Jargon Buster
Car leasing can be complicated, we understand that. Below is a list of some abbreviations or words you may come across that lack an explanation. We try to keep our use of jargon to as close to zero as possible, but just in case you come across any we have compiled a handy list for you.
PCH
Personal Contract Hire or more commonly known as car leasing. This is what we call the agreement when you are leasing a car for personal use.
BCH
Business Contract Hire or more commonly known as car leasing. This is what we call the agreement when you are leasing a single car or a fleet.
PCP
Personal Contract Purchase. This is the agreement where the driver owns the car at the end of the contract.
Balloon Payment
Typically a larger payment at the end of the contract. While there is no balloon payment with a lease, a balloon payment is common with other methods of car finance. We've compared different types of finance in our depreciation and equity blog.
MPG
Miles per gallon. A measure of how much fuel a car uses.
We've covered this topic in-depth here.
G/km
The measurement of vehicle emissions.
VAT
Value-added tax. Currently 20%.
Road Fund License
More commonly known as car tax.
Initial Payment
What the first payment will be. Not to be confused with deposit. Nonrefundable.
You can read our full guide to initial payment here.
Arval/ALD/Hitachi/LeasePlan etc.
Finance companies that may fund your vehicle.
Lead time
The time between making an order and taking delivery.
Non/Spec Amendable
If the car is not spec amendable, it means it has been built and can't be changed. If it is spec amendable we can customise it for you. Nonspec amendable cars are typically most common with stock deals.
Documents
Proofs and information we need. You can find all the information required in our guide.
Dealer
The place where the car is at or your deal is facilitated through.
Admin/doc Fee
Administration fee or document fee refers to what we charge for using our services. You can read about our fee here.
Total Repayable
How much you will pay as a total.
Bedroom Broker
An individual brokering leasing deals. It may not be regulated and risky.
Contract Length
How long you will be leasing the car. Typically 24, 36, or 48 months.
Contract Hire
Also referred to as a Personal Contract Hire (PCH) or Business Contract Hire (BCH) the term contract hire is the official title of car leasing.