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



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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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00:00 – Intro
00:52 – What’s the difference
02:34 – Which is the cheapest
07:27 – Psychological Factors

DISCLAIMERS & DISCLOSURES

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.

This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Nischa is a participant in the Amazon Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Thank you for your support!

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➡ My Free Personal Finance Tracker: https://nischa.me/personal-finance-tracker

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Thank you Nischa

Laughinglikefuck

Also with PCP, you can do what’s called a Voluntary Termination of your contract provided you are 50% complete of payments, not 50% of contract term. Hand the car back with no charges except if exceeded the mileage allowance.

Stefano

How beautiful you are 😮

OmniTraveller

Whatever you do, stick to used cars! Buying a new car is a terrible decision for most buyers.
Btw. I love the way you say "deposit"

_toro

Thanks for this I feel better knowing I did the right thing for me. I bought mine outright 3 years old low mileage & have continued to barely do any miles in 4 years. I have never wanted the stress of worrying about repayments alongside rent & other rising utilities as a freelancer. Please could you however cover how you can claim/ offset cars as possible expense against your own business in another video- that would help me & possibly others. Just an idea. Thank you for sharing your knowledge xxx

Larry Burns

thanks for the info gr8 presentation

Larry Burns

buy a second hand car for cash is the best option

Peter Cunningham

Worst investment any human can make just buy a goat and ride it

Andrew Storm

Wow nearly a million views

Kruppers

Excellent vid.

OO

I’m more confused now. What are pounds???

Michael Diaz

Lease for me- fits my lifestyle. I havnt paid for maintenance in over 10 years. I don’t like modifications and I don’t drive a lot. And I like having the newest tech..

I don’t like how once u finish paying a car off it is now super outdated. Plus it’s depreciating. Never buy a depreciating asset…

glen millen

Fair analysis but PCP is not really aimed at ownership as the final outcome. The idea is to change, upgrade or avoid expensive costs of ownership by keeping an older car.

Dodgey Solenoid

If you were to purchase the car outright, surely you should be able to negotiate, a better discount for cash purchase.

Genevieve Sabourin

Bought outright used…

dunkafa

Or you can do like I do, buy a reliable car 3000$ cash and keep for 8 years. 360K km and still running good, All my cash is going into index fund and bring back 10% at least. How about that ?

Bobby Hussain

Really good video, thank you! I just wanted to get your opinion on fuel type as a factor when purchasing a car, at the moment I see 3 options namely EV, Hydrogen as developed by Toyota and lastly synthetic fuel as being developed by aramco. So, given that EV is winning the race to be the final solution, it isn’t set in stone though so would you advise to buy a normally aspirated car I.e. fossil fuel based, or hybrid? Or indeed electric?

Colin Gregson

Teaching the modern generation to 'Suck Eggs' cause they are so financially thick !!.

Mark Patrick Lindsay

Thanks

Bill Cicardo

Lets discuss this over dinner😅

dave houston

I actually built cars in a Honda plant. Let me tell you a new car is not worth the high price and depreciation. Having said that I am grateful there are enough stupid people that do buy a new car because I'll buy it from them in 5 -7 years time and drive it for 10 to 15 years more. Repairs? No problem i do any repairs myself. Super easy

Ian Waugh

Made enough equity on my PCP to buy my next car outright (second hand and cheaper vehicle), very lucky timing and obviously not normal. Also noticed that after 3 years, the deals available for your next car are normally a lot more expensive. My first car was £99 a month, second was £180, third was £350 on PCP. So unless your income keeps up with inflation and rising cost of finance, you'll eventually run out of road and have to choose a cheaper car. Sad times!

Cevan42

11%??? Yikes!

Nigel Postles

Bought my 6month old ‘ex-demo’ Mercedes CLS outright as it worked out £9k cheaper in the long term. In the past have gone down the HP route as have never believed that Lease/PCP are the answer. This video seems to show that they are the better option (for me).

David Free

Very interesting. I always buy new outright and I keep my cars for ten years plus.

Peter Ivory

I bought a second hand Vectra £1200 in 2017,I still have it……still goes like shit off a shovel, still looks tidy….never had to mortgage future earnings to pay to look like I am successful….I also live in the same house I bought almosrt 30 years ago,I got rid of the mortgage quickly ,making massive over payments,every time my fixed rate came to an end

Central2016

Buy a few years used. New cars are absolute rip offs these days

greg gregorich

what country is useful this video 😷

Thomas Sciurba

Opportunity costs are not a factor when the loan interest rate is 11%. You would be lucky in the best years to have that type of return in the stock market.

Dan Chang

New car brokers are a good place to negotiate large discounts on new cars either outright purchase even PCP finance deals.

From experience discounts between £4-8k are possible and will offset initial depreciation and can in some instances work our cheaper than leasing if you intend on keeping car longer than leasing term.

At end of the day it's very much down to own preferences and financials.

Peter Gianakopoulos

She's beautiful

David

My goodness, you should do voiceovers for EVERYTHING…. I can listen to your accent and voice all day long.
Also, very informative video.

Gregg Chaffin

I could listen to her voice all day long. So soothing bro… sorry that sounds weird but it’s true m.