Personal Contract Hire (PCH): Rental agreements where you cannot become the legal owner of the vehicle as you are renting it from Suzuki Personal Contract Hire. This is a flexible option allowing you to drive a newer model. Optional vehicle maintenance packages can be included. Credit Agreement: A credit agreement is a legally-binding contract between you (the customer) and the finance company. It must include details of the loan amount, the term, rates of interest, other charges and your rights and responsibilities for the duration of the agreement. You will receive a copy of the agreement you have entered into. Deposit: A deposit is often required to secure and finance your vehicle. The larger the deposit the less you will need to borrow and this could mean lower monthly payments. A deposit could be cash or part exchange or a combination of both. If you are part exchanging your vehicle and you still have outstanding finance then your deposit will be the part exchange value of your vehicle less the outstanding settlement figure. Your Retailer will be able to take care of these arrangements for you. Depreciation: A vehicle is an asset, but inevitably with age and wear and tear it will reduce in value. This is depreciation. Early Settlement: This is when you pay off a finance agreement before the agreed term is completed. By doing so you may save on the interest that would have been charged for the remainder of the agreement. Guaranteed Minimum Future Value: A Guaranteed Minimum Future Value (GMFV) is equivalent to the deferred optional Final Payment and is set based on the estimated value of the vehicle at the end of the agreement. This value assumes that when returned the vehicle is within the maximum agreed mileage and in good condition. The GMFV is deferred to the end of the agreement and, along with any purchase fee applicable, is the optional Final Payment. The risk of depreciation above the level of the GMFV is taken by Suzuki Finance so you can hand the vehicle back with nothing further to pay at the end of the agreement.* Hire Purchase (HP): Suzuki Finance buys the vehicle on your behalf and you pay an initial deposit. The remaining balance plus interest is then paid over an agreed period of one to five years. These are fixed costs, meaning that the APR (Annual Percentage Rate) is set before the contract begins and will not change. Personal Contract Purchase (PCP): Personal Contract Purchase is essentially, the same as a standard Hire Purchase agreement but with a proportion of the amount of credit deferred until the end of the agreement. Unlike Balloon Hire Purchase, the value of the vehicle at the end of the contract is guaranteed to at least equal that of the deferred optional Final Payment if you exercise the Goods Return Option. Under PCP, you have the following options at the end of the agreement: Renew – part exchange the vehicle subject to settlement of your existing credit agreement; new finance agreements are subject to status. Return the vehicle and not pay the deferred optional Final Payment – providing the vehicle is in good condition and has not exceeded the maximum agreed mileage you will have nothing further to pay – if the vehicle has exceeded the maximum agreed mileage a charge for excess mileage will apply. Retain – pay the deferred optional Final Payment and title of the vehicle will be transferred into your name. Maintenance Contracts: An optional, chargeable product offered by finance companies and Retailers to spread the cost of motoring. Maintenance contracts usually include vehicle servicing and repairs as well as replacement of wear and tear items such as tyres. Non-Regulated Agreement: A credit agreement non-regulated by the Consumer Credit Act. Therefore not bound by the same legal requirements as a regulated agreement nor offering the same type or level of protection. Purchase Fee: A voluntary payment at the end of some finance agreements (such as Hire Purchase) which, if paid, transfers ownership of the vehicle from the finance company to you. Part Exchange: Part exchange involves trading in your existing vehicle and using its value as part payment for your new vehicle, perhaps to help fund a deposit under a finance agreement. Option not available on Personal Contract Hire. Regulated Agreements: Most types of credit and hire agreements are covered by the Consumer Credit Act which gives you some important rights such as your right to cancel the agreement within a given time, and protection against both the lender and the supplier for faulty goods. An agreement covered by the Act is called a regulated agreement. An agreement will be automatically regulated if: – the borrower is an individual borrowing for mainly personal use rather than business use, or the borrower is a sole trader or a partnership with up to 3 partners – it is not an exempt agreement – exempt agreements include things like gas and electricity agreements and loans from employers, these agreements are not regulated by the CCA. If your agreement is regulated under the Consumer Credit Act, Suzuki Finance will provide you with the information before, during, and after the agreement is taken out and Suzuki Finance give you a written copy of the agreement including the type of credit, the amount and timing of repayments, the cost of credit, cancellation terms, and the protection and rights provided by the agreement. Satisfactory Quality: By law, goods sold must be of satisfactory quality and fit for the purpose for which they were intended. Where there is a credit agreement in place the finance company has a responsibility for the quality of the goods and to resolve any disputes where the goods are not of the required standard. Voluntary Termination: You have a right to end the agreement by giving us written notice. If you do so you must immediately return the goods to
us which includes making the payments detailed in the ‘Termination: Your Rights’ section on your credit agreement.