Car & Vehicle Leasing uk

vehicle leasing, contract hire & finance glossary

Financial Terms (A-D )	Explanation
3 x 35, 6 x 35 etc	3 / 6 The number of initial payments. 23, 35, 47 The number of payments within the agreement
Advance	Total amount of a loan
Annual Percentage Rate or APR	The total interest payable on a loan
Balloon	Payment due at the end of a Contract Purchase agreement which pays to buy the vehicle. Often clients return the vehicle and replace with new one.
Car Allowance	Payment made by a company to an employee in lieu of a company car. Normally paid monthly through salary and is broadly equivalent to the leasing cost of the car
County Court Judgment or CCJ	County court order made against a borrower who has defaulted on payments
Contract Hire	Fixed period vehicle rental e.g 12 months, 24 months available to include vehicle maintenance etc. Payments include VAT,  Please See Finance Options Page
Contract Hire (Personal)	As Above, but for private individuals not VAT registered
Contract Purchase	Agreement to purchase the vehicle over a set period of time. Usually includes full maintenance (like Contract Hire). Often includes final balloon payment, Please See Finance Options page
Credit Score	Points system used by lenders in assessing a clients Credit Rating e.g        Home Owner, Tenant, Electoral Role. Each point earned improves the Credit Score
Credit Search	A credit check carried out by a credit reference agency to check your past and current credit record e.g If you have CCJs, defults etc. Check Your Credit File
Deposit	The amount of money you pay towards the vehicle agreement
Depreciation	The decreasing value of a vehicle over a period of time