Glossary

Retail automotive terms, defined

243 terms, acronyms and measures used every day inside a dealership, each with its own page.

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11. Accounting(Financial Statement and Metrics (126))
12. OEM(Franchise and Field Relations (66))
13. Marketing(Digital Retail and BDC (100))
14. Technology(DMS and Data (80))
15. Titling(Registration and Documentation (44))
16. Regulatory(Legal and Compliance (81))
17. M&A(Valuation and Capital Markets (73))
18. Industry Organizations(Data Providers and Events (52))
19. Vehicle(Product and Powertrain Terms (75))
20. EV(Mobility and Emerging Retail Models (57))
21. Personnel(Compensation and Culture (62))
22. Powersports(RV Commercial and Adjacent Retail (35))
240V charging(typical for home and dealership.)
3. New Vehicle Sales(Pricing and OEM Programs (88))
4. Used Vehicle Operations(Appraisal and Remarketing (98))
5. Desking(Deal Structure and Finance Math (116))
6. F&I Products(Protection and Reinsurance (78))

A

Accessibility Compliance [Term(ADA Website Compliance])
Accounts Payable [Acronym(AP])
Accounts Receivable [Acronym(AR])
Acquisition Fee [Term(Bank Fee])
Acquisition Fee (Lender) [Term(Bank Fee Discount Fee])
Actual Cash Value [Acronym(ACV])
Actual Photos [Term(Real Photos])
Adaptive Cruise Control [Acronym(ACC])
Added VSC cost for higher risk vehicles (turbo(4WD diesel luxury).)
Addendum [Term(Supplemental Sticker])
Additional Dealer Profit [Term(ADP])
Additional OEM consumer incentive(often stackable with other offers.)
Adjusted Capitalized Cost [Term(Net Cap Cost])
Adjusted Earnings [Term(Normalized Earnings])
Administrator [Term(Admin])
Ads featuring specific prices(payments or rates; subject to disclosure rules.)
Advanced Driver Assistance Systems [Acronym(ADAS])
Advanced Driver Assistance Systems Calibration [Acronym(ADAS Calibration])
Advertising per Unit [Metric(Ad Cost per Unit])
Advisory firms serving dealer operations(including DGS.)
Aftermarket(recycled or reman parts used in place of new OEM.)
Aftermarket equipment added to commercial vehicles (racks(boxes lifts).)
Agentic AI [Term(AI Agent])
AI handling phone(chat and text conversations with customers.)
AI model generating text; used in chat(BDC and analysis tools.)
AI systems that take actions (set appointments(follow up leads) rather than only respond.)
AIM(AIM is an acronym for Active Inventory Management. While most dealerships tend to exercise passive management of their inventory, meaning their new and used car inventory tends to exist without active oversight, active inventory management requires sales or inventory managers to play an active role in optimizing new or used car inventory daily. For example, to optimize a new car inventory list, one way of doing this is through intelligent dealer trades to ensure that every time a trade is made, the vehicle you receive in return has a significantly better financial outcome than the car you relieved from your inventory. For used cars, it's ensuring that every used car in stock is priced intelligently, not to maximize gross per unit, but to maximize the sales turn rate for the department. The faster the turn rate, the lower the cost to sell a vehicle while simultaneously maximizing the impact on net profit.)
All company(product and brand names referenced are the property of their respective owners and are)
All units ordered(scheduled built or in transit for a dealer.)
All-Terrain Vehicle [Acronym(ATV])
All-Wheel Drive [Acronym(AWD])
Also called Business Manager; structures financing(presents protection products and completes)
American International Automobile Dealers Association [Acronym(AIADA])
American Truck Dealers [Acronym(ATD])
Americans with Disabilities Act [Acronym(ADA])
Amount financed divided by vehicle value (invoice(MSRP or book); a lender advance guideline.)
Amount shown to the customer for the trade(which may differ from ACV.)
Amount the lender will finance relative to value; front-end advance covers the vehicle(back-end)
Amounts owed by the OEM for incentives(holdback warranty and rebates.)
Amounts owed to the dealer(CIT warranty factory parts wholesale service.)
An exhausting(drawn-out negotiation.)
Annual award recognizing dealer excellence and community service(presented at NADA Show.)
Annual Percentage Rate [Acronym(APR])
Anti-Money Laundering [Acronym(AML])
Any title carrying a permanent notation (salvage(flood lemon rebuilt).)
Appearance Protection [Term(Paint and Fabric])
Application Programming Interface [Acronym(API])
Appointment setter working phones(texts chat and email in the BDC.)
APR Subvention [Term(Subvented Rate])
Area of Responsibility [Acronym(AOR])
Artificial Intelligence [Acronym(AI])
assessment. Where an entry describes a regulation(tax provision benchmark or vendor relationship)
Asset Purchase Agreement [Acronym(APA])
Assigning acquisition price to assets(liabilities and goodwill.)
Auction lane light system(green is arbitratable yellow is announced conditions red is as-is.)
Auction list of units scheduled to sell(in lane order.)
Auto Group [Term(Dealer Group])
Automatic(manual CVT or dual-clutch gearbox.)
Automatic Emergency Braking [Acronym(AEB])
Autonomous Vehicle [Acronym(AV])
Average review score on Google(DealerRater Yelp and others.)
Average Transaction Price [Acronym(ATP])

