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A glossary of common Automotive industry terms and definitions.
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ACA (Affordable Care Act)
Accessories - Additional products the customer may add when purchasing a vehicle (i.e.Window Tint, Remote Start, Mats).
Accounts Payable - A liability on an open account to a creditor for purchasing merchandise and/or services.
Accounts Receivable - Claims for payment for goods supplied and services rendered that customers have ordered but not paid for.
Accrual (Accounting) - Estimated or actual amounts of income or expense and their related assets or liabilities, which are identifiable with the current period but which will not be recorded in the ordinary course of business until a subsequent period.
Accrual/Accrued (Payroll/PTO/Paid Leave) - Paid Leave an employee has earned. Maximum Accrued Hours are the total number of Paid Leave hours an employee can earn in a year.
ACH (Automatic Clearing House) - Electronic Payments delivered to an individual who has given an originating institution, corporation, or another customer (originator) authorization to debit directly from the customer's checking or savings account.
Acquisition Fee - An administrative fee charged by the leasing company at the start of a lease. The fee is charged as part of the lease application. (aka Bank Fee or Administration Fee)
ACV (Actual Cash Value) - The estimated wholesale value of an asset (usually a used vehicle) less the estimated cost of bringing the asset to a saleable condition.
Ad Source - Source (ex. billboard, website, social media, etc) showing how customers engaged with the store. Information is used to determine the most effective means of advertisement of the dealership and used to determine a marketing budget.
Allowance - The amount of money the dealership is giving the customer for their trade-in.
API (Application Programming Interface) - API is programming code that allows two programs to "talk" to each other and transmit information requested from one application to another. This is NOT a user interface. API works on the backend of database operations which allows coding to request information between applications.
Appointment - A scheduled agreement to meet a customer at a particular time.
APR (Annual Percentage Rate) - The average compound interest rate over the life of the loan. A yearly rate of interest that includes fees and costs paid to acquire a loan. Lenders are required by law to disclose the annual percentage rate, which is used to compare various loans; it makes simple interest and compound interest loans comparable with each other. Expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.
Assets - An account type that shows the resources owned by the company and which have future economic value that can be measured and can be expressed in dollars. Examples include cash, investments, accounts receivable, inventory, supplies, land, buildings, equipment, and vehicles.
ATPI (Agreement to Provide Insurance) - Terminology used in Sales and F&I for paperwork and process regarding customers providing insurance information for the sale or lease of a vehicle. Lenders require proof of insurance.
Back End - Profit made on the sale of financial products or the loan on a vehicle sale. Products sold in F&I, such as extended warranties, GAP, tire guard, etc, would also be considered back end.
Back Out of the Deal - To cancel a vehicle sale or lease like it never happened.
Balance Type - Determines the amount of information on each schedule that pulls over on a monthly basis.
Balloon Payment - A loan type that has a final installment that is much larger than the preceding ones in a term or installment note. The main difference between a lease and a balloon is the holder of the vehicle title. For a lease, the owner of the vehicle on the title is the financial institution (Most often the captive finance company). There is no lien. On a balloon contract, the customer is named on the title. A balloon customer has all the rights and responsibilities of a finance contract customer but with a payment more in line with a lease. Where a lease customer can "walk away" from a lease, a balloon customer is responsible for the final balloon amount similar to a residual. They can refinance it with the bank that wrote the balloon contract, finance the balloon amount with a different lender (credit union), or pay off the balloon with cash.
Bank Rate - The interest rate at which a nation's central bank lends money to domestic banks, often through very short-term loans. Managing the bank rate is a method by which central banks affect economic activity.
Base Price - The price of a vehicle without options. Includes standard equipment and factory warranty. This price is printed on the Monroney (window) sticker.
BDC (Business Development Center) - A separate dealership department that focuses on bringing in Sales and Service business. BDC Agents are responsible for making outbound calls to bring in new leads and managing inbound calls from leads.
Black Book - Black Book values are based on the selling price of like vehicles at auctions. The values listed in Black Book are more widely used to value a used vehicle than the other sources by dealerships. Black Book requires an account in order to see values. Kelly Blue Book is also available to consumers and tends to reflect a higher value that can be misread by a consumer.
