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

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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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33 comments
@falconvelocity

£810 a month??? holy crap!!!!
That's an insane amount for a car. I'd never pay that now. But then I'm not rich and only at the start of my building wealth journey 🤣🤣🤣

@alecmclean1070

Great info but in the model where you buy the car outright, you then progress to your next car with £16k in your hand bringing the price down to monthly levels below the other options and you still get to own the car. This situation runs into all future car buying situations.

@julesprice1

Clearly explained and logical, super helpful thanks Nischa

@UKGeezer

if it's an EV, I would lease as batteries have a limited life and also the tech is constantly changing, so I would want a new car every 4 years or so.
If i was looking to finance, I would shop around for loans as it would be likely I could get a much better finance deal somewhere else.
If I was buying, I would look at used cars a year or two old on the dealership's website where they're usually much cheaper than the showroom prices. They can usually be delivered to a local showroom to be test driven, with no obligation to purchase. I've done this before and it worked out much cheaper than buying a car at the showroom.

@skedtm

Surely a lease or pcp is better than buying a new car… you only pay half the value then swap for a new one. Also has free servicing and other bonuses

@jiml9062

How about a bank loan at 6.5%?