caruno

Jargon Buster

Car finance, like so many other things, comes with its own unique set of terms (or jargon if you prefer) that can often leave you scratching your head. At caruno we prioritise being simple, straightforward, and certain. This lets us offer a clear choice, the right way to pay and an easy road to driving the car you want. So, to help keep your car buying and leasing journey as transparent as possible, here’s a handy A-Z guide on car finance jargon…

Agreement

Amount of credit

Annual mileage

APR (Annual Percentage Rate)

Balloon payment

Credit score

Deposit

Depreciation

Early settlement

Equity

Excess mileage charge

FCA (Financial Conduct Authority)

GAP insurance

Guaranteed Minimum Future Value

Hire Purchase (HP)

Interest rate

Part-ex

Personal Contract Hire (PCH)

Personal Contract Purchase (PCP)

Residual value

Settlement

Term

Total amount payable

Voluntary termination

Wear and tear