Book Value - Banks use one of three sources to determine book values ie: the worth of a used vehicle: Black Book, KBB and/or NADA values. This is mostly based on the geographic location of the dealer. This information allows dealers to know the value of the trade-in vehicles and provides managers with a starting trade value when working on deals. Book value is also used by the lending institution to determine the maximum amount they will write the loan for on a finance deal. Typically a percentage of the MSRP on a new vehicle (up to 120% of MSRP) or the ACV of a used vehicle up to 80%.
Bureau (Credit) - A credit bureau tracks the credit history of borrowers in order to generate credit reports and credit scores. Financial companies buy this information to help them determine the credit risk of their customers and make decisions about extending them credit. The leading U.S. credit bureaus include Fair Isaac Corp. (FICO), Equifax, Experian, and TransUnion.
Buyback - A vehicle that the manufacturer bought back, usually because it was a lemon, and then was resold, often through a car dealer auction where it can be recycled back into the marketplace, often without disclosure of its true history of defects.
Buy Rate - This is the interest rate that banks or financing institutions will charge on all contracts being financed. It is a secret number between the lender and the dealer, which is the real amount of the interest rate that the loan starts out at before the dealer increases it for its own extra profit.
Cap Tax - Tax on the Capitalized Cost Reduction.
Capitalize / Capitalized Cost - The amount of the car's value actually being financed during the term of a lease. When modified by any rebates, incentives or discounts, it is called the Net Cap Cost or Adjusted Capitalized Cost.
CCR (Cap Cost Reduction) - Cap Reduction. Monies put down to lower the amount to lease.
Chargeback - An amount charged back to the dealership by finance or insurance companies due to the cancellation or early retirement of a finance or insurance agreement with a customer.
Chart of Accounts - The structural foundation of an accounting system, establishing the classifications under which transactions are reported. Vital as a guide to accounting uniformity and providing an organized system. Accounts are number-coded as a memory aid, a time-saver, and to facilitate machine accounting.
CIT (Contract in Transit) - Finance contracts signed by the prospect and submitted by the dealer to the lender for funding. (i.e. payment on a vehicle sale or lease not yet received from the lender).
Clearing Account - An account used to record a series of transactions, the resulting balance of which is transferred to one or more accounts.
Clock Hours - Labor time from when the Technician clocks in on an operation to the time they clock out of the operation.
Co-Buyer - Someone added to an auto loan along with the primary borrower. The co-buyer holds the same rights and responsibilities as the primary borrower on that loan. The co-buyer is often added to obtain approval on a loan. (aka Co-Signer or Co-Borrower)
Commission Cost of Sale - Sales commissions are considered to be operating expenses and are presented on the income statement as SG&A expenses. Sales commissions are not part of the cost of a product. Therefore, sales commissions are not assigned to the cost of goods held in inventory or to the cost of goods sold.
Commissionable Gross - Also called Gross Payable. The portion of the profit from the sale of a vehicle that is used to calculate a salesperson's commission. The figure is derived from the total selling price, accessories, and dealer options less the dealer's cost in the vehicle and any other non-commissionable items (i.e., pack, adjustments, repair orders, etc.).
Confirmed Appointment - A scheduled appointment that has been updated to Confirmed. The customer has affirmed that they are still coming to the dealership at the set time.
Contract in Transit - Finance contracts signed by the prospect and submitted by the dealer to the lender for funding. (i.e. payment on a vehicle sale or lease not yet received from the lender).
Contract Rate - The rate that is offered by the dealer to the customer on the contract. The rate the dealer offers the customer is called the contract rate. (buy rate + participation)
Control - A summary account that shows totals of entries and balances that appear in individual accounts in a subsidiary ledger. Accounts Receivable is a control account backed up with accounts for each customer.
Core Parts - Parts that still have value when they are taken off a vehicle during repairs. Dealerships can return core parts to the manufacturer and receive a rebate for their return. Many of these parts can be refurbished into new parts.
Cost of Sale - A vehicle's base inventory value at which the dealership could sell it without profit. The base cost the dealer must collect to break even on a sale. This value may be calculated differently from one dealership to another.
Create - In the acronym C.R.U.D. the C stands for Create. This Permission empowers the user to add new records in VUE.
