Jargon Buster

• What does PCP mean?

  Personal Contract Purchase - lower monthly payments, but a large final payment if you want to actually own the car.

• What's the difference between PCP and HP?

  HP pays off the whole car with no final payment - PCP has lower monthly payments but a balloon payment if you want to keep it.

• What is a balloon payment?

  The large optional payment at the end of a PCP deal - pay it to own the car, or hand the car back instead.

• What is an insurance excess?

  What you pay towards a claim yourself before your insurer covers the rest.

• What is a no-claims bonus?

  A discount for each claim-free year - and even a non-fault claim can sometimes still affect it.

• What is GAP insurance?

  Guaranteed Asset Protection - covers the shortfall between what your car's insured for and what you still owe or paid.