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Terminology Description
AIA Annual Investment Allowance.
Balloon Payment Final payment to be made on a particular type of finance agreement
BVRLA British Vehicle & Rental Leasing Association
Early Settlement Ending your agreement early and paying any outstanding fees
Equity The value in the vehicle after all fees have been made
Excess Mileage Miles in the vehicle over that agreed as part of your contract
Fair Wear and Tear The accepted condition of a vehicle as a result of normal use as defined by the BVRLA
Finance Lease Also known as Van Leasing
Funder The finance company
HP Hire Purchase.
Optional Final Payment Final payment due at the end of a Contract Purchase agreement
Peppercorn Rental Alternative terminology for Secondary Rental Period
Rental The monthly payment as agreed with the finance company
Residual Value The vehicle's estimated future value based on certain criteria, such as age, condition and mileage
Secondary Rental Period A requirement in order to keep the vehicle past the original agreed term on Finance Lease
Term The period of the finance agreement
Title Owner of the vehicle
Van Leasing Also known as Finance Lease