Credit Bureau - A credit bureau tracks the credit history of borrowers in order to generate credit reports and credit scores. Financial companies buy this information to help them determine the credit risk of their customers and make decisions about extending them credit. The leading U.S. credit bureaus include Fair Isaac Corp. (FICO), Equifax, Experian, and TransUnion.
CRM (Customer Relations Management) - Software programs used to store and manage customer contact information. Dealerships use CRMs to track prospecting clients looking to purchase a car. The CRM typically has an automated follow-up procedure (emails, texts, reminders to the salesperson to call the customer. The best practice for a dealership is for the CRM data to push into the DMS to remove duplication of information entry into both applications. Some CRMs have their own marketing functionality and include a deal pencil function in the application.
CRUD - In VUE, this is an acronym in Permissions and Roles for Create, Read, Update, and Delete.
Customer - An individual who has shown or is showing interest in or has purchased a product/service and is listed in the DMS.
Days in Stock - The number of days a vehicle has been in the dealer's inventory.
DCS - Dealership Communication System
DDS (Dominion Dealer Solutions) or Dominion - Automotive software product division of Dominion Enterprises
DDU (Dominion Dealer University) - Learning center used by DDS customers to access training videos, guides, and additional training resources for VUE.
Deal - An agreement entered into by the customer and the dealership for their mutual benefit.
Deal Jacket - Dealer Record Envelopes used by auto dealerships to store all of the pertinent paperwork related to the sale or service of a vehicle.
Dealer Cash - An incentive paid to a dealer by a manufacturer for selling a certain model. The incentive is meant to encourage dealers to offer that model at a lower price, thus stimulating sales. The dealership can choose to keep this or pass it along to the customer.
Dealer Loan Fee - Fee charged to the dealership by a lender for funding a non-lease finance deal.
Dealer Reserve - An amount given as a commission or payment to a dealer as compensation for generating the loan. The commission or "dealer reserve" can be computed by a number of different methods.
Dealer Trade - Exchange or sale of new vehicle(s) between dealerships representing the same manufacturer.
DealerSource - Resource for Dealers to purchase remarketed vehicles, whether they are Used, CPO, Company Cars, or Rentals.
Default PR End Date - The last day of the Pay Period.
Delete - In the acronym C.R.U.D. the D stands for Delete. This Permission authorizes the removal of records from VUE.
Demo (Demonstrator) - A vehicle used by the dealership owner, manager, or sales staff. Demos may or may not be titled.
Deposit - Monies given to the dealership to "hold" a vehicle for purchase. The option to refund or not depends on the dealership's business practices.
Depreciation - The decline in the value of assets. The value of an asset over its useful life. The gradual and permanent decrease in the economic value of an asset.
Desking or Desking a Deal - The process of presenting options to a customer in order to come to an agreement on the selling price, monthly payment, and financing terms for the vehicle purchase.
Desking Manager - Normally, a Sales Manager that assembles the deal and determines what offer the dealership will make to a customer. He/She is in charge of all financial aspects of every deal and is charged with the responsibility of maximizing the dealer's profit.
Disposition Fee - Fee charged by the leasing company to clean and repair any minor damage on a vehicle for better resale value. (aka reconditioning fee)
DL (Driver's License) - A permit issued by a state's motor vehicle bureau that allows the holder to drive a motor vehicle on public roads. The driver's license is commonly used as personal identification. A copy of the DL is required for deals and can be stored within VUE.
DLR Cash (Dealer Cash) - An incentive paid to a dealer by a manufacturer for selling a certain model. The incentive is meant to encourage dealers to offer that model at a lower price, thus stimulating sales. The dealership can choose to keep this or pass it along to the customer.
DMS (Dealer Management System) - A widely used acronym in the auto industry that stands for Dealer Management System. A DMS is traditionally known as a software platform used by dealers for managing their vehicle inventory, deals, customer information, credit reports, and print paperwork.
DOC Report - A report intended to keep dealership management informed as to their daily progress toward their sales, profit, expense, and inventory goals. Often includes other pertinent data.
Documentation Fee (DOC Fee) - Fee charged by a dealership for a retail deal to cover documentation and delivery fees.
Down Payment - An amount of money paid to the dealer to reduce the balance of the loan prior to calculating the finance charge on the amount financed. This reduces the amount financed.
DP (Dealer Principal) - The top manager at the dealership, often the owner of the dealership.
