How does Car Leasing work? - FAQs, PCP vs Lease Examples and Tips

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UK Car Leasing Explained in Full with FAQ's
- LeaseLoco Link : leaselo.co/notaguru-car-leasing
Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.
Car Leasing Explained UK. Everything you need to know about leasing a car in the UK. How Does Car Leasing Work? This video is for anyone currently thinking about leasing a new car in the UK and hopefully gives you some great tips on getting a cheap car lease.
In this video, I explain in detail how car leasing works and also recommend some of the best websites I used to find the cheapest car leasing deals for personal contract hire (PCH). Car leasing is a type of car finance, which, in my opinion, is often a great way of driving a brand new car for the cost of a used car.
Leasing a car is very similar to hiring a car, but for a longer period of time. Leased cars are brand new cars, however, you do not ever own the car and nor will you usually get the opportunity to own it. At the end of the agreement, you simply hand the car back. 2, 3 and 4-year car leases are the most common.
We also look at owning vs leasing a car and at Car Leasing vs PCP with a real-life example on a Hyundai Tucson where we see savings of over £10000 in the first 3 years.
Lease deals usually look something like this: -
• Initial Deposit - This is payable upfront and is non-refundable along with any broker fee (if applicable).
• Lease Term - This is the length of the lease.
• Annual Mileage - This is the number of miles you are limited to on an annual basis, anything over this may be chargeable (as an excess mileage fee)
• Maintained or Non-Maintained - This determines whether you are due to pay for servicing or tires. Maintained deals are more expensive than non-maintained and do not always represent good value.
One thing I didn't mention in the video was Gap Insurance. Gap insurance may be worth the cost if you're concerned about not getting the original value of your car back if it's written off by your insurer. It basically covers the difference between any write off the amount you get from your insurance company, and the amount outstanding on any car finance agreement - in this case, the amount you would owe the lease company if their car was written off.
My favourite car leasing deal sourcing site is: LeaseLoco - leaselo.co/notaguru-personal-...
The BVLRA Fair Wear & Tear guide can be found online at : -www.fleetalliance.co.uk/fair-...
00:00 Intro
00:46 Lease a car or Buy a car
01:31 PCP vs Lease (PCH)
02:39 What is car leasing?
03:14 Am I in the trade?
03:42 Shop the deal, not the car
05:08 Private plate on a lease car?
05:19 Do I pay road tax on a leased car?
05:37 Who pays for servicing?
06:15 What about lease return damage?
07:25 Should I just buy a cheap car instead?
07:57 Can you only lease a new car?
08:15 Can you add optional extras?
08:39 What happens at the end of the lease?
09:45 Where do you find the best lease deals?
11:03 Should I lease my next car?
11:19 Why don't more people lease a car?
12:33 PCP vs Lease Real Example
15:44 What are the downsides of leasing?
18:16 Please Like & Sub & Follow Me On Socials :)
-- Thanks for watching!
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This channel tries to deliver honest advice for real people. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.
All music used in this video is written, recorded, and produced by me.
Please like and subscribe! ;)

Пікірлер: 70

@DefinitelyNotAGuru 2 жыл бұрын

- *LeaseLoco Link : **leaselo.co/notaguru-personal-leasing-guides*

@matteo1907atalanta 2 жыл бұрын

My goodness. Can you find someone else on the web explaining all of this in such a simple manner? You’re a legend mate 👍🏻

@DefinitelyNotAGuru 2 жыл бұрын

Thank you brother 👍🙏

@davidwade4594 Ай бұрын

Nice clear, concise information, well done Jim

@DefinitelyNotAGuru Ай бұрын

Thank you

@jockster5525 2 жыл бұрын

Excellent explanation. Thanks for your efforts and sharing your experience with us.

@DefinitelyNotAGuru 2 жыл бұрын

Thanks Jock, glad you liked it 👍

@desmondseeto4293 2 жыл бұрын

Another great video Jim. Your videos are the best and most honest at making it easy to wade through all the deliberately confusing material and T&C’s of acquiring a car.

