Glossary2

Glossary of leasing, contract hire and finance terms E - Z

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