F - Car Finance Glossary

• Home
• Mortgages
• Cards
• Loans
• Investments
• Banking
• Pensions
• Insurance

F

Flat rate
Flat rate is the monthly interest rate. Lenders and finance providers may quote the flat rate instead of the APR because it sounds cheaper… be aware.

Finance Lease
A Finance Lease is another method of repayment, whereby monthly rental is determined by how much the vehicle costs, how long the lease runs for, and how much (estimated) the car will be worth in the future based on proposed annual mileage.

Fixed rate
Fixed rate means a loan on which monthly repayments are fixed. They will not fluctuate in line with normal interest rates.

Forecourt finance
Forecourt finance may be offered by car dealers as and when you purchase a car. However, the rates offered are rarely the best on the whole market, and it is always worth shopping around for car finance to find the best deal… or having someone else shop around for you!