B

Back-End Gross [Metric(Back Gross])
Bank(credit union or independent finance company.)
Bank Secrecy Act [Acronym(BSA])
Battery Electric Vehicle [Acronym(BEV])
BDC Agent [Term(BDR])
benchmark(or threshold varies by OEM lender state or data provider the entry says so. Verify)
Biller [Term(Deal Clerk])
Blind Spot Monitoring [Acronym(BSM])
Block [Term(On the Block])
Body Shop Manager [Term(Collision Center Manager])
Borrowers between prime and subprime(roughly FICO 620 to 659 (definitions vary).)
Borrowers with impaired credit(commonly FICO below 620 (definitions vary).)
Borrowers with severely impaired credit(commonly FICO below 580 (definitions vary).)
Borrowers with strong credit(commonly FICO 660 or above (definitions vary by lender and data)
Build to Order [Term(BTO])
Bumper-to-Bumper [Term(Basic Warranty])
Bundle [Term(Bundled Product])
Bureau of Labor Statistics [Acronym(BLS])
Business Development Center [Term(BDC])
Business Intelligence [Acronym(BI])
Buy Here Pay Here [Term(BHPH])
Buyer demand for a franchise(driving multiples.)
Buyer investigation of financials(operations legal and environmental matters.)
Buyer's Order [Term(Purchase Agreement])
Buyers Guide [Term(FTC Used Car Rule])
Buyout [Term(Purchase Option])

C

C Tech [Term(Lube Tech])
Cadence [Term(Follow-Up Cadence])
California Consumer Privacy Act [Acronym(CCPA])
Camera and sensor safety features (lane keeping(adaptive cruise automatic braking).)
Campaign [Term(Service Campaign])
Capitalization Rate [Acronym(Cap Rate])
Capitalized Cost [Term(Cap Cost])
Capitalized Cost Reduction [Term(Cap Cost Reduction Cap Reduction])
Captive Lender [Term(Captive])
Carvana(CarMax online and others selling used vehicles digitally.)
Center for Automotive Research [Acronym(CAR])
Certified Aftermarket [Term(CAPA])
Certified Pre-Owned [Acronym(CPO])
Certified Public Accountant [Acronym(CPA])
Charge for paint and materials(often calculated per refinish hour.)
Chatbot [Term(AI Assistant])
Chief Financial Officer [Term(CFO])
Chief Operating Officer [Term(COO])
Clean(Average Rough [Term])
Clean Vehicle Credit [Term(Section 30D])
Clock Hours [Term(Actual Hours])
Closed Sale [Term(Factory Sale])
Collision Center [Term(Body Shop])
Combined Charging System [Acronym(CCS])
Combined labor(parts paint and sublet gross.)
Combining OEM(federal state and utility incentives.)
Comeback [Term(Rework])
Commercial Clean Vehicle Credit [Term(Section 45W])
Commissions(spiffs and delivery costs.)
Comp typically tied to gross(fill rate and obsolescence.)
Company managing corporate fleets (Enterprise Fleet(Element Holman and others).)
Compensation on appointments set(shown and sold.)
Compliance Management System [Acronym(CMS])
Composite [Term(20 Group Composite])
Comprehensive factory warranty (commonly 3 years or 36(000 miles).)
Concern(Cause Correction [Term Three Cs])
Condition Report [Term(CR])
Conditional Delivery Agreement [Term(Spot Delivery Agreement])
Confidential Information Memorandum [Acronym(CIM])
Connected TV [Acronym(CTV])
Connection between systems (CRM to DMS(DR to CRM).)
Consolidator (Collision) [Term(MSO])
Consumer credit reporting agency(Equifax Experian TransUnion.)
Consumer Financial Protection Bureau [Acronym(CFPB])
Consumer Leasing Act [Acronym(CLA])
Consumer Leasing Act (Compliance) [Acronym(CLA])
Consumer research firm; CSI(SSI IQS and valuation data.)
Continuously Variable Transmission [Acronym(CVT])
Contract governing dealer assignment of contracts to a lender(including recourse and chargeback)
Contract to use a vehicle for a term in exchange for payments(with the lessor retaining)
Contracts in Transit [Acronym(CIT])
Controlled Foreign Corporation [Acronym(CFC])
Core operating system for accounting(sales F&I service and parts.)
Corporate Average Fuel Economy [Acronym(CAFE])
Cosigner [Term(Co-Buyer])
Cost of Sales [Term(COS])
Cost per Acquisition [Acronym(CPA])
Cost per Lead [Metric(CPL])
Cost per Sale [Metric(CPS])
Counteroffer [Term(Counter])
Courtesy Transportation Program [Term(CTP])
Credit Accident and Health [Term(Credit A&H Credit Disability])
Credit application(e-contracting and registration platform (Cox Automotive).)
Credit Application [Term(Credit App])
Credit Tier [Term(Tier])
Credit Union Indirect [Term(CUDL])
Crossover Utility Vehicle [Acronym(CUV])
Cure Letter [Term(Notice of Default])
Customer Cash [Term(Rebate])
Customer Data Platform [Acronym(CDP])
Customer Experience [Acronym(CX])
Customer Pay [Acronym(CP])
Customer Relationship Management [Acronym(CRM])
Customer Satisfaction Index [Acronym(CSI])
Customer share per VSC claim (commonly $0($100 $200).)
Customer termination of a product(triggering a refund and commission chargeback.)
Customer who wants everything for nothing; derogatory(never for customer-facing use.)
Customer with very poor credit; derogatory(never for customer-facing use.)
Customer-facing service seller who writes ROs(sells recommended work and communicates status.)
Cycle Time [Metric(Keys to Keys])

