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Personal Contract Purchase
Personal contract purchase (PCP), often referred to as a personal contract plan, is a form of hire purchase vehicle finance for individual purchasers, similar to both personal contract hire and a traditional hire purchase (buying on installments). Unlike a traditional hire purchase, where the customer repays the total debt in equal monthly instalments over the term of the agreement, a PCP is structured so that the customer pays a lower monthly amount over the contract period (usually somewhere between 24 and 48 months), leaving a final balloon payment to be made at the end of the agreement. The total borrowing is the same in both cases, and interest is payable on the entire amount (including the balloon payment on the PCP). At the commencement of the agreement, the balloon payment is planned to be less than the value of the vehicle at the end of the term, creating equity that may be used as a deposit on another vehicle purchase. That the balloon payment is planned to be less tha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hire Purchase
A hire purchase (HP), also known as an installment plan, is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g., 40% of the total) and repaying the balance of the price of the asset plus interest over a period of time. Other analogous practices are described as closed-end leasing or rent-to-own. The hire purchase agreement was developed in the United Kingdom in the 19th century to allow customers with a cash shortage to make an expensive purchase they otherwise would have to delay or forgo. For example, in cases where a buyer cannot afford to pay the asked price for an item of property as a lump sum but can afford to pay a percentage as a deposit, a hire-purchase contract allows the buyer to hire the goods for a monthly rent. When a sum equal to the original full price plus interest has been paid in equal installments, the buyer may then exercise an option to buy the goods at a predetermined price (usually a nominal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vehicle Leasing
Vehicle leasing is the leasing (or the use) of a motor vehicle for a fixed period of time at an agreed amount of money for the lease. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay. The key difference in a lease is that after the primary term (usually 2, 3 or 4 years) the vehicle has to either be returned to the leasing company or purchased for the Profit (accounting), residual value. Rationale Vehicle leasing offers advantages to both buyers and sellers. For the buyer, lease payments will usually be lower than payments on a car loan would be. In most states, any sales tax is due only on each monthly payment, rather than immediately on the entire purchase price as in the case of an instalment sale or loan. Some consumers may prefer leasing as it allows them to simply return a car and select a new model when the leas ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Balloon Payment
A balloon payment mortgage is a mortgage that does not fully amortize over the term of the note, thus leaving a balance due at maturity.Wiedemer, John P, ''Real Estate Finance, 8th Edition'', p 109-110 The final payment is called a ''balloon payment'' because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate today due to the prevalence of mortgages with longer periods of amortization, in particular, the 30-year fixed-rate mortgages.Fabozzi, Frank J. (ed), ''Handbook of Mortgage-Backed Securities, 6th Edition'', p 1125 A balloon payment mortgage may have a fixed or a floating interest rate. The most common way of describing a ''balloon loan'' uses the terminology ''X'' due in ''Y'', where ''X'' is the number of years over which the loan is amortized, and ''Y'' is the year in which the principal balance is due. An example of a balloon payment mortgage is the seven-year Fannie Mae Balloon, which features monthly ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Equity (finance)
In finance, equity is an ownership interest in property that may be subject to debts or other liabilities. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule. When liabilities attached to an asset exceed its value, the difference is called a deficit and the asset is informally said to be "underwater" or "upside-down". In government finance or other non-profit settings, equity is known as "net position" or "net assets". Origins The term "equity" describes this type of ownership in English because it was regulated through the system of equity law that devel ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Credit Act 1974
The Consumer Credit Act 1974 (c. 39) is an Acts of Parliament in the United Kingdom, Act of the Parliament of the United Kingdom that significantly reformed the law relating to consumer credit within the United Kingdom. The act remains in force, albeit heavily amended and partially replaced. Prior to the Consumer Credit Act, legislation covering consumer credit was slapdash and focused on particular areas rather than consumer credit as a whole, such as moneylenders and hire-purchase agreements. Following the report of the Crowther Committee in 1971 it was decided that wide-ranging reform of consumer credit law was needed, and a bill to do this was introduced to Parliament. Despite its progress through Parliament being disrupted by February 1974 United Kingdom general election, a general election, the bill passed quickly through the legislative process thanks to support from both the government and the opposition, coming into law on 31 July 1974. The Act introduced new protectio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Option (law)
