Glossary of Terms

Term Description
Accident Management A central point to manage motorist claims after a road accident, windscreen damage, this includes vehicle recovery and loan vehicle supply, whether fault or no fault claim
All Wheel Drive (AWD) AWD is a powertrain capable of sending power to all its wheels, whether full time or on demand.
Annual Mileage The contractual maximum mileage allowed under the agreement. This is normally shown as annual or total mileage on your agreement.
BCH Business Car Leasing
Benefit in Kind (BIK) BIK is a tax applicable for drivers who receive the benefit of a company car from their employer. Its calculated using CO2 levels and the P11D value
BEV Battery Electric Vehicle
Business Contract Hire A finance method to allow you the use of a vehicle without ever owning the vehicle at the end of the contract. Designed for LLP or Ltd companies and VAT registered businesses
Breakdown Cover Normally covered by the manufacturer for the duration of the warranty. Also covered in maintained contracts
Car / Van Leasing A finance method to allow you the use of a vehicle without ever owning the vehicle at the end of the contract.
Cherished Number Private Registration Number
CO2 Carbon Dioxide emission level- gkm
Contract Term The length of your agreement - normally 24, 36, 48 or 60 months
Credit Decline This term is used by a finance company when they are not willing to lend money. Only you can find out the reason for the decline by writing to the credit reference agency which the funder has used.
Credit History This terms is a documented record of all financial transaction and how well they have been paid back over a set period of time. This shows how well you handle money or debt
Credit Rating This number is used by lenders to qualify your creditworthiness in general terms or to asses your financial obligations
Credit Reference Agency These agencies are used by finance companies to understand if you are eligible to be offered a finance product. Typically Experian, Equifax and TransUnion are used in the UK
Depreciation The amount of money lost from when a vehicle is bought, compared to its value on specific date and mileage (or when you sell it) 
Early Termination This is a term used to bring an end to a contract/agreement before the end date. Charges will usually apply for early terminations
Estimated Delivery This is a date when our suppliers envisage your vehicle arriving from the factory based on information given to them by the manufacturer
Euro NCAP Euro New Car Assessment Programme provides consumers with information on the safety or a vehicle. The higher the rating (stars) the safe the vehicle.
EV EV is a term used to describe Electric Vehicles. These vehicles are powered by an electric battery and can be charged from an external source. Sometimes known as a BEV (Battery Electric Vehicle)
Excess Mileage A charge made by a finance company for any vehicle exceeding the original mileage given by the customer at the start of an agreement. Normally show as pence per mile
Factory Order A sale made for a vehicle which will be built specifically for a customers personal choices. These vehicle take typically 3-12 months to arrive
Finance Lease This method is a form of flexible leasing to fund the use, but not ownership, of a vehicle and is ideally suited to a VAT registered business. This is not a personal finance product
Fleet Management This is a process or managing both cars and commercial vehicles, ensuring the optimal performance of those vehicles, ensuring the operation is efficient, safe and cost effective.
Formal Extension A formal extension is an agreed extension between the contract holder and the finance company. A formal extension agreement must be signed for it to go ahead
Free Delivery All vehicles are delivered free of charge to any UK Mainland destination. These vehicles are driven. This excludes Northern Ireland and transported delivery. Please ask for further details
Fuel Consumption A car's fuel consumption is a measure of the miles driven per gallon or litre of fuel
GAP Insurance GAP (Guaranteed Asset Protection) insurance is designed to bridge the “gap” between the market value of your car at the time it is stolen or written off, and the amount you paid to buy it
Guaranteed Future Value (GFV) GFV is used when funding a vehicle via PCP  (Personal Contract Purchase) and is based on a set period and mileage. This is a value you can use t purchase your vehicle.
Hire Purchase HP is a way to finace the purchase of a new or used vehicle. Normally a deposit is paid and you then pay of the value of the vehicle  in monthly instalments, with the agreement secured against the vehicle. Interest and charges are added dependant of contract duration and mileage.
