Anything you own that is worth something commercially. The value of an asset can be financial (money, stocks, bonds, shares, invoices, securities), physical (buildings, machinery, cars, land), or intrinsic (qualities, skills, attributes).
It's usually based on each vehicle's 'List Price', including VAT, additional options and other manufacturer charges, and enables the tax office to work out how much you owe them for using a company vehicle. Please refer to the HMRC website for more information.
‘BHP’ is a measurement of how much horsepower a vehicle’s engine generates, after the loss in power caused by various components such as the gearbox, generator, water pump, alternator, power steering pump etc that are also consuming energy.
A specific, mobile service designed to help drivers when they break down. Whether at home, on the road or abroad, the recovery service repairs their vehicle or rescues them and gets them home if it can’t be fixed.
A third party who facilitates the sale of goods, arrangement of finance or other services between a buyer and a seller usually for a commission or a fee. A broker would represent either the buyer or the seller, but not both at the same time.
Also known as Carbon Dioxide, a vehicle's CO2 emissions are measured in g/km. This information can be used to assess a vehicle's environmental impact, and is also used to determine company car tax and road fund license costs.
A vehicle is leased for a pre-determined period. The leasing company that owns the vehicle contracts with the customer to pay a fixed monthly rental over a set period (usually 3 to 5 years) for the use of the vehicle. At the end of the contract the customer returns the vehicle to the leasing company.
An 'On-Balance-Sheet' funding method for businesses. The vehicle cost is paid back in regular monthly sums. At the end of the contract, the organisation or the driver can buy the vehicle if they wish, using a balloon figure / guaranteed value.
The value that a vehicle loses during the life of its contract. Put another way, it’s the difference between the vehicle’s original purchase price and its residual sale price at the end of its contract.
Part of the Health and Safety Act 1974, this legislation requires employers to ensure the health, safety and welfare of their employees in the workplace at all times. From a fleet perspective, this relates to the management of ‘on-road risk’.
The customer, or the leasing company wishes to end the vehicle leasing contract early before the scheduled end date. When this happens the customer usually has to pay an early termination charge as detailed in their contract.
Typically, a hire purchase agreement is a regulated credit agreement that incurs interest. The finance company retains title in the vehicle and the customer makes monthly repayments for it under the terms of the agreement. When all payments have been made, the title of the vehicle transfers to the customer so they own the vehicle outright.
Similar to a hire purchase agreement (see above) however the monthly repayments are typically lower than HP because the final payment due is a lump sum based on the predicted value of the vehicle at the end of the contract term.
A unique seven-character code which the DVLA gives to every vehicle. The first two letters denote the location where the vehicle was registered. The two numbers indicate when. The last three letters are random, to ensure uniqueness and improve security.
An agreement where an organisation sells a vehicle they own to a leasing company, who then lease the vehicle to them at a fixed monthly rate. The initial sale provides the company with an injection of capital.
Vehicle servicing is carried out on a regular basis, determined either by how many miles it has travelled or how many months have elapsed since its last service. These intervals are specified by the vehicle manufacturer.
A vehicle registration document. Issued by the DVLA, it includes key information such as the current owner’s name and address, together with the details of its two previous registered keepers. The V5 also lists the vehicle’s colour, make, model, engine number and vehicle identification number.