A document signed when the customer takes delivery of a vehicle. The date normally signals the start of the agreement and payments then begin one month later.

An initial payment of up to 50% of the total rental value, there is no upper payment limit on personal contract purchase agreements.

A balloon payment is the amount of money which is owed to the finance company once a leasing contract has finished, when all the monthly payments have already been made. This lets a borrower make paym [..]

Limited companies and non-government customers can claim back 50% of the VAT on their finance rental and 100% of the VAT paid on their service agreement.

The amount of C02 that a car emits affects the amount of company car tax and Road Fund Licence that it attracts.

The legal protection for individuals, unincorporated companies and partnerships. Regulated Credit Agreements must have a cooling off period where they can be cancelled.

This is when a business leases a vehicle. This normally means that a number of different people will be using the vehicle, and its important that it shouldn't be used for personal use.

An 'Off Balance Sheet' method where a company hires a vehicle for a specified period and makes regular payments. The dunder retains ownership and all of the associated risks.

An 'On Balance Sheet Method' which is similar to Contract Hire but where the customer can buy the vehicle come the end at the contract. The vehicle can be purchased for a pre-determined amou [..]

This is the amount of value that a vehicle will lose over a certain period of time. The deprecation is the difference between the original price and how much it'll be worth after the lease is ove [..]