@DefinitelyNotAGuru 2 жыл бұрын

That’s very kind Desmond, thank you Sir 🙏👍

@h.bsfaithfulservant4136 2 жыл бұрын

Great advice as ever Jim 👍👍

@DefinitelyNotAGuru 2 жыл бұрын

Thank You!!!!! 👍🤓

@brianiswrong 2 жыл бұрын

Absolutely nailed it Jim. Shop by price not make / model, for an eye opening look at how some cars depreciate way more than others, this is how for example a £35'000 audi might be the same cost to lease as a £28'000 ford.

@DefinitelyNotAGuru 2 жыл бұрын

Cheers Bryan

@PaulBrownclk-me 2 жыл бұрын

Great advice 👍

@DefinitelyNotAGuru 2 жыл бұрын

Cheers Paul

@sayed978 2 жыл бұрын

Great video 👍

@DefinitelyNotAGuru 2 жыл бұрын

Thanks 👍

@rupdog6464 2 жыл бұрын

Great video

@DefinitelyNotAGuru 2 жыл бұрын

Thanks Rup 👍

@charliemorris 2 жыл бұрын

I found the new v used, lease v pcp demonstration really helpful. Never seen anyone show that before.

@DefinitelyNotAGuru 2 жыл бұрын

Thanks Charlie, there are a few more of those floating around on my channel if you look hard.

@h.google 2 жыл бұрын

Excellent explanation (providing it's all correct) it has cleared up a few things I wanted to know. Thanks 👍🏼

@DefinitelyNotAGuru 2 жыл бұрын

Thanks (I think) 😂

@h.google 2 жыл бұрын

@@DefinitelyNotAGuru Oh Yes, definitely a thumbs up !! I am hoping and trusting what you've said is correct, because I wouldn't know. 😇

@DefinitelyNotAGuru 2 жыл бұрын

@@h.google 😁 what makes you think I do?? 😂😂😂 seriously though, thanks mate 👍

@h.google 2 жыл бұрын

@@DefinitelyNotAGuru Ha Ha 👍🏼

@watchmrcontent 2 жыл бұрын

Great explanation! I've leased cars for 15 years, but my sister gets a "great deal" from her friendly BMW dealer on PCPs - and always pays far more than me....

@DefinitelyNotAGuru 2 жыл бұрын

As do several of my mates 😂😂😂

@TheLegend-nx3mm 2 жыл бұрын

Hi Jim , you have explained the difference perfectly well. I'm still looking for a deal. My gut tells me the deals are going to get cheaper and better in the next month or so ! Due to what's going on in the world energy crisis etc sadly. I'm looking for a milage of 10/12k and your right the deal is key here. Kind regards Danny. Uk

@DefinitelyNotAGuru 2 жыл бұрын

Thanks Danny. Keep watching buddy 👍

@BOSKILLZX 2 жыл бұрын

Great video. One consideration to be had is the positivity equity on a PCP deal that you usually have towards the end of a deal. Also, the PCP vs Lease comparison has a typo, you put £563pm when the quote was £503pm. Bare in mind that was based on a 9.9% Apr which you can quite easily haggle down to a more respectable 6.9%, this brings the two deals far closer together in which case many will pay for the added flexibility a PCP gives 😄

@DefinitelyNotAGuru 2 жыл бұрын

Thanks, I think I did mention that you may be able to get a better deal but I used the first lease I could find and the first PCP (from the manufacturer's website). Whilst positive equity can happen (especially recently) it's often negligible or simply used by car dealers to tie you into another car. Remember that positive equity is pretty much worthless unless you can afford the balloon payment or unless you go straight into another PCP (at which point I feel that your negotiating power is reduced and very open to "smoke and mirrors" sales techniques) I'm not trying to sell Leasing to anyone, by the way, just explaining my take on it and why it's worked well for me over the years and have seen many friends paying well over the odds by basically just leasing via a PCP. As I said though, I'm happy for anyone to finance their car however they see fit. Thanks for watching and commenting mate. 👍

@KFORDYCE73 2 жыл бұрын

I haven’t checked the other comments but something I feel should be mentioned. We lease one of our vehicles and it used to deliver around London. The problem we found was if they received a parking or driving violation the lease company would just pay the penalty and bill us. We have had occasions since in our own vehicles where we have appealed and got the penalty quashed. Great videos though. 🙏👍

@DefinitelyNotAGuru 2 жыл бұрын

Hi Keith, that is sometimes the case but not always as different finance companies handle it different ways. On our old business fleet one provider did that whilst another used to send you the fine along with a £35 admin fee and tell you to sort it yourself.

