Let us simplify leasing terms for you with our easy-to-use glossary.
A lease agreement where a vehicle is hired for a fixed period, and returning it at the end of the contract.
A leasing option for individuals where you lease a vehicle with fixed monthly payments and return it at the end of the term.
A leasing option for businesses that involves leasing vehicles with fixed monthly payments. VAT may be reclaimable.
The duration of the lease agreement, typically ranging from 2 to 5 years. It defines how long you will lease the car.
The maximum number of miles allowed to be driven under the lease agreement without incurring additional charges. Often highlighted as either a monthly or annual mileage allowance.
A payment at the beginning of your lease/contract hire, consisting of between 1-12 monthly rentals to reduce your monthly rental cost.
The amount you pay each month for leasing the vehicle.
In leasing terms, this usually refers to a package that is included in your monthly rental, which covers the costs of servicing, repairs and replacement tyres throughout your lease agreement.
The total price for the vehicle, including VAT, registration and the first year of road tax/vehicle excise duty, minus any discount from the supplier or manufacturer.
Also known as Vehicle Excise Duty, Road Fund Licence is a car tax, paid to the government, which drivers must pay to use their vehicle on UK roads. It's charged to help fund road maintenance and to improve roads across the country. RFL is usually included in the price of your lease agreement.
The choices available to you at the end of the lease term, including returning the car, purchasing it, or renewing the lease. Options may vary depending on your vehicle funders terms and conditions.
This is when a customer chooses to end their lease agreement prior to the end of its contract. You may incur charges from the lease company to terminate your agreement early.
A penalty fee incurred if you end the lease before the agreed term. This can vary depending on the lease agreement.
The expected normal deterioration of the asset due to regular use. Leases typically allow for reasonable wear and tear but charge for excessive damage.
An EV is an Electric Vehicle.
Benefit-in-Kind (BIK) are perks or fringe benefits that are given by employers but are not included in the employees salary.
Fleet vehicles are owned and used by an organisation, such as a company or government department, and are often managed by a fleet manager, transport manager or business owner.
The BVRLA is a trade body for companies engaged in vehicle rental, leasing and fleet management. They oversee conduct by companies who engage in leasing, vehicle hire & rental and fleet management, helping members (including Citygate Leasing) to uphold industry standards by ensuring transparency, compliance, and fair treatment for customers.
