GWA Jargon Buster
Motor industry jargon in plain English!
Here’s a list of common motor industry jargon you’re likely to hear and what it all means…
Final lump sum payment
A maintenance contract that includes all servicing and tyres.
Guaranteed Future Value.
Hire Purchase, where you make payments towards owning the vehicle over a set term.
Personal Contract Hire, a very attractive proposition for those who do not want to tie their money up in owning a car and who want a vehicle for a fixed monthly cost.
Personal Contract Purchase, an agreement for individuals who wish to opt out of a company car scheme or who wish to have a car for their private use. This scheme gives you the ultimate in flexibility. At the outset you can choose the length of the period over which you wish the lease to run.
Lump and Bump
Increasing the cost of car and allowance on a part exchange to cover the equity required to pay a deposit on the new finance agreement.
Road Fund License or Road Tax.
This means there is a pause at the end of the agreement (normally the last 2 months where no payment is made eg. 3 + 33 months)
A rental agreement with no pause at the end eg. 3 + 35 months.
3 Up Front
3 monthly rentals paid as an initial payment on a finance agreement.