@P9uys 2 жыл бұрын

This is a Great Piece Jim, very simple to understand and no jargon. Slightly straying into advise and a questionable introducer (which could be overcome it’s all in the words used). What do I know? …lol (have sent you a LinkedIn connect 👍🏼)

@DefinitelyNotAGuru 2 жыл бұрын

👍👍I'm happy with it to be honest

@stuartkennedy4202 2 жыл бұрын

Of coarse you are correct but people watching this video may now think that the have to stay with the dealer who done their PCP and it wasn’t made clear they can trade in their car anywhere and buy another car however they like not necessarily sticking to a PCP type of deal. Leasing companies in Suomi cases are as bad as dealers in looking to make the most profit and customers should always look out for additional fees and over priced maintenance. I like lease deals but everyone should approach it the same was as any car finance deal, carefully. Great channel, great advice.

@DefinitelyNotAGuru 2 жыл бұрын

Totally agree that people should approach any kind of finance with caution and know exactly what you’re getting themselves in to, and should fully understand how to get out of any deal should they want or need to 👍

@VeeJaneM 2 жыл бұрын

Great video. I have been looking at leasing. Can you do a video on which companies are good to lease from? Customer service is excellent, ones that will not rip you off.

@DefinitelyNotAGuru 2 жыл бұрын

I promote lease loco and I know the vet the companies that advertise on their platform. I used Arval for many years on business fleet, they were very good.

@tomjowitt8554 2 жыл бұрын

Thanks for the explanation. Great stuff. It is not clear what happens to your deposit though. Does it count towards a purchase of the vehicle at end of lease? Or towards next vehicle? Or is it refunded if you opt not to continue leasing?

@DefinitelyNotAGuru 2 жыл бұрын

Hi Tom , it's just a first payment - you don't get it back! A typical lease of say 3 months upfront followed by 35 monthly payments is essentially just 38 payments. Deposit is nothing more than an upfront lump payment. Hope that helps.

@mikecollings2808 2 жыл бұрын

In reality how many of us actually stop paying for a car 1 way or another anyway, i.e. soon as the loan or finance is paid we're usually ready to start all over again with a new car, think leasing is for me next time, never owned a new car before, this could be my chance to

@DefinitelyNotAGuru 2 жыл бұрын

That's the reality for a lot of people Mike.

@mbboberos1852 2 жыл бұрын

Would be nice to see a videos where u return damage car to a lease company and see the bill how much u have to pay for repairs.That's the main reason what scares me from leasing.Don't wanna go shopping and come back to a dent size of a fist or scratch all over the car and then scrach my head and worry how much they gona charge me for it and it wasn't my fault.And like you said when u take something on finance you never sure if you gona be able to pay it off anyway cause your personal situation can change from day to day.Great video.

@DefinitelyNotAGuru 2 жыл бұрын

There is a video on my channel about return costs with VW now, very reasonable indeed nowadays - I also did a video on what "Fair Wear and Tear" is classed as and there is a link to the fair wear and tear guide in the video description if you have a look. Thanks for watching.

@waynem2895 7 ай бұрын

Hi. How does PCP compate to leading on the second deal?

@DefinitelyNotAGuru 7 ай бұрын

Not sure what you mean

@x360Vidzx 2 жыл бұрын

Great video Jim! I’ve been looking at leaseloco as I’ve seen you reccoeknd the site a lot, but the monthly price seems to change from the initial number to when you scroll down to the dealers. Is the extra fee from the leasing company a monthly fee ? Thanks

@DefinitelyNotAGuru 2 жыл бұрын

Thanks Tom, the only fee on top of what you see on the headline numbers is the broker's arrangement fee, not all of them have one and those that do have one vary a lot.

