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Glossary of Terms

  • Accounting Balance
    A portion of the outstanding balance comprising of finance charges (excluding the original cost of the vehicle). An amortization schedule is available upon request at our Customer Service Department on 0861 324 653 or fax (012) 660 7219 or simply send us an e-mail info@mbfssa.co.za.

    Capital Balance
    A portion of the outstanding balance comprising the original cost of the vehicle. An amortization schedule is available upon request at our Customer Service Department on 0861 324 653 or fax (012) 660 7219 or simply send us an e-mail info@mbfssa.co.za

    Deposit
    A deposit is an initial payment to be made at the beginning of a finance agreement. A deposit is not mandatory but may be required by the Credit Department.

    Disposal Risk
    Disposal risk is associated with selling your vehicle at the end of the agreement, i.e. finding a buyer and getting a fair price for your vehicle.

    Final Payment
    Final payment is a lump payment usually payable at the end of the agreement. Depending on the finance agreement you have decided on, several options are available.

    Fixed Interest Rate
    A finance agreement signed-up with a fixed interest rate, the monthly repayment will not be adjusted according to changes in the predetermined market rate.

    Fleet Management
    debis Fleet Management, a subsidiary company of Mercedes-Benz Financial Services, offers fleet management. This entails administration services for more than one vehicle.

    Off-Balance Sheet Funding
    Financing your vehicle in such a way that it is not reflected on the balance sheet of your business or employer. This facility is available to you because Mercedes-Benz Financial Services is prepared to carry the risk on certain finance agreements.

    Principal Debt
    The principal debt consists of the cost of the vehicle plus finance charges for the entire period of the agreement.

    Settlement
    Early settlement involves the paying of the outstanding balance before the end of the agreed period of your agreement.

    Wear and Tear
    Wear and tear entails the loss of value due to the usage of a vehicle for business purposes. The wear and tear amount can be claimed as a business expense.