Glossary

Repaying a debt in a number of instalments, wherein each payment covers the interest and also decreases the loan principal.

A statement outlining:

• All your assets, including property, vehicles and shares
• All your secured and unsecured liabilities, such as loans, credit card debts and mortgages
• Your Net Asset Position (the balance of the total value of your assets minus your total liabilities) 

The final balance due at the end of a loan or hire agreement. This amount is worked out at the beginning of the finance agreement and is included in your contract schedule.

Interest not paid, but added to the outstanding debt. You’ll also need to pay interest on the increased balance.

Where you own the vehicle and make regular repayments to Audi Financial Services. This loan is for people who buy their vehicle for personal use, rather than for business purposes.

Where you own the vehicle and make regular repayments to Audi Financial Services. You can only get this finance if you use your vehicle for business purposes.

The reduction of an asset’s value over its lifetime.

When you apply for finance, if we ask for your financials we mean information such as:

• An Asset & Liability Statement (A&L)
• A balance sheet
• A Profit & Loss Statement (P&L)
• Tax returns.

FBT is a tax applied to employers who provide their employees with fringe benefits such as a vehicle as part of their salary package.

A fringe benefit can help reduce the employee's income tax by reducing their salary. Though the employer is responsible for paying FBT, many will recover it from their employee as part of the packaging arrangement.

Where Audi Financial Services owns the vehicle and you buy it from us over time with regular repayments. Once you’ve made your final repayment, you own it. You can only get this finance if you use your vehicle for business purposes.

Guarantors are jointly and personally liable for the whole debt.

The agreed limit of finance that a guarantor is responsible for.

Ratio of the loan amount to the value of the asset.

A lease agreement between you and Audi Financial Services that your employer agrees to pay on your behalf by arranging a novation agreement. Having your employer make the lease repayments may offer you tax benefits, but if you leave your employment the lease terminates and you become responsible for making the repayments.

NPV (Net Present Value)

Today’s value of a future amount, before interest is earned or charged.

Nominal Interest Rate

The rate displayed on the documentation and agreement. It generally does not take inflation into account.