Financial lexicon
A
Amortization
Amortization is the scheduled repayment of a debt. In the case of full amortization agreements, the acquisition value and other costs, including the lessor's financing costs, are fully amortized by the lessee's payments. In the case of partial amortization agreements - also known as non-pay-out leases - only partial amortization is achieved during the term of the agreement.
Annuity
As a rule, lease payments are annuities. This means that at the beginning of the contract term, the interest portion is higher than the repayment portion. Towards the end, this turns around.
C
Coverage amount
The coverage amount is the maximum amount for which the liability insurance will pay in the event of a claim.
D
Debt waiver for credit
In the event of the borrower's death, the debt waiver covers the outstanding loan balance. The vehicle is included in the estate free of encumbrances.
Deposit
At the start of the contract, you deposit a sum of money (max. 50% of the vehicle price - excluding VAT), which is returned to you at the end of the term. Porsche Bank passes on the resulting savings in financing costs to you in the form of a reduced leasing fee.
Down payment
The deposit is paid at the beginning of the contract period. It reduces the calculation basis and thus your monthly fees. The amount of the down payment can be up to 30% of the net purchase price.
E
Euribor
The "Euro Interbank Offered Rate" is the interest rate that European banks charge each other when trading fixed-term deposits.
Extended warranty
With the warranty extension, you extend the warranty services for your vehicle beyond the manufacturer's warranty. Optionally for specific assemblies or to the extent of the manufacturer's warranty.
F
First payment on credit
In the case of credit, the first payment includes the down payment and processing costs.
Fleet Management
As the market leader, we offer you management systems that ensure effective consulting and efficient fleet management with personal support. You can outsource fleet management in part or in full to us. A clear brand and model policy ensures cost advantages in acquisition and maintenance.
L
Lease payment
Lease payments are the monthly payments made by the lessee to the lessor.
M
Motor vehicle legal protection
The object of the legal protection insurance is the representation of the legal interests of the policyholder and the assumption of the costs thereby incurred to the extent insured.
O
Operating Leasing
This leasing variant is the basic variant of leasing - a pure rental variant. You use a vehicle for an agreed period, return it after this time and take a new one. At the end of the contract, Porsche Bank takes care of the sale of the used car and bears the entire risk of disposal. The lease payment is fully tax-deductible, provided the purchase price of the vehicle does not exceed EUR 40,000 or is used solely for business purposes. For private customers, operating leasing is only possible in conjunction with vollKASKO and SERVICE.
Own contribution
Own contribution refers to existing funds that you wish to contribute to the contract in order to reduce your financing costs. The own contribution can be used as a VZ deposit, deposit or down payment, as desired.
P
Passenger accident insurance
Passenger accident insurance provides you with insurance coverage for all vehicle occupants, including family members, especially in the event of own fault for the driver. Benefits from passenger accident insurance are paid in addition to other insurance benefits.
Pool Leasing
This flexible leasing option is based on a framework agreement that includes a combination of leasing and maintenance contracts. Only in conjunction with Porsche Bank Fleet Management.
R
Replacement car claim
In return for a 25% reduction in the premium for motor vehicle liability insurance, you waive in a supplementary agreement for yourself and your passengers in the event of future accidents caused by third parties, in particular the assertion of claims for replacement vehicle costs and loss of earnings due to the inability to use your own vehicle.
Residual loan
The agreed amount not to be repaid during the term of the contract, which becomes due at the end of the agreed credit period. The outstanding credit balance can be repaid at the end of the credit term or you return the vehicle to the dealer. The trade-in price is credited against the open loan balance.
Residual value
The calculated residual value of a leasing or loan agreement should be based on the agreed term and kilometer performance of the vehicle and correspond to the expected used car proceeds. Any excess or shortfall between the calculated kilometers and the used car proceeds is settled with the lessee.
S
Services
Leasing is often supplemented with services beyond the pure financing function. This ranges from the integration of special insurance policies to the complete management of vehicle fleets by the lessor.
T
Terms
The terms of leases are based on tax regulations and the useful economic life of the leased asset. As a rule, they are between 40 and 90 % of the normal useful life.
V
VZ deposit
The prematurely repayable deposit (VZ deposit) is divided by the months of the agreed term. Each month, a portion of the VZ deposit is used to reduce the monthly payments. At the end of the term, the VZ deposit is used up. You can contribute up to 50% of the net base price as VZ deposit.
W
Waiver of claims for leasing
In the event of the lessee's death, the waiver covers any difference between the vehicle proceeds and the break-up value.