Video ID: nbsaOjvFdZo
YouTube URL: https://www.youtube.com/watch?v=nbsaOjvFdZo
Added At: 13-06-25 21:16:46
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Sentiment: Neutral
Categories: Finance, Education
Tags: car leasing, finances, money management, personal finance, auto leasing
Summary
["This video is about leasing cars and provides tips and answers to common questions.","The host explains the basics of car leasing, including upfront payments, monthly payments, and annual mileage limits.","He also discusses maintenance costs, insurance, and the importance of shopping around for deals."]
Transcript
hello folks I've put together my Ultimate Guide to Car leasing this should answer absolutely all of your questions and perhaps give you some ideas on how to get the best value for your money when leasing a new car some of these hints and tips you've seen before and some of them are brand new in this video and I'm going to start with this one and it's the most commonly asked question which is why should you lease a new car well Warren Buffett said many years ago you should least depreciate it assets and buy appreciating assets so a house is something that generally goes up in value over time a car is something that generally goes down in value over time and that makes a great deal of sense if we look at the average length of ownership of a fairly new car you're looking at 2 to three years look at the depreciation that you expect to see during that time and then look at the cost of the lease if the lease is going to cost you less than the car's going to depreciate then you're on to a bit of a win in simple terms think of a car lease as a long-term rental of a vehicle like a higher car that you have for 2 or 3 years you have to pay an upfront payment which is sometimes referred to as a deposit and then you'll pay monthly payments for the duration of the period you've got the car there's also an annual mileage limit on a car lease and depending on how high or low you have that set will affect the cost of the lease now the typical car lease you're responsible for insuring the vehicle and for servicing and maintaining it unless you go for a fully maintained deal more on that later what happens to my deposit at the end of the lease um people use the word deposit but actually it's an upfront payment that means you don't get it back it really is just another payment so don't get confused by the language that's being used shop the deal not the car so let's say for example you've decided you want a Ford Focus okay nothing wrong with Focus good car nice drive there you go I want Focus so you shopping around for deals on a focus and you find that a focus is about 300 quid a month and that's quite a low speec one and it's not particularly exciting engine and then you flick around a bit more you might find a lease on a Golf GTI for similar money to that base Focus I have seen people shopping for an Audi A3 before that've got an Audi A6 for 30 quid a month less it's that D at times it really is I cannot stress enough but shop the deal and not the car where did you find all the best deals well the best way to find them really is to go through a comparison site like the one Linked In the video description and pinned as the top comment in this video by using a comparison site you can look at deals from a wide range of Brokers with various different terms drilling down to find that the best deal for you might mean playing around with annual mileages um the amount of your upfront payment even the least term find something that suits you and that works for you and make sure you get the best price can I put my personal plate onto a lease car and cannot take it abroad the answer is yes and yes you just need permission from the lease company and a little bit of documentation which they can help you out with simple as that Jim how did you get such Luscious Hair uh I got alipa can I modify a lease car uh generally no you can't it needs to stay completely stock but you can always ask the question of the leasing company um lots of people don't do things because they feel they can't but they have never asked the question two minutes on the phone we'll give you a shire yes or no answer on most occasions can you part exchange if you lease a car well generally speaking no there's absolutely no part exchange facility um but it's quite simple nowadays because you might want to wait for the day that your car is booked in uh for delivery from the leasing company and at that time perhaps a week in advance put the car up on Carwell or Motorway or one of those similar car buying Services collect bids and get it taken away simple do you have to pay for maintenance on a lease car well yes or no really you can get fully maintained deals but you can also get deals where you're responsible for maintenance on those fully maintained Deals they usually include your servicing and your tires and bits and Bobs like that with the other ones if that's all left to you so you pay for the service in in any tires as you go fully maintained deals can be a really really good way of doing it sometimes they're Dirt Cheap sometimes they're massively expensive so really make sure it makes sense to you look at the cost of service in that vehicle over the three years or two years however long you have it consider with your mileage are you likely to need any tires and make an informed decision based on that if you are interested in car leing you should be subscribed to my channel it's completely free and I produced lots of car leasing content and loads of lease deals videos so get subscribed now it will take you a second and it helps me out if my insurance company writes off my lease car am I fully protected well know quite frankly the leasee company could still come after you for their loss of earnings on your lease deal and of course the insurance company may offer far less than the actual cost of replacing the car uh so you should definitely consider gap Insurance what gap insurance does is makes up any shortfall so if the lease company are asking for £40,000 to settle the cost of the lease and your insurance company are offering to pay out £36,000 the Gap inur would step in and fill that £4,000 Gap meaning you're not left out of pocket now the sponsors of today's video are ala Insurance