(1)In section 48 “car or motor cycle” means a mechanically propelled road vehicle other than one—
(a)of a construction primarily suited for the conveyance of goods or burden of any description, or
(b)of a type not commonly used as a private vehicle and unsuitable for such use.
(2)In section 48 “a qualifying hire car or motor cycle” means a car or motor cycle which—
(a)is hired under a hire-purchase agreement (see subsection (3)) under which there is no option to purchase,
(b)is hired under a hire-purchase agreement under which there is an option to purchase exercisable on the payment of a sum equal to not more than 1% of the retail price of the car when new, or
(c)is a qualifying hire car for the purposes of Part 2 of CAA 2001 (under section 82 of CAA 2001).
(3)For this purpose “hire-purchase agreement” means an agreement under which—
(a)goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
(b)the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following events occurs,
but does not include a conditional sale agreement (see subsection (5)).
(4)The events are—
(a)the exercise of an option to purchase by that person,
(b)the doing of any other specified act by any party to the agreement, and
(c)the happening of any other specified event.
(5)A “conditional sale agreement” means an agreement for the sale of goods under which—
(a)the purchase price or part of it is payable by instalments, and
(b)the goods are to remain the property of the seller (even though they are to be in the possession of the buyer) until specified conditions as to the payment of instalments or otherwise are met.
(6)In this section and section 48 “new” means unused and not second-hand.