Hybrid Vehicle A vehicle that uses a combustion engine and an electric motor. Typically the vehicle cannot be plugged in to charge the battery. The battery is charged through regenerative braking and the internal engine
In Stock This terms has many meanings dependant on the company advertising the product, however in stock means a vehicle available for immediate delivery.
Informal Extension An informal extension describes the use of a vehicle past the contract end date/date the vehicle is to be collected. The term informal relates to there being an absence of an agreement in place.
Initial Rental The amount you pay before you take delivery of your vehicle. This is normally a multiplier of your monthly payment. 1, 3, 6, 9 or 12 months are normal
Insurance Group All UK vehicles belong to one of 50 car insurance groups, helping insurance companies set the premium you pay. Group 1 are the cheapest to insure and Group 50 are the most expensive.
Lease Purchase This is similar to Hire Purchase except the payments are structured like a lease agreement with customers making advanced payments rather than a deposit. A customer can own a vehicle outright after the agreement ends.
Maintenance This is a check used to ensure the smooth and safe running of your vehicle. Checks include gearbox, engine, suspension, body work amongst others.
Manufacturer OTRP The price shown on a manufacturers website, including VAT, VED and First Registration Fee
MHEV Mild Hybrid Electric Vehicle - commonly known as "start stop" vehicles
MOT Certificate Ministry of Transport Certificate is a document/test that confirms your vehicle is safe to travel on a public highway. Normally required after your vehicles 3rd anniversary and annually thereafter.
Motor Insurance an insurance product, required by law, to be in place on any motor vehicle if it is to be driven on a public highway. Fully Comprehensive insurance is required on any leased vehicle.
MPG Miles Per Gallon - the number of miles your vehicle can travel per gallon of fuel
No Deposit This term is used when you don’t have to pay a deposit at the start of an agreement. Normally, there is one initial rental required
P11D This is a value used for company car tax and its calculated using the manufacturers OTRP price (without any discount), plus factory options and including VAT
PCH Personal Car Leasing
PHEV Plug In Electric Vehicle
Payment Profile This is how your contract is calculated and the agreement if written. For example 3x35, 10,000 miles per annum, Full Maintenance
Personal Contract Hire Similar to Business Contract Hire except you include the VAT into the payments i.e. £300.00+vat (BCH) is £360.00 (PCH) inc VAT
Pre Registered The vehicle has already been registered with an owner. The vehicle is normally sill new and has not been driven
Private Registration A registration plate which is 100% unique to the driver
Processing Fee This is charged per agreement and this charge is to cover the costs of documents, processing and staff to arrange the agreement with the finance provider and the dealership
Remaining Rentals How many monthly rentals you have left before your contract expires
Reserve My Car When you "Reserve My Car" the vehicle is taken off our website for a period of 24 hours to allow us to see if it fits your requirements.
Residual Value This value is given to a vehicles worth after a certain period of time and mileage covered. Sometimes refer to as resale value
Service Intervals The duration in time for when your vehicle is required, as per the manufacturers guidelines, to receive a minor/major service. Refer to your owners manual
Stock Vehicles A vehicle which can be delivered within 28 days
Type 1 EV Charging The type 1 plug is a single-phase plug which allows for charging power levels of up to 7.4 kW (230 V, 32 A). Normally used for vehicles supplied via America or Asia.
Type 2 EV Charging The “Type 2” socket is the Europe-wide, universal socket for charging electric cars
ULEV Ultra Low Emission Vehicle
Used Vehicle A vehicle that has one or more private owners
VED / RFL Vehicle Excise Duty / Road Fund Licence - car tax
Vehicle Disposal This is a term used  when a vehicle comes to the end of its contract. Vehicles are normally sold via an auction house to obtain the highest value
Vehicle Tracking A "black box" is fitted to your vehicle to enable the location of your vehicle to be shown at all times
Whole Life Cost This terms is used to calculate all the costs associated with your vehicle over a set period of time. This includes lease or purchase costs, maintenance, tyres, insurance and fuel.
WLTP Worldwide Harmonised Light Vehicle Test Procedure and is the name of the test used to determine the fuel efficiency of your vehicle