3 + 35
The number of initial payments payable by way of deposit followed by the number of payments to be made.

Application Fee
An initial fee, 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 finace agreement.

Balloon Payment
The final payment of a finance agreement.

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

GAP Insurance
Insurance covering losses arising as a result of the amount payable by insurers in the event of a write-off being insufficient to clear the outstanding finance.

GMFV
Guaranteed Minimum Future Value

MRP
Manufacturers Recommended Price Residual Value The value of the vehicle at the end of the agreement, normally estimated at the beginning of any agreement.

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

PPM
Pence per mile

RFL
Road Fund Licence

SMR
Service, Maintenance and Repair.

With Maintenance
The element within a finance agreement which covers servicing, repairs and tyre replacement.

WLC
Whole Life Cost - The total cost, including depreciation, servicing, fuel etc., incurred in running a vehicle for a defined period of time.