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An acceptance fee is charged by a lender when setting up a loan or car finance agreement.
An administration fee is charged by either a finance lender or dealership which covers the administration costs of taking out a loan or purchasing a vehicle.
Annual mileage refers to the number of miles you drive each year. Car finance companies may sometimes ask for this depending on the type of car finance you are taking out.
APR is the annual cost of borrowing money for car finance. It includes the interest rate and any additional fees, giving a comprehensive view of the loan’s cost.
Approved dealers are those who have been checked and authorised by a finance company or lender to sell cars with finance options.
In car finance, if you miss a scheduled payment, you are said to be “in arrears” meaning you have failed to make a payment on time.
Bad credit refers to a low credit score resulting from missed payments, defaults, or other negative credit history, making it harder to get approved for car finance.
A large, final payment at the end of a finance agreement, typically found in lease or PCP (Personal Contract Purchase) agreements.
A separate agreement in electric car finance where you lease the car’s battery rather than owning it, often reducing the car’s upfront cost.
A Battery Management System is a component within electric vehicles which monitors, manages and protects the battery to ensure safe and efficient operation and charging.
A type of EV charging that charges the car’s battery whilst storing and supplying power to other electronic devices.
A way of borrowing money to fund the purchase of a new or used car.
A middleman who arranges car finance deals between borrowers and lenders.
CHAdeMO is a type of rapid electric car charger used by most Japanese car manufacturers.
Combined Charging System (CCS) is a type of rapid electric car charger and is most commonly found in Europe and North America.
A type of car finance agreement which can be used to spread the cost of both new and used cars.
A law which covers most types of lending in the UK including some car financial agreements.
EU regulations that are designed to standardise credit information and protect consumers in financial agreements.
A set time period after signing a finance agreement during which the borrower can cancel without penalty.
The total cost of borrowing, including interest and fees, over the life of the entire loan.
A legal decision against someone who has failed to repay a debt, which negatively impacts credit ratings.
A system which lenders use to share and access information on borrowers’ credit accounts.
A legal contract between a borrower and a lender which sets out the terms of the car finance.
A record of your borrowing and repayment activities, used by lenders to assess creditworthiness when applying different types of finance.
A company that provides credit or loans to borrowers.
Organisations that collect and provide information on individuals’ credit histories to lenders.
A detailed report of your financial transactions and history which is used by lenders to make lending decisions.
A numerical score based on an individual’s credit history which is used by lenders such as car finance companies to assess your eligibility for finance.
A check that is performed by a lender to assess an individual’s creditworthiness based on their credit report.
A regular payment made towards repaying a loan or car finance agreement.
Checks that are performed by lenders to assess a borrower’s creditworthiness, determining the likelihood of repayment and influencing loan terms and interest rates offered.
A type of car finance which is arranged directly through the dealership, often involving partnerships with specific lenders.
An arrangement between a borrower and creditors to repay debts in a more manageable way, usually with reduced payments.
A failure to meet the legal obligations or conditions of a loan, typically by missing payments.
An electric car motor is a crucial component in electric vehicles which converts electricity stored in the vehicle’s battery into energy which powers the wheels.
An electric vehicle (EV) chargepoint refers to the infrastructure used to charge all types of electric vehicles.
Electric vehicle incentives are monetary benefits given by the government, local councils and employers to make owning and driving an electric vehicle cheaper.
The distance an electric car can travel when fully charged.
The charging infrastructure, including chargers and connectors, that is used to deliver electrical energy from the power source to the electric vehicle.
Charging an electric vehicle at stations along the route during a journey, typically using fast, rapid or ultra-rapid chargers.
The control and distribution of electrical power to ensure stability and efficiency, which optimises EV charging and reduces the burden on the national grid.
Charging an electric vehicle at a high power level, typically between 7kW and 22kW, to quickly recharge the battery.
A type of car finance where a third party, known as the guarantor, agrees to take on the responsibility of repaying the loan if the primary borrower cannot make the payments.
Charging an electric vehicle at a residential property, usually using Type 1 or Type 2 chargers.
A check which looks into a car’s history and confirms the details and legitimacy before a used car is purchased.
A credit agreement payed at the agreed amount in monthly installments.
When an internal combustion engine (ICE) vehicle parks in a space designated for electric vehicle charging, blocking access.
A unit of power representing the rate of energy transfer used to describe the power output of chargers and electric motors.
A unit of energy representing the amount of power consumed over time, commonly used to measure electric car battery capacity.
A summary document outlining important details of a financial product or agreement such as car insurance.
A type of rechargeable battery commonly used in electric vehicles due to its high energy density and efficiency.
A secured loan using the vehicle’s logbook (registration document) as collateral.
The leasing company or financial provider owns the vehicle and leases it to a customer for a fixed term.
A company that provides funds to borrowers to purchase a car with the expectation of repayment plus interest.
Renting a vehicle for a fixed term and mileage in exchange for regular payments.
A financing option combining leasing with the option to buy the vehicle at the end of the lease term.
The amount paid each month towards a loan or car finance agreement.
An old test used to assess vehicle performance, including fuel economy, emissions and electric power consumption of hybrid and fully electric vehicles.
When the outstanding loan balance exceeds the current market value of the vehicle.
A charger built into the electric vehicle that converts AC power from electrical outlets to DC power to charge the battery.
Charging an electric vehicle using chargers located on private property, such as driveways, garages or dedicated parking areas.
Charging an electric vehicle using chargers located on public streets, typically provided by local councils or private companies.
The amount of money still owed on your car finance agreement.
When you pay more than the scheduled payment amount to reduce the balance of the loan or the length of the car finance agreement.
A final payment at the end of a lease or finance agreement which allows the customer to take ownership of the vehicle.
The total cost of a vehicle, including taxes, registration, and other fees, that makes it ready for use on public roads.
Trading in an old vehicle as part of the payment towards a new vehicle.
The fear that an electric vehicle will run out of battery power before reaching a charging station.
The estimated number of miles added to an electric vehicle’s battery per hour of charging.
Charging an electric vehicle at very high power levels (typically above 50 kW) to add significant range in a short time.
A system that recovers energy when an electric car brakes and feeds it back into the battery which extends the electric vehicle’s range.
Cards that use Radio Frequency Identification (RFID) technology to authenticate and start charging sessions at EV charging stations.
Charging an electric vehicle for short periods to maintain battery levels rather than waiting for it to deplete significantly.
Charging an electric vehicle at a very low power level, typically using a standard household outlet, for long durations.
A five-pin connector that’s usually found in older EVs, first-generation models and some plug-in hybrids (PHEVs).
An EV charging connector commonly used in Europe for AC charging which delivers speeds of up to 43kW.
A system where electric vehicles can return stored energy to the grid, helping balance demand and supply, and supporting grid stability.
An interest rate that can change over the term of the car finance agreement, based on market conditions.
When a borrower returns the car to the lender whilst it still has an outstanding balance that they are unable to pay.
Ending a finance agreement early by returning the vehicle and paying any outstanding amounts, as allowed under certain conditions.
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