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Car Finance terms beginning with C

Contract Hire

Contract Hire is one car finance option. It refers to the leasing of a vehicle for a set period of time, for which the customer pays a monthly leasing fee. This is generally less than hire purchase because at the end of the repayment period there is no option of ownership

Cost to Change

Cost to change refers to how much it would cost to change your car. This amount is calculated by the difference between the value of your existing vehicle and the price of a replacement car

Credit Agreement

The credit agreement is a clear contract between yourself and the lender. The credit agreement guarantees that you will receive the loan on your car, and also that you agree to pay off the loan at the required rate and at the required time. Normally, there is a ‘cooling-off’ period during which you can cancel the agreement

Credit Rating

Your credit rating affects whether you are entitled to a loan and on what terms. Your credit rating will be assessed depending on how much you are earning and whether you have had credit arrangements in the past

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