DRP (Digital Retailing Platform) - Digital Retailing refers to technology that enables shoppers to complete most of a transaction online and finalize it in person. It is typically used for big-ticket items such as cars and boats, but digital retailing is also used whenever in-person verification is required.
DTI (Debt to Income) - Debt to income is expressed as a percentage and compares monthly debt payments to gross monthly income.
EPC Import (Electronic Parts Catalog) - The Electronic Parts Catalog allows a parts department to select parts from an electronic diagram of a vehicle system and import those selected parts into the DMS for ordering.
Equity - Equity is the difference between the value of the vehicle and the amount owed on the loan. If the owner of the vehicle owes more than the car is worth, it is referred to as negative equity.
ESP (Extended Service Plan) - A plan available at extra cost to a vehicle purchaser to cover the cost of specified vehicle repairs/replacements after the expiration of a standard warranty.
Expenses - All costs incurred in operating a business enterprise other than the cost of merchandise purchased for resale (cost of sales).
EXT – Short for “Extended”; is a 3-letter identifier within VUE which is related to the Extended Service Plan option. EXT indicates that a customer has added the service option to their vehicle sale when purchasing and speaking with F & I.
Extended Service RO - Repair Order that has an operation that is being paid by an Extended Service plan.
F & I (Finance & Insurance) - Refers to that part of the sales department that arranges for financing a sale with a third party lender, such as a bank, credit union, or OEM.
F & I MGR (Finance & Insurance Manager) - The F&I manager works with new and used car buyers to arrange financing and insurance programs.
Factory Incentive - Bonuses offered by manufacturers to dealerships to increase the sales of specific models or to reduce excess inventories.
Fees - Charges included when purchasing a vehicle. Typical fees include vehicle registration fees, sales tax, and a documentation or "doc" fee.
Finance Charge - The charge for financing a vehicle over the term of the loan. The finance charge is based on the amount financed by the customer for a vehicle, the annual percentage rate, and the term of the loan.
Finance Reserve - A portion of the finance charges on a retail vehicle sale. The Reserve is earned by a dealership and paid by the financing institution for services performed and any contingent liability the dealership may assume. Finance Reserve is usually a percentage of the net amount financed. Percentages may vary by finance term, degree of dealership liability, and state regulations.
Fixed Ops - Fixed ops are the departments in the dealership that consistently make a profit. Departments include Parts, Service, and Body Shop.
Flat - In finance, a Flat refers to the amount the dealer receives from the lender if they do not mark up the rate from the buy rate.
Flat Rate - Price/cost/time relationship for services and repair work whereby operations are assigned a number of hours for which worker is paid and the customer charged, regardless of elapsed time to perform work. Manufacturers publish Flat Rate (aka Labor Time Guides or LTG) for all regular mechanical and body repair operations.
Flat Rate Time - A rate that is not subject to any additions or adjustments.
Flip - An industry term used in Sales when a customer switches from one car to the other, or a customer switches from their pre-arranged financing to the dealer's financing or switches from retail financing to a lease.
Floor Plan Financing - Loans by financial institutions to an automobile dealership secured by specific vehicles purchased by the dealership for resale purposes.
Floor Up (an Up) - A phrase used by dealerships to identify customers who are initiating the first steps of a vehicle purchase process by visiting the showroom.
Front End - The front-end refers to revenue realized on the sale of the vehicle.
FTP (File Transfer Protocol) - File Transfer Protocol: Standard network protocol used for the transfer of computer files from a server to a client using the Client-server model on a computer network.
FUTA (Federal Unemployment Tax Act) - The original legislation that allows the government to tax businesses with employees for the purpose of collecting revenue that is then allocated to state unemployment agencies and paid to unemployed workers who are eligible to claim unemployment insurance.
GAP (Guaranteed Asset Protection) - Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the gap between the amount they owe on their car and the car's actual cash value (ACV) in the event of an accident.
GL (General Ledger) - The General Ledger is the main accounting record of the dealership and includes the following types of accounts: assets, Liabilities, Equity, Income, & Expenses
GM (General Manager) - The Manager who oversees the various departments of the dealership, including variable operations (sales and financing) and fixed operations.