who are one of the UK's leading providers of gap insurance go to ala. co.uk to find out more and to get yourself an instant quote they do a special kind of gap insurance which is called contract higher gap insurance and that is for this personal car lease or a personal contract hire as it's correctly known um just go online get a quote it will take you less than 30 seconds uh and use the code JY 10 to save yourself 10% off the price of any of their products on the site you may also wish to consider things like scratch and Dain cover alloy wheel and tire cover they're all available on the Ala website and thanks to Ala for sponsoring this video who pays the vehicle excise duty or Road tax as lots of people still call it uh well the leasing company does however if there's a change in the road tax or vehicle excise duty during your lease period almost all lease contracts now have it written in that you have to pay it and more recently there seem to be some now that are saying that even if it's a change that we know about so if the government's already announced that for example in April um vehicle exos duty is going to change it'll be written into your contract that you're liable for it at the time it does so be very careful with that my old lease deals coming to an end how early do I need to start looking at the next one well that depends really if you're looking at something that's advertised as in stock that doesn't always mean they've literally physically got the car ready to go so usually there's a couple of week lead time on those and it can be as much as 6 weeks because it may be that the car's currently on a ship or has just arrived at Port it needs to be collected and prepared Etc if you're looking to factory order that can differ wildly between different manufacturers some will have a short lead time maybe 10 12 weeks where others could be six months or even more so really do a little bit of research make a few calls beforehand and see realistically what that timeline should be if there is a little overlap period generally speaking your existing lease company assuming you're coming from a lease into a lease generally speaking your existing lease company will give you a small extension but remember if you get an extension you might have toot the car if it gets over 3 years old for example so just something to bear in mind my parents taught me to save up for a car buy it and keep it on the road without any debt well so did mine and I think they were wrong I've lost loads of money on used cars in the past um not just the difference between the purchase price and the sale price but simply the cost of keeping them on the road and the massive Vari you've got the repairs that could come along at any time and literally make the car worthless or mean that you've got to play a lots of money into it I've had to get into debt before to be able to keep my car on the road that I saved up for and purchase the other thing is if you give 100% of your money away on day one to pay for a car uh you don't have anything in the bank acre in interest you're not able to invest that anywhere you can't play the stock market with it you can't put it in an ier you can't do anything like that if that big pot of money starts off on day one and just a little bit goes out of it each month you're still earning money on it that's something called an opportunity cost and it's something that very few people factor in when they look at the cost of leasing a car and I financial advisor should you listen to financial advice from me no I'm just a normal individual like you I used to work in the financial services industry I'm fairly canny with this kind of things but I'm not a financial advisor so don't take Financial advice from me or anything I say as Financial advice because it's not it's my opinion I've been leasing cars for years both for a business I worked for for a long time and for myself and my wife personally um if you can think of a question I've probably already asked it at some point or I've found out the answer hence I make these videos and myself lots of my family and friends have all ended up in nicer cars than we would normally have and they've cost us less because we've looked at leasing them leasing sounds great but I don't want a new car can I lease a used car well yes there are some companies that offer Used Car leasing but I think it's a bit of a waste of time uh certainly at the time of recording this I've never seen a used car lease price that seems to make sense especially when you consider that one of the great advantages of leasing a new car is that you have manufacturers warranty from day one and take the manufacturer's warranty out of it and you've got something that could cost you money and give you Bill SK s that you weren't expecting I just don't think it's a great shout if I'm being completely honest but yes there are companies out there that will least you a used car often for the same price as a brand new one or sometimes even a bit more so if you want to look into that be my guest I do PCP on my cars and it's much better than leasing okay so let me challenge that right from the off better for who better for you or for the car dealership because that's the really important question here PCP is a person contract purchase that means you pay an upfront payment and then monthly payment and at the end of the deal if you want to keep the car there's an agreed s value for the car and you can buy it um the difference with a PCH a personal contract higher or a car lease is that there's no optional payment at the end now what lots of dealerships will do and lots of car finance providers will do is give you quite a large deposit or upfront payment to make the monthly payments look small and then the balloon payment at the end for you to keep to buy the car um is huge and what a lot of people don't realize is that with a PCP you're generally financing the whole amount for the car but you're only getting finan on a tiny amount because you paid enough from payment you've got a big payment in the end if you want to keep it so you're only getting Finance for this bit but you're paying interest on all of it so that's the reason why lower monthly payments are sometimes a bit of a red herring my suggestion to you is to always combine the monthly