Glossary

G

• Grey Import

  A grey import is a car that, although it is nominally the same make and model of car as one you could find in the high street, has actually arrived from abroad. The problem with a grey import is that though it may be very similar to the UK model, there are often difficulties finding replacement parts for it. Under the hood they will have different component manufacturers and parts, and sourcing them is too much effort. For this reason it is very difficult, if not impossible, to find a car finance company willing to give you finance to buy a grey import.

• Guaranteed Asset Protection

  With guaranteed asset protection (GAP) insurance, if your car is written off you can cover the difference between what the insurance company will pay out on the car, and the amount you owe to the loan company. In other words, if you still owe £1,000 on the written-off car and the insurance company values it (and pays out at) £500, then not only are you are £500 out of pocket but you also no longer have a car. GAP insurance would ensure you are covered for the remaining £500. Since insurance shortfall does without a doubt pack a nasty sting, it is certainly wise to take out guaranteed asset protection insurance.

H

• Hire Purchase

  Hire purchase is a very simple concept. You put down an initial amount of money on a car, and thereafter make agreed monthly repayments. Once you’ve signed the hire purchase agreement you can drive the car away the same day. The reason this is called hire purchase, is because after you have made the agreed amount of monthly payments (the ‘hire’ part) you then own the car (the ‘purchase’).