GM RIM (GM Retail Inventory Management) - The RIM (Retail Inventory Management) project allows General Motors to help dealers manage their parts inventory by automatically controlling the inventory and order process for needed parts.
GM RIM Missing Files Report - This is a report that comes in with an attached Excel SpreadSheet that holds a list of dealers that GM did not get the Daily Sales File that is sent every night to create the dealer's daily RIM Order.
Green or Green Pea - Industry term for a new salesman or sales business manager.
GSM (General Sales Manager) - The manager at the dealership who is responsible for profitability over both new and used sales and for customer retention.
Hat Tag Number - The industry term for a temporarily assigned number that is used to easily identify Service vehicles on the lot. The number is often on a hang-tag on the rearview mirror or a cone-shaped magnetic hat that sits on top of the car.
Holdback - Amounts specified as Holdback on a new vehicle invoice. The amount of the holdback is a percentage of the cost of the vehicle and optional equipment. Holdback should be booked as a receivable from the factory. Holdback amounts due to the dealership from the factory are paid to the dealer annually, semi-annually, or quarterly depending on the firm and plan selected by the dealer.
Home Run - Industry term indicating maximum profit has been made on a deal or when the sales business manager has sold the customer all the insurance he has available.
Internal RO - A repair order for service, repairs, or added options for a vehicle that is in a dealer's inventory. The repair order billing is paid by the dealership from one or more department accounts.
Inventory Adjustment - Accounting adjustment to inventory accounts to reflect changes in value caused by obsolescence, changes in market value, or other variations between book and physical inventory. Usually applies to the inventory value of used vehicles, parts and accessories, and labor (Work in Process).
Invoice - The factory assigned cost of a vehicle including holdback, advertising fees, and transportation costs. An invoice is sent with each new vehicle from the factory listing all specifications and factory-installed equipment on the vehicle.
IO (In and Out) - It is an IO Part when the user adds the part into inventory and sells it at the same time. The Part Record History reflects the receiving and selling of the part. An example would be that you are out of a particular part and pick it up from another source. When billing the part out, you enter IO in the Price Code field. This gives you the option to adjust the Cost, Sale, and the List Price of the part. When using IO, the user does not have to create an order and/or receive the part.
Journal - Book of original entries used to record transactions in detail and before their subsequent posting to the general ledger. A record that keeps accounting transactions in chronological order, i.e. as they occur.
KBB (Kelley Blue Book) - (aka the Blue Book®) Vehicle information resource used by consumers and the automobile industry to establish price guidelines.
Labor Cost - The cost of service or body shop labor to a dealership, usually indexed to a unit of time.
Labor Hours - The time assigned to an operation and charged to the customer.
Labor Rate - The hourly dollar rate charged by the dealership for services performed by mechanical and body technicians. Usually varies by technician or operation skill level and type of operation (car/truck, internal/customer, mechanical/body). Is multiplied by Flat Rate (Labor) Time to determine the labor charge for a service operation. The customer rate is sometimes called Door Rate.
Lease - Instead of financing for the entire vehicle with intent to own, the customer can lease, which allows them to pay only for the amount of the vehicle that they use. The customer pays for the depreciation of the vehicle.
Lessee - The individual leasing the vehicle.
Lessor - The owner of the vehicle that will be leased. i.e. lien holder
Lender - A lender is an individual, a public or private group, or a financial institution that makes funds available to another with the expectation that the funds will be repaid.
Liabilities - An account type that shows something a person or company owes, usually a sum of money. Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, earned premiums, unearned premiums, and accrued expenses.
License Fee - Fee charged by the state to help cover the fees for the tag, regardless of the deal type.
Lienholder - The financial institution that holds title to the vehicle until the final payment has been made by the customer. Banks, Savings and Loans, Credit Unions, and Thrift Lenders are typical lienholders in the automotive industry.
Loan - Sum of money a consumer borrows in order to purchase a car. Many consumers apply for car loans at their local bank or credit union. When applying for a car loan, a borrower will usually begin by specifying how much money he or she wants to borrow.
Location Group - A group of companies that utilize the same Primary Company.
- A Location Group can only contain one Primary Company.
- A Location Group can contain more than one Sub-Location.
- A Customer Database can include many location groups.
~ Each company within the Customer's database can only belong to one Location Group.
- Each Location Group company should utilize the same Tax ID.
