FINANCING (PCP) VS LEASING A CAR - WHICH IS CHEAPER?

EV Channels Review

This video thoroughly dissects the financial implications of acquiring an electric vehicle, comparing Personal Contract Purchase (PCP), Hire Purchase (HP), and leasing. The presenter emphasizes that there's no universal 'cheaper' option, as individual circumstances like salary sacrifice or company car schemes significantly influence the outcome. Using a Tesla Model 3 Standard Range Plus as a case study, the analysis reveals that HP is the cheapest option over a three-year period, followed by PCP, with leasing being the most expensive. The presenter highlights that PCP's lower monthly payments compared to HP are due to a substantial balloon payment at the end, which is offset by the car's residual value. A key takeaway is the importance of considering the total cost of ownership and the car's potential resale value, especially given the current strong used EV market. The presenter advises viewers to perform their own calculations based on current figures, as market conditions and interest rates can drastically alter the cheapest path.