Motoring jargon causing confusion among drivers

Market Briefing represents the views of the industry on issues affecting the leasing broker market. If you have a view you would like to express, please email the editor: ralph.morton@brokernews.co.uk. Market Briefing is supported by FleetProcure, the online vehicle purchasing system used by leasing brokers and dealers.

AUTOMOTIVE terms are proving baffling to customers, with car finance products among the most confusing, according to new research into internet search terms by Leasing.com.

The data shows that by simplifying the language used to lease and sell vehicles, there could be a significant increase in new business for leasing brokers and dealers.

Using the Ahrefs analytics tool, internet search data analysed by the leasing deal aggregator has found that both Personal Contract Purchase (PCP) and Personal Contract Hire (PCH) are often misunderstood.

Despite being the most popular way to finance a new car, people querying what “PCP” means accounted for more than half (52%) of the internet searches analysed – more than 13,000 searches over a one month period. PCH received more than 2,000 searches over the same period, 8% of total queries.

Term	Monthly searches for definition
PCP (Personal Contract Purchase)	13,180
PHEV (Plug-in Hybrid Electric Vehicle)	2,870
ICE (Internal Combustion Engine)	2,400
PCH (Personal Contract Hire)	2,060
HP (Hire Purchase)	1,640
EV (Electric Vehicle)	1,170
BEV (Battery Electric Vehicle)	460
Initial Rental	300
Balloon Payment	280
BCH (Business Contract Hire)	230
P11D	210
GMFV (Guaranteed Minimum Future Value)	180
HEV (Hybrid Electric Vehicle)	150

Paul Harrison, chief partnerships officer at Leasing.com, said:

“The confusion around PCP and PCH highlights a need for automotive businesses to further educate and inform buyers, particularly new car consumers who are especially interested in those finance products.

“This is particularly important ahead of the introduction of the FCA’s Consumer Duty, which sets higher and clearer standards for regulated businesses on consumer protection. This doesn’t just mean clearer information and processes in showrooms but across all digital channels to help increase understanding as soon as consumers start their car research.”