Glossary
Part Exchange – Whereby the customer’s old vehicle is bought by the car dealer and that money is subtracted from the cost of the new vehicle. Part exchanging also means that the owner does not need to arrange to sell the vehicle privately. The part exchange value received from a dealer can be significantly lower than the amount that would be achieved by selling privately.
Payment Protection – This is an optional type of insurance that covers the cost of vehicle payments, in the case of illness, injury, unemployment or other events.
Personal Car Finance – Similar to Contract Hire, but for individuals rather than companies. The car is leased, and so not owned. Maintenance costs can also be incorporated into the monthly rental payment.
Petrol – Petrol is still the most popular fuel type, despite increasing competition from diesel and alternative fuels. Petrol cars tend to be faster, quieter and cheaper than the equivalent diesel car.
Pickup – A vehicle with an open top load carrying area. Some models are based on a car, or a variation of a van, and are often 4 wheel drive. The Mitsubishi L200 and Nissan Navara are popular pickups.
Pre Registered Vehicles – These vehicles are registered to a garage, lease company or dealer, but are then sold to private buyers. This can happen if a dealer wants to reach a sales target by registering a certain number of cars, or a company orders a certain amount of vehicles, and then changes their mind.
Quote – The best price, or other cost, provided by a dealer, lease company, finance company or insurance company.
Rear Wheel Drive – The engine drives the rear wheels, allowing the front wheels just to steer. Performance, executive and sports cars tend to be rear wheel drive, as the weight distribution is shared between front and rear, providing better handling and braking than front wheel drive cars. Some performance cars are rear engined and rear wheel drive. The Mercedes C Class is a popular rear wheel drive car.
Saloon – A design of car with the boot separate from the passenger area. Executive cars are often saloons. The Mercedes C Class, Toyota Avensis and VW Passat are common saloon cars.
Selling Privately – Instead of the car dealer taking the current vehicle in part exchange, the owner can sell it privately, and put the money towards the new vehicle.
Small Cars – Often 3 door hatchbacks with small engines and ideal for town and city use. They do not have large boots and are cheap to by and run. The Citroen C2 and Hyundai Amica are popular small cars.
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