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Glossary

Cut through the jargon - this glossary breaks down motor trade terms into plain, practical language.

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    A    B    C    D      F    G    H      J      L    M    N    O    P    Q    R    S    T    U    V    W    X    Y    Z

A.

Agreement – A legally binding contract between the lender and borrower detailing payment schedules, interest, fees, and rights under UK consumer credit law.

ABS (Anti-lock Braking System) – Prevents wheels from locking during braking, improving control.

A-Pillar – The vertical support on either side of the windscreen; key to structural integrity and rollover protection.  

Adaptive Cruise Control – Uses radar or cameras to maintain distance from the vehicle ahead.

AdBlue – Diesel exhaust fluid used to reduce emissions in modern diesel engines.

Admin - The unsung heroes who do all the background stuff that sales executives hate.

Alloys – Lightweight metal wheels, often a selling point for style and performance.

Amount of Credit – The total sum of money lent to a customer under a finance agreement, excluding interest and fees.

Appraisal – The process of valuing a part-exchange vehicle.

APR (Annual Percentage Rate) – The annual rate showing the total cost of borrowing, including interest and all scheduled fees.  

Arrears – Amounts unpaid past their due date in a finance contract, signalling late‐payment status.

Asking Price – The advertised price before negotiation.

Authorised Dealer – A franchise or independent dealer officially approved by a manufacturer.

B.

BAS (Brake Assist System) – Automatically boosts braking power during emergencies to shorten stopping distance.

BEV (Battery Electric Vehicle) – A fully electric car powered by rechargeable battery packs. 

Bi-Xenon Headlamps – Headlights that use a single bulb for both high and low beams via a movable shutter. 

Blind Spot Monitor – Sensors that detect vehicles in areas not visible in side mirrors. 

B-Pillar – Upright support between front and rear doors, housing seatbelt mounts and side-impact beams. 

Balloon Payment – A large final payment at the end of a PCP or lease agreement.

Base Rate – The interest rate set by a lender before any adjustments or margins.

BM (Business Manager) - Looks after Finance, Insurance etc

Book Value – The estimated market value of a vehicle, often used in part exchange valuations.

Bums on Seats (Sells Cars) - Try it before you buy it, customers are more likely to buy if they have driven it.

Broker – A specialist intermediary who sources and negotiates finance deals between the borrower and the lender.

Burnt/Burned - Not qualifying customers correctly and the customer vanishes faster than cookies in the sales office.

C.

CAP / Glass's - Trade guides often used to value used cars.

CCA (Consumer Credit Act 1974) – UK legislation protecting consumers in credit agreements by enforcing transparency and granting rights like withdrawal periods. 

CCJ (County Court Judgment) – A court order issued when a borrower fails to repay debts; it remains on their record for six years and damages creditworthiness.  

C-Pillar – The vertical support between the rear side window and the rear window.  

Catalytic Converter – An emissions-control device that converts harmful exhaust gases into less harmful substances through a chemical reaction.

Captive Finance Company – A lending arm owned by a manufacturer (e.g., Ford Credit) providing finance packages specific to that brand.

Closer – A salesperson renowned for consistently sealing deals.

Cooling-Off Period – The mandated 14-day window under the Consumer Credit Act during which a borrower can rescind a credit agreement without penalty.

Cold Call – An unsolicited outbound call to a prospect with whom no prior contact exists.

Cut-and-Shut – Two written-off cars welded together; best avoided.

D.

Deal Prevention Officer - See Admin. Colloquial term used when admin stop the sales team from cutting corners.

Deposit Contribution - A financial incentive when you take a lenders finance deal. They put money towards the deposit lowering your upfront cost but tying you to the finance terms.

Depreciation - The amount your car falls in value due to age, mileage, wear and tear and VAT. 

DP/HoB (Dealer Principal/Head of Business) - The boss.

Ducks on the Pond - Customers on the sales pitch.

DPF (Diesel Particulate Filter) – Device that traps soot from diesel exhaust.

E.

Expensive car supplement – sometimes called the 'luxury car tax' is an additional annual tax on cars over £40,000 (payable from 1 year old to 6 years old).

Equity – Positive or negative difference between a vehicle’s value and its outstanding finance.

Emission Standard – Regulatory limit on exhaust pollutants (e.g. Euro 6).

F.

F&I (Finance & Insurance) – Department handling customer finance packages and add-on products.

Fair Wear & Tear – Acceptable level of damage on leased vehicles at return.

FCA (Financial Conduct Authority) - The independent body responsible for regulating finance agreements in the UK.

FLA (Finance and Leasing Association) - A finance trade body promoting responsible lending, regulatory standards and professional development across the industry.

Flipper – Dealer or buyer who turns vehicles quickly for small profits.

G.

GAP Insurance – Guaranteed Asset Protection insurance covering the shortfall between a car’s insurance payout and the outstanding finance balance if the vehicle is written off or stolen.

H.

HP (Hire Purchase) – A finance arrangement where the customer pays fixed monthly instalments and acquires ownership of the vehicle at the end of the term.

HPI Check – Vehicle history report revealing finance flags, mileage discrepancies, and write-offs.

I.

Immobiliser – Security system preventing engine start without the correct electronic key.

Incentive – Manufacturer or dealer discount to drive sales of specific models.

ISOFIX – Standardised anchors and tethers for child seats.

J.

Jump Leads – Cables used to jump-start a flat battery from another vehicle.

