Afs Resources

A final payment of a finance agreement – this is set at the start of the contract. Only applicable on some types of finance agreements.

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

A personalised number plate.

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

To comply with the law, finance businesses must have a credit licence to carry out certain activities in the field of credit and hiring.

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

A finance agreement where the customer pays for the use of a vehicle and has the option to purchase or hand the vehicle back at the end of the lease.

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

The amount the customer pays if they terminate the contract before the lease end date.

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

A charge based on miles driven over the amount contracted in the lease agreement on return of a vehicle.

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

The final vehicle rental transaction paid by the individual, company or firm leasing the vehicle within a finance agreement.

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

A finance agreement where the customer pays for use of a vehicle only and is responsible for the final payment; the funding company owns the vehicle at the end of contract.

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

A finance agreement where you pay for the full value of a vehicle via monthly payments and pay a balloon payment at the end of the contract. At the end of the contract you own the vehicle.

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

A term referring to the “use only” of a vehicle, by a customer entering into an agreement with a finance company.

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

The finance/leasing company or the legal owner of the vehicle who sets forth the lease terms.

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

The maximum number of miles a leased vehicle can be driven per year without incurring a penalty. Usually 10,000 12,000 15,000 or 20,000.

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

This refers to the vehicle price value when new, together with the additional cost of extras. The value is then used for taxation purposes by the Inland Revenue.

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).

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

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

The vehicle’s wholesale value at the end of the lease.

Road tax.