Are you one of those people who can traverse through the jargon jungle when it comes to car finance terms? If you are then Congratulations! you are part of a very exclusive group.
However, if not, please be reassured you're not alone.
Research shows that when it comes to car financing terms, only 1 in 10 people know what the salesperson is actually saying. Adermal Car Finance were the ones who conducted this interesting piece of research, with 2500 participants given a term and 3 options of what it could mean.
How will you fare?
HP = Hire purchase (30% knew this)
PCH = Personal Contract Hire (20% selected correctly). What is even worse, 24% thought PCH was a hallucinogenic drug and 15% assumed it was a completely made up term.
Here are some of the best responses the research discovered:
MSRP (Manufacturer’s Suggested Retail Price) – a food additive (32%)
GFV (Guaranteed Future Value) – gluten free vegans (23%)
PCP (Personal Contract Purchase) – a sexually transmitted disease (11%)
APR (Annual Percentage Rate) – London-based football club (6%)
This survey was conducted to bring to light the feeling consumers have when these acronyms and jargon are used with Scott Cargill, the chief executive of Admiral Financial Services Ltd saying “47% of respondents also said that they got frustrated when companies use acronyms when describing products, we wanted to raise awareness of the confusion and hope to inform more people on what the terms stand for.”