Jam Jar – Informal slang for any car; often older or well-used.

K.

KPI (Key Performance Indicator) – Metric used to assess a sales executive's or department's performance.

Kerb Weight – Vehicle mass with standard equipment and fluids, without passengers or cargo.

L.

Luxury Car Tax - see Expensive Car Supplement.

Lender – Finance provider underwriting the customer’s loan or lease.

M.

MoT (Ministry of Transport Test) – Annual safety and emissions inspection for UK cars over three years old.

Motability Scheme -  a scheme allowing eligible disabled people to lease a new car, scooter, or powered wheelchair using their mobility allowance, with insurance, servicing, and breakdown cover included.

Minter – Immaculate, showroom-fresh vehicle in pristine condition.

Mild Hybrid (MHEV) - a car that uses a small electric motor to support the petrol or diesel engine, helping improve fuel efficiency and reduce emissions without needing to be plugged in.

Metal – The collective fleet on the forecourt (“We’ve moved a lot of metal this month”).

N.

Negative Equity – Owing more on finance than the vehicle’s current market value.

No-Show – Customer who fails to attend a booked appointment or test drive.

NTU - Sales exec shorthand for a no show (Not Turned Up).

O.

OEM (Original Equipment Manufacturer) – Parts or accessories produced by the vehicle maker.

On the Hook – Sales Exec slang for a committed customer.

Over Allowance - Inflating the value of the Part Exchange to make the deal work.

Oversteer - When the rear of the car loses grip and starts trying to overtake the front.

P.

PCP (Personal Contract Purchase) – A popular finance option featuring lower monthly payments and an end-of-term balloon payment, with options to purchase, part-exchange, or return the vehicle.

PTP (Proposal to Purchase) – Usually shortened to 'Prop'. The initial finance application sent to lenders summarising the customer’s details and desired terms for pre-approval before contract paperwork.

Plug-in Hybrid Electric Vehicle (PHEV) - a car that combines a petrol or diesel engine with an electric motor and rechargeable battery, allowing it to drive on electric power alone for short distances before switching to fuel for longer range.

Part-Ex (Part Exchange) – Trading in a customer’s old car against the purchase price of a new one.

Paddle Shifters – Steering-wheel levers for manual gear changes in automatic cars.

Paint Protection - invisible coatings such as waxes or ceramics applied to car bodywork to guard against UV damage, bird lime and road grime.

Prep/Recon - vehicle preparation/reconditioning before sale such as paint/bodywork repairs, servicing, MOT's and cleaning.

Punter – Slang for a prospective or existing customer.

Q.

Quick Quote – Fast estimate of a vehicle’s price or finance terms.

Quarter Panel – Body section between the rear side door and the rear light cluster.

R.

Reg (Registration) Plate – Number plate; also shorthand for a car’s model year.

Residual Value - The value of your car after depreciation, often referred to in PCP agreements.

Rust Bucket – A vehicle with so much corrosion it looks like a rolling scrap heap. If you still use this you're getting on a bit.

Regenerative Braking – EV and hybrid system capturing energy under deceleration.

S.

SAF (Specialised Automotive Finance) - A UK training standard launched by the FLA to boost professionalism and regulatory knowledge among dealership and finance staff.

Screamer - Angry customer who feels they aren't getting the standard of service they deserve. Sometimes justified sometimes not.

Settlement (Figure) - The payment amount required to cover all outstanding money owed to end a finance agreement.

Shed – Typically a battered, cheap and unreliable used car - barely roadworthy but still clinging to life.

Stickered Up – A car sporting lots of forecourt decals—“1 OWNER,” “LOW MILES,” “0% FINANCE.”

Slammed – A car with its suspension lowered or modified for an ultra-low stance.

T.

Test Drive Pilot - A customer who wants to test drive a specific car without much intention to purchase.

Time Waster – A lead who ghosts appointments or strings you along without a serious intent to buy despite repeated follow-ups.

TCO (Total Cost of Ownership) – Comprehensive cost covering purchase, finance, maintenance, fuel, and depreciation.

Tyre Kicker - Timewaster who won't buy. Often used by sales executives who haven't qualified properly.

U.

Upside Down – Colloquial for negative equity (owing more than the car’s worth).

Upsell – Offering a customer add on products such as Paint Protection or GAP insurance or a higher-spec model.

ULEZ (Ultra Low Emission Zone) - A London wide zone where driving a polluting vehicle incurs a daily charge. EV's are exempt.

Understeer – Handling characteristic where a car pushes wide in corners due to front-wheel slip.

Unit - 1 unit = 1 car. "How many units did you do last month?"

V.

VT (Voluntary Termination) – The right under a PCP or HP agreement to end the contract early after paying at least 50 percent of the total payable amount, as stipulated by the Consumer Credit Act.

VAT Margin Scheme – VAT method where tax is paid only on the dealer’s margin, not full sale price.

VED (Vehicle Excise Duty) – "Road Tax" annual tax for driving on UK roads.

VIN (Vehicle Identification Number) – Unique 17-character code for each vehicle.

W.

Wholesale Auction – Dealer-only event for buying and selling used stock.

Warranty – Manufacturer or dealer guarantee covering certain repairs under set conditions. 

Weak Money – Poor resale value in the used-car market.

Z.

ZEV (Zero-Emission Vehicle) – Car producing no tailpipe emissions (typically electric).

Zero-Deposit – Finance deal requiring no initial deposit from the buyer.

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