Car leasing (Personal Contract Hire PCH) - what you need to know | Top 10s
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Car leasing (Personal Contract Hire PCH) – what you need to know | Top 10s

Leasing – also known as Personal Contract Hire, or PCH – is the ideal way for some drivers to get their hands on a brand new car. To help you understand the ins-and-outs of the process, and how it could work for you, I talk through the top 10 things you need to know about PCH.

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Dan Bruno
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Dan Bruno
23 days ago

I can never understand why you would ever lease or have a car on finance lol

I'm happy with my £1000 VW Passat TDI hasnt skipped a beat for the last 6 years plus I don't have monthly payments like you USA thinking rental/credit millenials.

Ryan Reid
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Ryan Reid
23 days ago

Buying or leasing is always a gamble .you really have to go through these lease agreements with a fine tooth combe.the garages win every time .they love it when a young person walks in and gets their new fiesta or fiat 500 on pcp and the commission gets the better of the sales men. Try buying a car with cash and there not interested. The garages obviously see more profit leasing these cars out. Cash is king buy a car you can afford and you wont have any problems

Lava Yuki
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Lava Yuki
23 days ago

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

Les Wall
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Les Wall
23 days ago

Did you forget the set up fee ?

ArnoldsK
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ArnoldsK
23 days ago

That dolly zoom though

TAN
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TAN
23 days ago

I'm looking at this because it seems cheaper than buyin a car and coughing up the maintenance cost

ElectrossHD
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ElectrossHD
23 days ago

I KILLED U U SUCK AT THE GAME QUIT U PIECVE OF SHIT

hafizuddin mohd lowhim
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hafizuddin mohd lowhim
23 days ago

Good review!

David
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David
23 days ago

In Germany, you can also lease used cars.

Perry Matt
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Perry Matt
23 days ago

Can you do a video on car subscriptions please?

Speed Freak
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Speed Freak
23 days ago

I'll stop you right there Matt. 0:30 leasing is available for pre-owned vehicles.

Dinky Me
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Dinky Me
23 days ago

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

Gittin Funky
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Gittin Funky
23 days ago

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 ?

Eddy Knows Best
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Eddy Knows Best
23 days ago

Borrow money from bank to buy the car with. That's the best repayment plan you can get. Best of both worlds simple. But I agree with the outlook that your car shouldn't cost you over 10% of your monthly income. Also the bank will love you offering a better rate next time. As you have proved that you can manage debt and risk like a boss. Financial literacy at its finest. Just don't slip up

Filippo Mazza
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Filippo Mazza
23 days ago

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

latuman
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latuman
23 days ago

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.

A-Team Media
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A-Team Media
23 days ago

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

cosmicryda G
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cosmicryda G
23 days ago

People say don't be materialistic but I'm very spiritual. To me, a car is everything, its my spaceship I love my car more than anything it makes me so happy sometimes i just the house just to sit in it and chill, read, nap, meditate, shag, whatever I just love alone time in my comfortable luxurious spaceship

Humza Atcha
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Humza Atcha
23 days ago

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

Alex Sosna
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Alex Sosna
23 days ago

i think the only way I’d drive a BMW is by lease. A car with that much electronics isn’t worth it after 5 years old

zed b29
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zed b29
23 days ago

2.31 why is he sat up there

Nathan James
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Nathan James
23 days ago

I am all for leasing now almost at the end of a pcp and basically going to at best be about £200 in equality at the end I could have leased a better car for the same amount of money so why bother with a pcp.

Raja Yar
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Raja Yar
23 days ago

i work for a leasing company, no one and i mean no one including the owner of the company leases. i ask them all why because we lease out to people everyday. they say they dont want a monthly bill. i know there is more to the story then just that. i simply dont lease because my 99 camry does the same job of taking me from point a to point b. i could careless about the features. comes down to if you can afford it go for it. id rather not pay for something till the end of time just like the new phone lease deals that are out right now, not to mentin apple getting caught for slowing down their old phones. its all part of a plan to make money. you cant outsmart the system.