D

Daily cost of floor plan interest(depreciation and overhead per unit in stock.)
Daily manager meeting reviewing pending(unsold and at-risk deals.)
Daily Operating Control [Acronym(DOC])
Daily report tracking units(gross and key metrics against forecast (context distinguishes from)
Daily Selling Rate [Acronym(DSR])
Date the first installment is due(commonly 30 to 45 days after contract.)
Date warranty coverage begins(set at RDR.)
Days in Stock [Metric(Age])
Days Sales Outstanding [Acronym(DSO])
DC Fast Charging [Term(DCFC Level 3])
Deal delivered on the spot(same day.)
Deal or prospect a salesperson keeps to themselves(off the CRM.)
Deal Recap [Term(Recap Sheet])
Deal that fell apart(usually over financing.)
Deal with thousands in gross; a five-pounder is roughly $5(000 gross.)
Dealer Advertising Association [Term(DAA LMA (Local Marketing Association)])
Dealer Agreement [Term(Sales and Service Agreement SSA])
Dealer Communication [Term(Dealer Letter])
Dealer Compensation [Term(Dealer Salary])
Dealer Installed Accessory [Acronym(DIO DIA])
Dealer Management System [Acronym(DMS])
Dealer Principal [Term(DP])
Dealer Reserve [Term(Rate Participation Finance Reserve])
Dealer retail sales relative to market opportunity(used by some OEMs.)
Dealer Trade [Term(Swap])
Dealer transferring a title without titling in its own name(where permitted.)
Dealer Visit [Term(Contact Report])
Dealer-added label listing accessories(protection products or market adjustments.)
Dealer-Owned Warranty Company [Acronym(DOWC])
Dealer's true cost after invoice(holdback and all dealer incentives.)
Dealership property(purchased or leased separately from operations.)
Debt-to-Income [Acronym(DTI])
Decline [Term(Turndown])
Deferred Down Payment [Term(Pickup Payment])
Demo [Term(Demonstration Drive])
Demonstrator [Term(Demo Unit])
Department of Motor Vehicles [Acronym(DMV])
Department repairing collision damage(paint and structure.)
Depreciation plus rent charge divided by term(before tax.)
Desk [Term(The Desk The Tower])
Desks deals(manages the floor team and controls gross on the showroom floor.)
Destination Charge [Term(Freight])
Detail ledger for a control account (vehicle inventory(receivables payables) reconciled)
Device disabling or locating the vehicle on default(used in BHPH.)
DGS document defining a department manager's role(metrics and cadence.)
diagnosis(labor and parts.)
Diagnostic Fee [Term(Diag])
Diagnostic Trouble Code [Acronym(DTC])
Digital Auction [Term(Online Wholesale])
Digital Retailing [Acronym(DR])
Digital wholesale marketplace(formerly KAR Global.)
Direct Repair Program [Acronym(DRP])
Direct Sales [Term(Direct to Consumer DTC])
Disclosure [Term(Disclaimer])
Disruptive Growth Solutions [Vendor(DGS])
distributed(published or disclosed to any third party without the prior written consent of DGS.)
District Manager [Term(DM District Sales Manager])
Do Not Call List [Acronym(DNC])

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