Glossary of Terms
· The management of situations arising out of a motoring accident involving a company’s vehicle and its driver. The accident management solution will help for all faults, non-faults and split liability. Motor incident for clients is available for both business & personal drivers. Get more info on our dedicated accident management page here.
· When leasing a vehicle, the deal is partially calculated based on how many miles the driver intends to travel yearly. The annual mileage normally agreed on your leasing contract can be from 5,000 miles to 50,000 miles.
· The agreed mileage permitted each year without incurring additional charges, according to the terms of the contract.
· An arrangement fee also referred to as an administration charge/set up fee is implemented to cover the cost of processing the finance application & dealing with the contract documentation.
BIK (Benefit in Kind)
· Benefits-in-kind is a taxable benefit received by employees in addition to their salaries such as a company car and fuel allowance.
Business Contract Hire
· Business Contract Hire is eligible for those customers whose qualify as any of the following: self-employed, sole trader, LLP, partnership, limited company or business owner. Most Business Contract Hire customers are required to have been trading for at least a year if possible. On our website, business contract hire prices are stated as plus VAT.
· In Contract hire, a company or individual hires and drives the car for a determined period of time. On our website, you can get the vehicle for an agreed period of time which is usually 24, 36, or 48 months with an agreed annual mileage. The customer pays regular monthly payments as well as a small initial rental payment. At the end of the contract term/period the vehicle is returned back to the company and you can negotiate delivery of a new replacement model.
· The contract length determines the size of your monthly payments on the agreed 24, 36 and 48 months contract.
· The reduction in value of the vehicle as it is used each year due to wear and tear and the annual mileage covered.
· It is normally calculated as the difference between the purchase price and its worth at the end of the contract.
Excess Mileage Charge
· If you have exceeded the agreed contract mileage then you would normally be charged for any excess mileage you do. This normally comes in PPM (Pence Per mile).
· Finance lease/leasing is a form of vehicle leasing contract which is normally offered to business persons. Compared to Contract Hire agreements, finance leases offer a 100% tax deduction to qualifying businesses. There is no option to purchase the vehicle but a possibility to continue paying to operate it.
· Fleet is the term used to describe a group of vehicles and Fleet Management is a function which includes managing companies’ fleet of cars & vans, including vehicle financing, servicing & maintenance.
Free Nationwide Delivery
· We offer free UK mainland delivery of your new vehicle to any address.
· In the case of the car being stolen, a fire or any accidental damage; the GAP insurance covers any additional cost that your insurer won’t pay out for. GAP insurance covers the difference between the cash value of the vehicle and what you still owe on the lease contract.
· Hire purchase combines elements of both a loan and a lease which allow you to own a vehicle at the end of the agreement with simple regular payments and no mileage restrictions.
· This is the first payment which you pay as the first payment for your leased vehicle. It is normally calculated as 3, 6 or 9 months of your monthly rental. A higher initial payment will reduce the amount of monthly rental payments.
Manufacturer OTR (On-the-road price)
· On our deal pages, it clearly states the Manufacturer’s on the road price for ease of comparison with a number of available leasing deals. The Manufacturer’s OTR includes the price of options, delivery charges, VAT, and Road Fund Licence.
· The number of payments making up the initial rental payment followed by the number of remaining monthly payments for example: 3+35, 6+35, 9+35, 3+23, etc...
Personal Contract Hire
· Personal contract hire also known as personal leasing works in the same way as business leasing but the prices are generally slightly more expensive and stated including VAT. It is designed specifically for personal customers.
· Residual Value is the figure used to predict the vehicles value after a period of time.
· At Select Car Leasing, it is easy to find good value deals at discounted price on our dedicated special offers page where you can get great pricing on agreed contract terms.