Humza Atcha
Guest
Humza Atcha
23 days ago

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

The_London Dude
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The_London Dude
23 days ago

Good vid. Thanks!

Jazzy
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Jazzy
23 days ago

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

John Carden
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John Carden
23 days ago

I have leased my last 3 cars. The lease costs have been less than the depreciation plus the car is under warranty. No tyres are needed over 2 years (20,000 miles) and the only service is the 12,500 mile service which is basically a change of all the liquids (transmission, brakes, engine) and various checks at circa £150. Plus it is a new clean car which is efficient and has all the modern extras such as satnav, Bluetooth, phone integration, auto lights, wipers, controls on the steering wheel, auto dimming mirror etc. My other tip would be do the lease and insurance through a broker. When manufacturers have excess stock of a model at any particular time they will give them metallic paint and extras and lease them. The monthly payments go direct to the manufacturer's own leasing arm. I use a spreadsheet to compare offers (3+23 or 6+23 etc.) To calculate what I am paying over the full 24 month term. It's the cheapest and easiest way of having a reliable car under warranty with no surprise additional costs.

Mpungi Florian
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Mpungi Florian
23 days ago

I will never lease a car that's just another headache controlling State of Mind

H X
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H X
23 days ago

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.

Matthew Deverill
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Matthew Deverill
23 days ago

I get bored of cars quickly, this sounds ideal haha

Raheem _._
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Raheem _._
23 days ago

Can somebody lease the car for you?

abdul sijad
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abdul sijad
23 days ago

best to buy a £500 japanese car …u will look and feel like bit of a plonker at the traffic lights in your little car…..but at least u own it….and dont worry about feeling like a plonker thats cus u are one

HappyEmigrant
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HappyEmigrant
23 days ago

Car leasing is good if you want a Lambo or Ferrari cars that you will never be able to buy them. But still not being yours is killing thought

willyumification
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willyumification
23 days ago

Fundamentally this is false info, some finance houses will offer leases on used cars up to a year old but a new one would generally work out cheaper. Advantages of the lease is you don’t own it and have a fixed cost knowing your budget. But if you are involved in and accident is very hard to get out of a lease especially in a total loss situation I would always recommend taking a assets protection insurance just in case! And you can terminate a lease early but at a cost in most situations! Do not listen to this garbage fluff go and speak to highly qualified business managers at the dealership, they have to talk you through it and give you the full ins and outs! One last thing a lease is effected by VaT so if the government decides to increase VaT you will end up with that bill as every payment is plus VaT currently 20% but remember when it was less it may increase any time in the budget for the year.

TheWisherable
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TheWisherable
23 days ago

in my country buying a new car is way cheaper than leasing

Rumandcoke
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Rumandcoke
23 days ago

If you can’t afford to buy a car with cash you can’t afford the car. Simple

Hannes Olsson
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Hannes Olsson
23 days ago

The UK car market is crazy! Insurance is ridiculous, used car market is wierd, regulations are stupid, model spec names like "SE" are still a thing, etc. Why didn't all this die off in the 90's like in the rest of Europe? And don't blame the limited market, hardly any cars sold in Sweden are exported elsewere, despite correct-hand steering!

Punit Sedani
Guest
Punit Sedani
23 days ago

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

Thanks

Edit-spelling

SalesDriven
Guest
SalesDriven
23 days ago

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?

Lukas Hermans
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Lukas Hermans
23 days ago

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James Huffmar
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James Huffmar
23 days ago

let's say you lease a 28,000 car for 3 years then send it back.
The car also lost value so what will the leasing company do with the car now?

KL M
Guest
KL M
23 days ago

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

D J
Guest
D J
23 days ago

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.

D J
Guest
D J
23 days ago

If it appreciates buy it, if it depreciates lease it.

Joe Hew
Guest
Joe Hew
23 days ago

What the hell why doesn’t everyone lease their cars

Abdul Salam
Guest
Abdul Salam
23 days ago

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.

The gaming Ninja
Guest
The gaming Ninja
23 days ago

So is pch better than pcp

Alexandra Daddario

Alexandra Daddario

Christina Aguilera