London Interbank Offered Rate - Serves as a globally accepted key benchmark interest rate that indicates how much it costs the banks to borrow from each other.
Lost Sale - The customer purchases the vehicle or part from another source, causing the dealership to have lost a sale to a customer.
Loss Payee - The person to be reimbursed by the insurance company when a claim is approved.
Lot Attendant - Also known as a Porter or Lot Tech. Typically manages the lot for the sales department. Moves cars and takes cars in sales and service through car wash and does the make-ready of the vehicle.
LPF (Loan Processing Fee) - Fee the financial institution charges for processing a loan. May increase APR but does NOT affect the financed amount.
LTV (Loan-to-Value) - Higher LTV is a greater risk to a lender because of the likelihood that they have lent more money than the value the vehicle could recover. (Loan amount requested / the value of the vehicle)
Memo Invoice - The manufacturer's invoice cost less shipping charges, holdback, and advertising fees.
Merge Fields - An information field added to an email or text template to automatically enter customer-specific information or values into the email or text.
Miles/Year - The number of miles per year included in a lease. Subsequent miles are charged a predetermined fee per mile.
Money Factor (MRF or Money Rate Factor) - Amount of the finance charge paid on a lease. Somewhat like an interest rate that is calculated with a different method. (aka Money Rate Factor or MRF)
MSRP (Manufacturer's Suggested Retail Price) - The retail sale price recommended by a product's producer. The MSRP is also referred to as the list price by many retailers.
Negative Equity - Negative Equity indicates that the trade-in vehicle has a fair market value that is less than what is owed to the lender. (aka: upside down)
Net Cap Cost - Refers to the price of a vehicle, subtracting any manufacturer's discounts and customer down payments from the manufacturer's suggested retail price.
Non-Capitalize - Items added into the Customer Cash Due and are paid for by the customer at the time of lease signing.
Non-Capped Tax - Some states require you to pay the entire sales tax at the time of lease. This field would be used for that instance. Other states allow you to pay the tax monthly.
NPN (No Part Number) - A No part number part is generally purchased from an outside vendor, and the part record is not in the dealership's parts inventory
OEM (Original Equipment Manufacturer) - A company that makes a part or subsystem that is used in another company's end product.
OEM Balance Forward Statement - Statement from the OEM that shows all of the invoice, payment, and credit note activity in a specified time period. The Balance Forward statement starts with the previous balance from the last statement and keeps a running balance for each entry in the report.
Outside Sales - In automotive sales, the term refers to the sale of a product or service that is not a part of a deal that includes a vehicle. To sell a service contract or aftermarket product independently (outside of a deal) and not a part of a vehicle sale.
P&A - In VUE, P&A is an acronym for either to Parts and Accessories or Price and Availability.
Pack - A pack fee is something the dealer adds to the internal cost of the car. If the dealer says they have a $500 pack, the sales manager's cost would be $500 over invoice. This practice helps ensure a profit is made for the dealership.
Parts Invoice - A document issued by the Parts Department to the buyer that indicates the quantities and costs of the products or services provided by the seller.
Parts Master - The Manufacturer's complete list of available part numbers for a Parts Department.
Parts Kit - In VUE Parts Kits are used to create a single record number that contains multiple part numbers and the quantities needed. It speeds up the time in billing out common parts that are used together.
Parts Purchase Order - A commercial document and first official offer issued by the Parts Department to a seller indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers.
Parts Request - A request for parts by the Technician inside the Technician System for service.
Payoff or Payoff Quote - The amount of money owed by the customer on a trade-in vehicle. Dealers typically require a ten-day payoff to cover interest incurred up to the day of final payoff.
Payment - The dollar amount customer will be responsible for paying for the loan. The time frame of the payments depend upon the selected payment period within the Deal.
PDF (Portable Document Format) - A file format that captures all the elements of a printed document as an electronic image to view, navigate, print, or forward.
PDI – (In Sales) Physical Damage Insurance - Insurance that pays car repairs and/or medical expenses in the event of an accident, i.e. basic car insurance. Required by most, if not all, states.
PDI – (In Service) Pre-Delivery Inspection - Work performed to prepare a new or used vehicle for delivery to a customer. The things the dealer does once it receives the vehicle from the manufacturer or from another source (used car inspection, i.e. UCI).