@x360Vidzx 2 жыл бұрын

@@DefinitelyNotAGuru Thanks!

@DefinitelyNotAGuru 2 жыл бұрын

@@x360Vidzx don’t get monthly fee confused with average cost by the way. The amount you actually pay is exactly what you see in the headline number, you just pay the broker fee separately and it’s a one off.

@brianiswrong 2 жыл бұрын

Did the maths on jims " car" as if you borrowed £23900 from hsbc as a car loan over 36 months. 36 repayments of £732.54p @6.7% Apr Total to repay £26,371.44p Now minus what you think the 6 year old car is worth (£13'000 on a very good day) You have spent £1,100 deposit + 26,374.44p repayments + £660 rfl - you sold the car for £13000. You went to the bank so as not to get ripped off by car dealers,and the car cost you £15,134,44p to drive a 3 year old car until it was 6 years old. Makes you see leasing in a slightly better light doesn't it.😳

@DefinitelyNotAGuru 2 жыл бұрын

👍👍👍

@rupdog6464 2 жыл бұрын

Do you think PCP monthly payments will come down this year ? Keep looking at Audi etron and tesla model y to come close to the £400 mark.

@DefinitelyNotAGuru 2 жыл бұрын

I don't think you'll see either of those cars at £400 per month to be honest mate (Unless you stick about a 25% deposit down).

@rupdog6464 2 жыл бұрын

@@DefinitelyNotAGuru why do you think that?

@DefinitelyNotAGuru 2 жыл бұрын

@@rupdog6464 Screen price has increased, demand has increased, interest rates are going up, and everything is getting more expensive.

@TheLegend-nx3mm 2 жыл бұрын

Hi Jim, just a question....the up front payment for example let's say £2000.00 and the term was 3 years? Is the £2000.00 deducted from the total term ? Or is the £2000.00 plus the years of payments ? Hope that makes sense ? Kind regards Danny

@DefinitelyNotAGuru 2 жыл бұрын

Hi Danny, it's on top of the monthly payments, just think of it as a one off initial payment that you will never see again.

@TheLegend-nx3mm 2 жыл бұрын

@@DefinitelyNotAGuru Hi Jim, understand that much appreciated 👍 kind regards Danny

@DefinitelyNotAGuru 2 жыл бұрын

@@TheLegend-nx3mm pleasure mate

@mooktakim 2 жыл бұрын

Should you get gap insurance if you're leasing?

@DefinitelyNotAGuru 2 жыл бұрын

It’s well worth considering

@mooktakim 2 жыл бұрын

@@DefinitelyNotAGuru would be great to see a video of all the other things that would be worth considering. Also for business leasing.

@DefinitelyNotAGuru 2 жыл бұрын

@@mooktakim I already did one on Gap. Business leasing goes too much into financial advice and VAT etc so is best left to your accountant. The actually leasing bit is no different really, just tax implications.

@granthorner Жыл бұрын

Great video as always! A quick question when returning the vehicle do you need to send off a V5 document, this wasn’t explained to me and I’m giving my car back in 2 weeks. I’m assuming I don’t have to as I’m not the legal owner of the vehicle but great to get your take? TIA

@DefinitelyNotAGuru Жыл бұрын

Thanks Grant. If you're leasing the car you shouldn't really have the V5, the lease company should!

@granthorner Жыл бұрын

@@DefinitelyNotAGuru perfect that’s what I thought would be the case, their questionnaire they emailed me through me about returning the car and making sure the V5 doc should be sent prior to pick and inspection. Thanks for clearing that up, great channel by the way… I could have done with finding your channel 3 years ago would have cleared up a lot of questions I had 👍🏼

@DefinitelyNotAGuru Жыл бұрын

@@granthorner thanks buddy, keep watching 👀