Acceptance fee | Administration fee to be paid at the same time as the first monthly payment |
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Annual percentage rate (APR) | Rate of the finance deal which includes all charges |
Balance to be financed | Amount to be financed (Cash Price - Deposit) |
Cash price | Recommended Retail Price |
Completion Fee | Administration fee to be paid at the same time as the last monthly payment and the Option to Purchase fee |
Credit facility fee | Administration fee to be paid at the same time as the last monthly payment and the Option to Purchase fee |
Deposit | A sum a money paid up front to reduce the amount to be financed |
Documentation Fee | Administration fee to be paid at the same time as the first monthly payment |
Excess mileage charge | Amount of money per mile to be paid when when the agreed mileage has been exceeded |
Excess wear and tear charge | Additional charge for rectification work where returned vehicles do not meet acceptable standards |
GAP insurance | Guaranteed Asset Protection - could cover the difference between what an insurance company will pay in the event of vehicle being stolen or written off and the original invoice price of the car. |
Hire Purchase | Traditional finance agreement whereby the customer pays a deposit, fixed monthly payments over a period of 1 - 5 years. Customer takes ownership when all instalments have been paid. |
Monthly payments | Monthly amount paid by the customer |
MRRP | Manufacturer's recommended retail price |
On The Road price | Cash price of the vehicle including registration fees etc |
Option to purchase fee | Administration fee to be paid at the same time as the last monthly payment to take ownership title of the vehicle. |
Optional Final Payment (OFP) | The OFP is the optional final payment due under a PCP agreement. It normally equates to the Guaranteed Future Value. |
PCP (Personal Contract Plan) | Generic term for Dacia Plan (Flexible HP with a Guaranteed Minimum Future Value) |
Dacia Plan | Flexible form of Hire Purchase with a Guaranteed Minimum Future Value |
Amount of credit | Amount borrowed |
Repayment credit | Length/ term of the finance agreement |
Outstanding balance | Balance to be financed |
Write-off | Total loss insurance claim. Vehicle is uneconomic to repair and total loss insurance claim is to be made. |