Want to get to grips with vehicle leasing? Here’s a helpful glossary.

3+23 or 3+35

‘3’ determines the value made on inception of the lease (initial rental) expresses as 3 x the monthly payment. ‘23’ or ‘35’ determines how many monthly rentals remain payable thereafter.

Breakdown recovery

A mobile repair and recovery service for instances when a vehicle will not start or has broken down.

CO2

Abbreviation of Carbon Dioxide. The amount a vehicle emits in g/km is used to calculate company car tax and road fund licence.

Contract Hire

A finance agreement where the customer pays for the use of a vehicle and simply hands it back at the end of the lease

Depreciation

The loss in value of an asset as it is used.

Excess mileage

When the mileage is over and above the miles originally specified on your finance agreement.

Excess wear and tear charges

Charges for damages to a leased vehicle that are greater than ‘normal’ or ‘reasonable’.

Finance acceptance fee

Usually paid by the customer at the start of a finance agreement, with the first rental payment.

GAP insurance

An insurance policy which could pay off the lease balance if a lease vehicle is involved in an accident or is stolen.

Lease term

Length of the contract period, usually expressed in number of months. Typical leases last for 24, 36, or 48 months.

Lessee

The vehicle hirer, customer or user of the vehicle who signed the lease agreement.

Maintenance

Offered with finance agreements and includes routine maintenance and servicing, mechanical repairs and replacement parts, tyres and exhausts.

Monthly payment / monthly rental

This is the scheduled payment for the vehicle and any other extras selected such as maintenance etc.

Peppercorn rental

A payment that you pay each year if you want to continue using the vehicle at the end of the contract (only applicable to Finance Lease).

Personal Contract Purchase (PCP)

Offers all the benefits of Contract Purchase to a private individual.

Road fund licence

Road tax.

Want to know more about our honest, open and refreshingly customer-centred approach to vehicle leasing?

Get in touch today. Call us on 01903 882 808 or email enquiries@autofunding.co.uk

Found your financing method?

Whether you know which option you want or require some expert assistance,AFS can help get the wheels in motion.
So call us today on 01903 882 808 or email enquiries@autofunding.co.uk.