Glossary

Application Fee (also called doc fee)
An administration charge, often levied by finance companies, payable on signing of a finance agreement.

APR
Annual Percentage Rate - The true rate of interest you are paying on a finance agreement.

Balloon Payment
The final payment of a finance agreement.

Depreciation
The reduction in value of a vehicle caused by age, mileage and condition.

GMFV
Guaranteed Minimum Future Value also called GFV – Guaranteed Future Value

P11D Value
The value of the vehicle, being the price when new together with the cost of extras such as metallic paint or leather. This value is used by the Inland Revenue for taxation purposes.

RFL
Road Fund Licence