FAQs and Glossary
Details and useful facts
We have constructed a wide ranging Help section and alphabetical Glossary to assist online by speedily finding information.
Early Settlement is the termination of a finance agreement by paying all monies outstanding before the lease end date.
Early Termination is if a lease agreement is ended by the lessee before its agreed contract term, then the lessor will usually require and early termination payment. This may be a penal charge, but the many leasing companies often base the charge on the actual losses they incur due to the premature ending of the lease.
End of Contract Changes is defined as the repairs and refurbishment needed to bring the vehicle back to a “reasonable” condition for age and mileage at end of lease. It is unrealistic for lessors to expect back a vehicle in showroom condition, and hence the industry term of “fair wear and tear”. The British Vehicle Rental and Leasing Association (BVRLA) publish clear guidelines as to what should be regarded as fair. Excess mileage charges may also apply.
Ensurance is a cost effective product which can be added to your current insurance agreement (held with another supplier) to ensure your car will be repaired to Volkswagen standards using only Volkswagen parts and repairers, and that the performance and appearance of your car is preserved. It also covers legal expenses and includes a courtesy car while your car is out of action.
Equity is the value of your financial interest in a vehicle, calculated by subtracting the amount of the loan you have yet to pay off from the overall price of your car. If the actual value of your car exceeds the car’s guaranteed minimum future value, the extra money is equity that can be used as a deposit on your next car.
The miles that you exceed over the initial mileage that is specified in your finance agreement. Example If you have contracted to use 36,000 miles over a three-year period, and you use 40,000 miles, your excess mileage is 4,000 miles.
Excess mileage is a charge based on miles driven over the amount contracted in the lease agreement on return of the vehicle. The amount is calculated by taking the excess mileage rate of the vehicle and multiplying it by the number of miles covered above contracted miles agreed.
Experian is one of the companies that hold information regarding individuals and their past conduct in relation to credit that is of interest to lenders. This information can be used in order to help the creditor make a decision on whether or not to lend the customer money.
There are two types of contract extension. The first is an informal extension which is granted when a customer has a new vehicle on order with us. The contract is extended for the agreed period with no amendment to the monthly rental. The second is a formal extension which is for a 12 month period where the contract is rewritten therefore the monthly rental is likely to change and a modified agreement will need to be signed and returned.