Glossary of terms relating to the Car Finance industry.

Base Rate expressed as Per annum flat (PAF)
Difference in Charges (DIC) Difference in Charges is a mechanism to calculate commission paid to dealers or brokers and is the difference between the lender base rate and the customer rate.
GFV One-off ‘balloon’ payment at the end of a PCP agreement.
Lenders Independent lenders offering finance through the dealers and brokers to end customers.
PCP  Personal Contract Purchase.
PCH Personal Contract Hire.
Dealers Contains large dealer groups, individual dealerships, independent motor dealers all retailing new or used cars.
Brokers Includes motor finance brokers dealing predominantly in the motor sector and introduce new business to lenders.
FCA Financial Conduct Authority (UK Financial Services regulator)
AM Automotive Manufacturer Finance Companies
Lenders These are independent lenders offering finance through the dealers and brokers to the consumers.
PoS Point of Sale motor finance sold to the consumer at the dealers.
HP Hire Purchase Agreement
VB Volume Bonus which is additional commission paid to the dealer above the DIC commission.