How to Get the Best Car Deal in 2025: Buy, Finance, or Lease?

Matt | Personal Finance

How to Get the Best Car Deal in 2025: Buy, Finance, or Lease? #moneytips #carbuyingguide #carownership  Confused about whether to buy, finance, or lease a car in 2025? You're not alone! This video breaks down all the key factors you need to know to make the best financial decision when purchasing your next vehicle. From comparing outright buying, financing (hire purchase and PCP), to leasing, I look into the pros and cons of each option, providing clear insights into what's best for your budget and lifestyle.   I also cover the hidden costs, and how to choose the right option based on your financial goals. By the end of this video, you'll have a solid understanding of car purchasing options and how to maximize your money in 2025. Make sure to subscribe for more finance tips and insights!  #carfinance #car #vehicle #personalfinance

Transcript

00:00When making your decision on the best option, there are a number of different financial and

00:04non-financial factors to consider. With leasing or the PCP option, one of the pros is that it

00:09gives you flexibility, you're able to switch or upgrade your car after a few years, and you don't

00:15have the hassle of having to sell your car. And if you're looking to get a more expensive car,

00:20which can have high depreciation values, then it can make more financial sense to lease rather than

00:25buy. And often maintenance issues are covered by the dealer under lease agreements, but check your

00:30contract on this. One of the cons of leasing is that you need to keep your car in perfect condition,

00:36otherwise you get charged when you return it to the dealer. And there are restrictions with these

00:40options as the car is not yours to keep. For example, there can be restrictions on the amount of

00:45mileage that you can do. And if you exceed the threshold, then you have to pay more. With the

00:49finance hire purchase option, some of the pros are that you can own a car with limited upfront costs,

00:55once you've paid off the car, you don't have the stress of the ongoing regular payments and you

01:00have full ownership. So you don't have the restrictions associated with leasing. However,

01:04the con of financing is that interest payments can be high, which can take up a large chunk of your

01:09disposable income each month, making it difficult to save anything on top. You also have maintenance

01:15costs associated with ownership, which tend to increase as the car gets older. The final option,

01:21buying the car outright has the benefits of giving you peace of mind, you own the car fully, and you

01:26don't have the restrictions or the stress of making regular monthly payments after you've purchased it.

01:32This option can work well for people who don't mind driving the same car for five, eight or over 10

01:37years. However, as I've said before, the main con of buying a car outright is needing to pay large amounts

01:44of money upfront and the opportunity cost of using that money to invest. As well as this, cars are in

01:51general a depreciating asset unless you really know your stuff and have something like a rare vintage car.

01:57One way to try to mitigate this is to buy a secondhand car, which is already partway down the depreciation

02:03curve at someone else's expense.

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