payments and The Upfront amount add it all together and see which one gives you the best number now during the pandemic you know there were a few people that were able to make money from their PCP car because it was a crazy time hopefully we'll never see the likes of it again um but cars went up in value and that just doesn't happen I don't think it's happened before and it hasn't happened since apart from really rare special cars uh so some people made money by having a PCP but in my non-expert opinion PCP is a wonderful thing for car dealerships and finance companies and not a very good thing for consumers my uncle's friends cousins Dad yeah leased a car 20 years ago and they charged him a lot of money when it went back well Spain used to use petas um Corn Flakes used to cost a pound a box times changed it folks this is 2025 there are Protections in place there's a fair wear and tear guideline and when a car does go back with damage the charges now and usually nowhere near as scary as they used to be I recently had a personal car at least through VW Financial Services via a broker that I found on a comparison site and when the car went back they actually sent me scale of all the charges for any damage if there were damage on the car now our car did have some damage and I was quoted locally over £700 to get that put right by a smart repairer and even more than that by a local body shop now VW Financial Services charged me 250 quid as an example one alloy wheel was damaged I was getting quotes all around my local area for between 70 and 85 to get that wheel refurbished VW financial services at the time charg me 60 quid for it not bad and don't forget you've got that bvla guideline to look at before the inspection date uh so you can see exactly what's expected of the car exactly what they consider to be fair wear and tear and what they consider to be damage outside of that fairware and tear tag uh so you've got plenty of time to get these things sorted there's no need in this day and age for anyone to feel like they've been ripped off by a leasing company this whole side of the business is very different in 2025 to even 2005 can I buy the car at the end of my lease well the answer to that is sometimes usually yes uh you always have to request a a price from the lease company you can generally do that within the last three months of your car lease term and they'll give you a price at which you can buy the car it's not often a great price and I don't think it's a good way to buy a car so if you want to buy a car um I would strongly suggest you run all the numbers before you come up with that decision de ision because I don't think it makes great financial sense to buy a brand new car makes much more sense in my opinion to lease a brand new car at least 90% of the time um so before you do that make sure you do all your sums and look at all the other options available to you but yes you can usually buy the car at the end of the lease if you choose to is leasing worth it that all depends on you and your circumstances and the deal that you find if you go and sign up for an awful lease deal then no probably it's not going to be worth it and it's not going to give you value against some other options but there are some Kraken lease deals around at pretty much all times and if you shop wisely you can do really really well with it do I have to have a good credit score to Lisa car well pretty much yes the very best lease deals goes to the people with the best credit scores um if you watch my videos where I show you all the best lease deals that are available they won't be available to you if you've got really poor credit score and credit history and you know sensible person may actually look at improving their credit score and credit history um before entering into new Finance agreements how do I ensure a lease car well it's quite simple um when you go through and get your quote you have to note the registered owner and keeper as a leasing company not as yourself I've leased this car but I don't want it anymore my circumstances have changed can I get out of the deal now generally speaking you can often get out of a lease deal but it will cost you a few quid sometimes you might need to be say even halfway into the deal's lifespan um but usually you're going to get charged at least half of the remaining monthly payments to get rid of it so my advice to anyone signing up for relase is make sure you're making a decision that you're going to stick to and also keep a little bit of a day fund just in case the worst happens and your circumstances change can I get optional extras and can I choose the paint color on my car well generally yes you can do both the exception being cars that are currently in stock because if there's a white car in stock that car will remain white even if you desire for that car to be red uh so keep that in mind um but if you're Factory ordering a car you can spe anything you want as you would with any other new car but be careful with this because optional extras are basically worthless when it comes to the trade price of a car so because of that what the lease company does is splits the cost of those options over your lease period so let's say you spend £35,000 on optional extras on the car that you order and you're on a three-year lease basically your lease is going to cost you about 100 quid a month more because of those optional extras because 100% of the cost of them you're going to pay in that leasing period now if you find a car that's bul standard Factory spec even if it's a topof the range car um and you don't put any optional extras on it that's where I feel you're always going to get the most value folks I hope you found this video useful as I said some of it's old some of it's new I just wanted to get as much across in one video as possible so everyone's got one point of reference that I can Point them to uh with all their questions because lots of these things come up time and time again and they're all in videos but all over the place and not particularly easy to find so this has been my Ultimate Car leasing guide for 2025 I hope you found it useful Please Subscribe if you haven't already done so I'll see you soon huge thanks to all my channel members for your continued support I really do appreciate it