UK Car Leasing vs PCP (PCH vs PCP)

UK Car Leasing vs PCP (PCH vs PCP) - Real World Examples

Рет қаралды 4,105

Күн бұрын

We look at some real-world examples of Car Leasing vs PCP finance. Is there a financial benefit of PCH vs PCP if you're planning to give the car back after 3 years? Which is the best way for you to get a new car?
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Hopefully, by the end of this video you feel that PCP vs leasing, and car finance explained. We chose 4 random lease deals and compared the best deal on leasing.com vs the manufacturers best deal on a PCP deal and we look at the difference in cost in the initial 3 year term.
PCH means Personal contract hire, PCP means personal contract purchase.
PCH is a fixed period lease (a bit like taking a hire car for say 3 years), whilst the PCP is basically the same but you can buy the car for an agreed amount at the end of the initial phase (usually after the first 3 or 4 years). We look at 4 examples here including a Ford Focus, an Audi A3, a BMW 3 Series, and a Tesla Model 3.
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Пікірлер: 26

@chrishaps6846 3 жыл бұрын

I wonder what happens to the vehicles after they have been returned ?

@DefinitelyNotAGuru 3 жыл бұрын

We’ll wonder no more Chris. They almost all go directly to a big car auction. The big finance companies have special sale days at the likes of BCA and Manheim where everything gets sold off, usually back into the trade.

@imldn8372 3 жыл бұрын

Top man.

@DefinitelyNotAGuru 3 жыл бұрын

Thanks 🙏

@johnroberts9212 3 жыл бұрын

The figures absolutely speak for themselves and I am now a complete convert to the idea of leasing over PCP. The only possible financial benefit to PCP that I can see is that if you are going for another new car then the trade-in value of the old one might (and I stress the word might) be more than the guaranteed minimum value giving you a head start on the deposit needed for the new vehicle. In fact I would go so far as to say that the PCP figures are deliberately calculated to produce this outcome in order to make it easy and attractive to trade in and go again. Personally I would prefer the cheaper lease and save the money myself rather than over paying on a PCP in the hope that I get a trade-in Brucie Bonus at the end of the term.

@DefinitelyNotAGuru 3 жыл бұрын

Your suspicion is exactly the same as mine John. Even when they do come up with a couple of grand as a deposit against the next one you’re still almost always upside down on the deal. It’s all BS. All of those manufacturer PCP deals included between a £1k-3k “deposit contribution” from them on top by the way, so the reality is the genuine deposit is £1k-£3k more than I showed in the video. I didn’t give it any airtime in the video as it’s just smoke and mirrors.

@aleemditta1385 2 жыл бұрын

I take back what I just said u made it make sense u have to re fisnce it so when u sell it at end u will lose more the the lease price

@DefinitelyNotAGuru 2 жыл бұрын

Exactly mate

@y2jacobs222 3 жыл бұрын

Thanks for sharing this. Your vids have been helping me a lot lately as I close in on leasing for the first time! I had a question around deal timing. Would you expect to find good deals at the start of a quarter? I've been quoted a price on a Q2 s-line that was about £30 PM cheaper a few weeks back when I first started looking. So don't know whether to hold out for Q3 or not??

@DefinitelyNotAGuru 3 жыл бұрын

Good to hear David. There are so many things that could possibly influence when the best deals arrive that it makes it hard to pin down, all manufacturers work differently and have their own sales/business plans to work too. All I can tell you is when the price seems right go for it quickly before the deals disappear. You can track price patterns on lease loco by the way so you know if the price you’re seeing is a good one compared to previous weeks/months. Hope that helps.

@y2jacobs222 3 жыл бұрын

@@DefinitelyNotAGuru yep I get what mean, very situational. I'd seen the price tracker on a few sites so know it could be cheaper than what I've been offered. Taking it would just mean I have the car in 4/6 weeks rather than months! Anyway, thanks for taking the time to answer, helps a lot ✊

@DefinitelyNotAGuru 3 жыл бұрын

Pleasure Sir 👍

@hd6705 3 жыл бұрын

I have a question on a previous video and thought I'd comment here. I've been looking at a Corsa that I have just realised was Cat N but is now fully repaired and has MOT valid til 2022 june. Do you think it is too risky for me to further my interest into purchasing the car as it will be my first car

@DefinitelyNotAGuru 3 жыл бұрын

Ok so how much is it? Has it got service history? What was the damage it had?

@augustvfx3436 2 жыл бұрын

What are the downsides to leasing ? As in how stringent are the leasing firms on the wear and tear on the vehicle ?

@DefinitelyNotAGuru 2 жыл бұрын

There is a video with that title on my channel somewhere. Wear and tear is not too bad these days.

@augustvfx3436 2 жыл бұрын

@@DefinitelyNotAGuru Ace. Thanks man.

@DefinitelyNotAGuru 2 жыл бұрын

@@augustvfx3436 no worries, put your feet up tonight, sit back, relax and watch my fat face for a few hours 👍

@oscarheath9580 2 жыл бұрын

What would happen if you didn't do the mileage you thought you were going to do? For example 10k for 3 years but you only did 22k over the 3 years? Thanks

@DefinitelyNotAGuru 2 жыл бұрын

Nothing in short. If you flag it early on in your deal you may be able to reduce the mileage and get a small reduction in your monthly cost but if you just send the car back with fewer miles on it theres no benefit to you.

@aleemditta1385 2 жыл бұрын

Well obvs it’s cheaper a month but I thought we would get Analysis of after you buy the car and sell it and see how much u lose compared to lease

@DefinitelyNotAGuru 2 жыл бұрын

Sounds like a great idea, let us know how it goes 👍

@marshy1950 2 жыл бұрын

Are the figures you quote ex or Inc VAT?

@DefinitelyNotAGuru 2 жыл бұрын

Including VAT

@SamRommer Жыл бұрын

But with PCP, you essentially sell the car back to the dealer when you give it back, so you don’t lose your deposit like you do with leasing.

@DefinitelyNotAGuru Жыл бұрын

Just look at the difference in price in the examples Sam. Are you really going to make that much from the dealer? don't forget you only get something for your car if you buy another if trading with the dealer. Also....how much more hagve you paid over the 3 years in the first place? smoke and mirrors mate.