Glossary of terms

Acceptance fee

Administration fee to be paid at the same time as the first monthly payment

 

Annual percentage rate (APR)

Rate of the finance deal which includes all charges

 

Balance to be financed

Amount to be financed (Cash Price - Deposit)

 

Cash price

On the Road Price

 

Credit facility fee

Administration fee to be paid at the same time as the last monthly payment and the Option to Purchase fee

 

Deposit

A sum a money paid up front to reduce the amount to be financed

 

Excess mileage charge

Amount of money per mile to be paid when when the agreed mileage has been exceeded

 

Excess wear and tear charge

Additional charge for rectification work where returned vehicles do not meet acceptable standards

 

GAP Insurance

Guaranted Asset Protection - could cover the difference between what an insurance company will pay in the event of vehicle being stolen or written off and the outstanding balance on a finance agreement

 

Hire purchase

Traditional finance agreement whereby the customer pays a deposit, fixed monthly payments over a period of 1 - 5 years. Customer takes ownership when all instalments have been paid.

 

Lease Hire

Fleet offer where the customer has the benefits of ownership, without ever owning the vehicle.

 

Mileage allowance

Total amount of miles permitted as per terms of the agreement

 

Monthly payments

Monthly amount paid by the customer

 

MRRP

Manufacturer's recommended retail price

 

On The Road price

Cash price of the vehicle including registration fees etc

 

Option to purchase fee

Administration fee to be paid at the same time as the last monthly payment to take ownership title of the vehicle.

 

Optional Final Payment (OFP)

The OFP is the optional final payment due under a PCP agreement. It normally equates to the Guaranteed Future Value.

 

PCP (Personal Contract Purchase)

Generic term for Dimensions (Flexible HP with a guaranted future value)

 

Registration fee

A charge levied by the government payable only when vehicles are registered for the first time

 

Dacia Dimensions

Flexible form of Hire Purchase with a guaranted future value

 

Total amount payable (TAP)

Cash price of the car + interest + fees

 

Insurance advance

Price of the insurance premium

 

Amount of Credit

Amount borrowed

 

Repayment period

Length/ term of the finance agreement

 

Outstanding Balance

Balance to be financed

 

Write-off

Total loss insurance claim. Vehicle is uneconomic to repair and total loss insurance claim is to be made.

 

Contract Hire

Fleet offer, off-balance sheet lease agreement

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