Car & Vehicle Leasing uk

vehicle leasing, contract hire & financial glossary ( E-Z )

Financial Terms ( E-Z )	Explanation
Equity	The value of the vehicle less any outstanding finance
GAP	GAP or Guaranteed Asset Protection is insurance protecting the borrower in the event a vehicle be written off or stolen. The payment tops up whatever is paid by the Car Insurance Company sufficently to pay off all outstanding finance
GMFV	Guaranteed Minimum Future Value of a vehicle
HPI	HPI refers to checks carried out to ensure that a vehicle has no outstanding finance prior to sale or transfer. Also reveals if the vehicle has been imported or may have been written off in an accident
Income Protection Insurance	Insurance often refered to as (ASU) Accident, Sickness, Unemployment. Also refered to as (PPI) Payment Protection Insurance. This type of cover is designed maintain vehicle payments in the event of an accident, sickness or unemployment
IPT	Insurance Premium Tax payable on all Insurance premiums
Lessee	The person who has leased the vehicle
Lessor	The lessor is the company leasing you the vehicle
MRP	Manufacturers Recommended Price
PPM	Pence per Mile
RFL	Road Fund Licence
SMR	Service Maintenance & Repair
Status/Non-status	Status, is associated with standard contract-hire terms, non-status applies to new start companies, adverse credit and/or limited accounting information.
With Maintenance	The part of a vehicle finance agreement which covers servicing, repairs and tyre replacement
WLC	The Whole Life Cost, costs including depreciation, servicing, fuel etc for running a vehicle for a defined period of time