? In America, all dealerships present the the residual price of the vehicle on the purchase agreement and you can buy out your lease at the end of your term

You can only afford a new car if you can pay cash in full. I watch Dave Ramsay.

And how many of the commenters have cars on pcp thinking they own them. Deposit, monthly payments and then a balloon payment at the end. This channel reviews new cars , and you have to be out of your mind to go and pay out right or hp for a new or nearly new car . There’s only one way car prices go. Yeah sure save up £15k and get a car then in 3 years what’s it worth... swings and roundabouts. Prefer my cash in the bank and monthly payments for a lease. People that lease DONT want to own the car , that’s whole point.

Are you going ro review of the audi a8

So whats the difference between PCP and PCH? Is there any difference in the monthly price or only the two things stated in the video (being able to end early and purchasing the car)

Do you have to pay the initial payment every time you lease a car, or you do you keep paying the initial payment when the time comes to change the car.

Leasing is for me. I don’t see the point of owning a depreciating asset with maintenance costs like road tax MOT and out of warranty bills.

Dave Ramsey calls it fleecing

i like the green skoda - good for march 17th !!

2:10 matt is so proud of his timing :-)

Very helpful...thanks Mat.

I always thought there was bank loans, dealer provided loans,. PCP and in some cases PHP, and as I have done true Leasing from a leading company. Bar very special and rare PCP deals, Leasing is invariably cheaper than PCP as long as you want to stay with a new vehicle and not pay the end of PCP balloon payment?

Haha at 2:32 it feels as if he's rolling down the hill whilst talking.

Does pch monthly payments have interest bearing?

Mat is now living large with Burberry polos

Work hard. Separate money into different accounts. Be smart. Understand finances.

Think most of the country are on HP mate.Lucky for me mine was paid in cash.

Should you get gap insurance on a lease car?

Is there a company that does leasing and insurance combined? Like Peugeot's version of "just add fuel"

Basically you PAY what the car will lose sat on a forecourt over the 3 years. So they make the full amount after selling it as Used. and you get fucked in the ASS.

Is the green skoda an Octavia VRS, it looks so nice

I get bored of cars quickly, this sounds ideal haha

Leasing is for you if you want to replace your cars every 2-3 years, finance or cash is better if you intend to keep the car for 5 years or longer. Personally I would never lease because it would always feel like the car is not mine, plus the limits on mileage and damage make it too constricting. Totally understand why some people lease though, if you can afford it and you always want a newish car then why not.

What happens if the car is stolen on third party insurance or the car is written off due to an accident?

That 5 from 35 changes it's shape constantly, I'm getting confused

Can you do a video on car subscriptions please?

Hi can I get a car with Business Contract hire without having a full UK license?

Well - you've given (mostly) advantages but there's no disadvantages. Please redo for 2018 with new diesel laws / regulations Thanks Edit-spelling

If you buy it you can sell it in a pinch but to each their own.

very useful tip. thanks

If the car had a mechanical problem does the lease company pay for the problem?

another thing i hate about leasing is the limited mileage

i wanna buy a R36...damn what an awesome car.

Get a good job.

Thanks man🫡

no. 6 could have been explained a bit better. Why do you need a "maintanance package" if you don't own the car?

Please mat tell me how I can get my dream car the Lexus LC500

interesting...

Can I lease a mclaren

Matt, did you say all major car companies offer 3 years warranty sitting in a Mercedes, who offer only 2 years. I thought you are a genius 😀