An option contract, or simply option, is defined as "a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke an offer". Option contracts are common in relation to property (see below) and in professional sports. An option contract is a type of contract that protects an offeree from an offeror's ability to revoke their offer to engage in a contract. Under the common law, consideration for the option contract is required as it is still a form of contract, cf. Restatement (Second) of Contracts ยง 87(1). Typically, an offeree can provide consideration for the option contract by paying money for the contract or by providing value in some other form such as by rendering other performance or forbearance. Courts will generally try to find consideration if there are any grounds for doing so. See consideration for more information. The Uniform Commercial Code (UCC) has eliminated a need for consideration for firm offers bet ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance And Leasing Association
The Finance and Leasing Association (FLA) is the leading trade association A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific Industry (economics), industry. Through collabor ... for the UK consumer credit, motor finance and asset finance sectors, and the largest organisation of its type in Europe. Members of FLA include: banks, subsidiaries of banks and building societies, the finance arms of retailers and manufacturing companies as well as independent firms. They also represent 75% of "second charge" lenders and in the wake of the growing credit and mortgage problems, have extended their support of so-called responsible lending. Members provide a range of services including: finance leasing, operating leasing, hire purchase, conditional sale, personal contract purchase plans, personal lease plans, secured and unsecured personal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Depreciation
In accountancy, depreciation refers to two aspects of the same concept: first, an actual reduction in the fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used (depreciation with the matching principle). Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span. Businesses depreciate long-term assets for both accounting and tax purposes. The decrease in value of the asset affects the balance sheet of a business or entity, and the method of depreciating the asset, accounting-wise, affects the net income, and thus the income statement that they report. Generally, the cost is allocated as depreciation expense among the periods in which the asset is expected to be used. Account ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Society Of The Irish Motor Industry
The Society of the Irish Motor Industry, known as SIMI, is an Irish trade association representing the automotive industry in Ireland with its membership including dealers, vehicle distributors and wholesalers. History There were two motor trade organisations in Ireland, the Society of Irish Motor Traders and the Irish Motor Traders Association. It was proposed at a Society of Irish Motor Traders annual dinner held on to dissolve both the society and the traders association to form a singlular organisation due to changes in the motor industry and company structure along with overlapping interests between the organisations. SIMI was formed on at an annual dinner in the Intercontinental Hotel in Dublin which marked the inauguration of the organisation. William G. Wilkinson, former president of the Society of Irish Motor Traders and later president of SIMI, also officially announced that there were plans to host a motor show in Ireland with assistance from the Society of Motor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Grant Thornton International
Grant Thornton is a multinational professional services network based in London, United Kingdom. It is the seventh-largest in the world by revenue and the sixth-largest by number of employees. The network consists of independent accounting and consulting member firms that provide assurance, tax, and advisory services to privately held businesses, public interest entities, and public sector organisations. Grant Thornton is composed of member firms affiliated with Grant Thornton International Ltd., a private company limited by guarantee, incorporated in England and Wales. Grant Thornton is a not-for-profit, non-practising, international umbrella membership entity, and has no share capital. Member firms within the Grant Thornton network operate in 147 markets employing around 73,000 personnel for a combined global revenue of US$7.5 billion. History 20th century The earliest origins of the name date back to 1904, when the UK firm of Thornton and Thornton was formed in O ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract Law
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more Party (law), parties. A contract typically involves consent to transfer of goods, Service (economics), services, money, or promise to transfer any of those at a future date. The activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek legal remedy, judicial remedies such as damages or equitable remedies such as specific performance or Rescission (contract law), rescission. A binding agreement between actors in international law is known as a treaty. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that pacta sunt servanda, agreements must be honoured. Like other areas of private law, contract law varies between jurisdictions. In general, contract law is exercised and governed either under common law jur ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
