Please see below for information on Lease Purchase, Guaranteed Minimum Future Value (GMFV) and Loss Protection and Gap Insurance.
Lease Purchase offers you the same flexibility as PCP without the guaranteed future value element.
1. What does GMFV mean in terms of my finance plan?
The Guaranteed Minimum Future Value of your vehicle on finance is the estimated amount that it will be worth at the end of the agreement.
2. How does a GMFV work?
You may also hear a GMFV referred to as a balloon payment. It is offset until the end of the finance term. Making this payment at the end completes the agreement and gives you legal ownership of the vehicle.
1. How does Total Loss Protection work?
Total Loss Protection guards you against losses if your car on finance is stolen, involved in an accident or written off. It’s also known as Asset Protector and GAP insurance.
2. What is ‘Back to Invoice’?
Also known as ‘Return to Invoice’, this is a form of insurance based on the amount paid out by the motor insurance provider. It is separate to the car insurance that must be taken out on the vehicle.
3. What is ‘Back to Invoice’ GAP insurance?
The GAP insurance will be paid out to meet the difference between the value of the vehicle on the original invoice and the amount paid out by the car insurance provider. Under ‘Back to Invoice’ terms, this is paid directly to the motorist rather than the finance company.
4. How does GAP insurance work on a finance agreement?
It pays out to your lender if the car is written off or stolen. The insurance is an optional extra to supplement your agreement, and is not provided automatically. Please contact us to arrange GAP insurance.
5. How does GAP insurance work when a car on finance is stolen?
GAP insurance is designed specifically for situations such as this. If the vehicle is stolen or written off, you may remain liable for the finance outstanding. Your insurance will bridge the gap between the value of the car at the time of the incident and the amount you paid.