Glossary

Explanations of some of the most commonly used finance terms.

	Definition
On the Road (OTR) Price	The On The Road price is the drive away price of the car, including the car's price, the cost of registration, road tax, insurance, any chosen options and any other costs needed to drive your new car on the road legally.
Customer Deposit	An initial payment paid by you towards the cost of the vehicle. This is paid before delivery of the car.
Honda Deposit Contribution	An amount of money that Honda contributes to your deposit.
Duration	Length of your agreement in months (includes the Final Payment).
Amount of Credit	The amount that Honda lends you, and you choose to borrow.
Total Charge for Credit	This is the full amount of charges that you will be required to pay for borrowing the money. It includes the interest chargeable and any fees . It is the figure that is used as the basis from which the annual percentage rate (APR) is calculated.
Total Amount Payable	The total amount you will pay under your finance agreement. It includes your deposit, any deposit contribution, all monthly payments, your Final Payment, the interest chargeable and any fees.
Final Payment	The final payment covers the full remaining balance of the finance. You can pay this and the Option to Purchase Fee to own the car or hand the car back to Honda (subject to mileage & condition).
Option to Purchase Fee	The fee payable with the final payment, that officially transfers legal title of the goods (vehicle) from the finance company to the customer.
Annual Contracted Mileage	For a PCP agreement, the annual mileage amount you will drive, agreed with you at the start of your contract.
Excess Mileage Charge per mile	Excess Mileage charge is the amount you will pay per mile if you exceed the contracted mileage limit that is set on a PCP agreement.
Interest Rate Per Annum Fixed	A fixed rate of interest is the rate of interest that will remain unchanged for the term of your finance agreement. It excludes any fees.
APR Representative	Annual Percentage Rate (APR) is the yearly percentage interest rate charged to you as the cost to borrow money for each year including any fees.