Vehicle Leasing FAQs

 

Terminal Pause

This refers to a payment profile such as ‘3 + 33’ or ‘3 + 21’. Basically, your payments would equate to the number of months over the period of hire, essentially a 3-month deposit, followed by either 21 or 33 payments. Because you have paid a 3-month deposit, you would not need to pay anything for the final two months of the contract.

 

Reduced Spread

More commonly used within the industry today as a way of keeping your monthly payments to be as low as possible. A ‘3 + 35’ or ‘3 + 23’ payment profile are the most common examples, simply meaning that you pay 3 months deposit, which is then followed by 23 or 35 monthly payments. This is a way of making 26 or 38 payments as opposed to 24 or 36; however, your payments are reduced because of it.

 

Document application Fee

This is normally a £90.00 + VAT charge which covers the costs for obtaining a credit acceptance from one of our financial providers, and arranging documents. This is not charged if for some reason we are unable to obtain funding, or you decide not to go ahead with a deal before you have signed an order.

 

APR

Annual Percentage Rate - The true rate of interest you are paying on a finance agreement.

 

Balloon Payment

This is the final end payment on a finance agreement. This would be an optional payment on a Personal Contract Purchase (Subject to terms & conditions), and compulsory on a product such as ‘Lease Purchase’.

 

Depreciation

The reduction in value of a vehicle caused by age, mileage and condition. This is what the majority of lease agreements payments are calculated on.

 

GMFV

Guaranteed Minimum Future Value.

 

GMFV

Manufacturers recommended price residual value. The value of the vehicle at the end of the contract, normally estimated at the beginning of the contract.

 

P11D Value

The value of the vehicle, being the price new together with the cost of the extras. This is for the Inland Revenue taxation purposes.

 

PPM

Pence Per Mile, normally referring to any excess mileage charges.

 

RFL

Road Fund Licence.

 

Please contact us today on:

Tel: 0208 301 0566