ilmscore | ACCOUNTANT EXPLAINS: Should You Buy, Lease or Finance a New Car

ACCOUNTANT EXPLAINS: Should You Buy, Lease or Finance a New Car

Published: 2023-02-19
Status: Available | Analyzed

Predictions from this Video

Total: 4
Correct: 0
Incorrect: 0
Pending: 4
Unrated: 0
Prediction
Topic
Status
The speaker predicts that the current surge in secondhand car prices will not continue for the next three years, and this 'bubble' is expected to burst before then.
"I don't think this is an accurate representation of what we can get for the car in three years time because secondhand car prices are going through the roof at the moment and I don't believe this will continue for the next three years I think this bubble will burst before then"
Secondhand car prices
Pending
Car dealerships promote PCP deals because they are the most profitable for them, as it encourages repeat business and trade-ins.
"the car dealership tries to sell you the PCP because it is the most lucrative for them they make the most money from it because it encourages you to stay with them and when the contract ends to upgrade your car and part exchange it so they keep making money from you"
Car dealership sales tactics
Pending
The speaker suggests that if one has the funds to buy a car outright, they should consider investing the remaining money after a deposit into assets like the S&P 500 to potentially yield a better return than the cost of financing.
"if you have thirty thousand and you paid the four thousand five hundred deposit and then you have the left over to invest in something like the S P 500 or another cash generating asset The question here is can you make a better return on that versus the additional cost of a financing option"
Buying a car outright vs. investing
Pending
The speaker suggests that purchasing a two to three-year-old pre-owned car, which has already experienced significant depreciation, could be the best option for most individuals, unless they have expertise in flipping cars for profit.
"unless you really know when it comes to cars and you can flip it on for a profit then instead buying a pre-owned car that's two to three years old and has already depreciated substantially at someone else's expense might well be the best option"
Buying a pre-owned car
Pending