Pick List - A printed report that provides the bin location of the parts requested. This report includes assigned, unfilled, and billed parts.
Penciling the Deal - This has two applications. First, a sales manager will pencil a salesman's deal by crossing out the customer's offer and penciling in the figure that he wants to get for that car. The second application is used when a salesman or sales manager changes the selling price or trade-in allowance and covers it up with an increase in the customer's monthly payment.
PII (Personal Identifiable Information) - Unique client information (Social Security number, Driver's License number, etc). PII is anything that can identify a customer, including purchase history.
Policy Adjustment - An account used when the dealership does not get paid what they were expecting.
Positive Pay Bank - Positive Pay is a popular automated cash service that helps banks detect fraud by matching the company's issued check with the check presented for payment. The dollar amount, check number, and account number must all match, or the check is flagged and sent back to the issuer for review.
Prices Code - Price Codes calculate based on the amount listed on the Part Record’s Cost, Wholesale and List price fields.
Primary Company - As it pertains to company Sub-Locations, A company utilizing all modules at the Company level, including Accounting, Parts, Service, Payroll, and Sales.
- Primary Location - Unique physical location for Parts and Service of the Company.
- Primary Company Accounting - Owned by the Primary Company and shared with the Sub-Location company(s).
Prime - In terms of pricing, tier A2 and above is prime. For a credit score, prime would require 680-739, super-prime would be above 740.
Prime Rate - The prime rate is generally the lowest rate offered to the most creditworthy customers.
Products - Any Aftermarket products or We Owes that are added into a Deal.
Prorate - Refers to when any vehicle whose license and registration fees in the state are proportionally adjusted by its estimated usage in the state. For example, instead of paying for the full month of registration, the owner pays on a cost-per-day, depending on the number of days remaining in the month.
Prospect - The first step in adding a customer to VUE (including contact information, etc.) before they are converted to a customer and assigned a customer ID number.
Prospect Classes - Retail, Commercial, Fleet, and Wholesale are classifications that apply to a Prospect.
PTI (Payment-To-Income) - Gives the lender a stronger sense that the payment is reasonable considering the customer's income. Analyzing risk. (Payment per month / Total Income)
Purchase Option Fee - Fee charged by the lender giving the option to purchase the vehicle at the end of a lease.
Push - Data that is being pushed from one system to another. (Ex. Pushing customer information from a CRM to a DMS.)
QOH (Quantity On Hand) - Quantity on Hand
Quote – (In Sales) A price to finance, lease, or pay cash for a vehicle offered during the sales process. The quote often does not include taxes, tag, or title. (In Service and Parts) A quote will provide an estimate of how much a service or part will cost.
Rate Sheet - The Dealer Reserve Schedule used by F&I to determine the amount of money they will get from the lender in exchange for enhancing the interest rate above the minimum rate.
RDR (Retail Delivery Report) - Traditionally, an RDR refers to a sold unit that is reported to the manufacturer as a vehicle that is now in service. The date a vehicle is RDR’d plays into the manufacturer's financial reporting, any incentives from the manufacturer to the dealer that are paid upon hitting a particular sales goal, any warranties on a vehicle, and registration with the state DMV for payment of fees. Ex: ‘Make sure you RDR that unit for yesterday's date so that we hit our new car objective and get that $1500 retro on (specific model) for last month.’
Read - In the acronym C.R.U.D. the R stands for Read. This Permission allows the user to view existing records.
Rebate - Vehicle rebates return a fixed amount of money to a buyer for the purchase of a particular vehicle. Paid out by the manufacturer.
Reconciliation - Reconciliation is the process of comparing transactions and activity to supporting documentation. Further, reconciliation involves resolving any discrepancies that may have been discovered.
Reconditioning - Mechanical repairs and appearance work performed on used vehicles to place them in marketable condition.
Reconditioning Cost - The amount of money involved in restoring a trade-in vehicle to a sellable condition. Restoring includes engine work, bodywork, interior cleaning, replacing worn parts, etc.
Reserve - Money the bank gives the dealer for setting up the loan. The income a dealership realized on a contract in excess of the finance source's discount rate.
Residual Value - A vehicle's estimated worth at the end of the lease term. It helps determine the customer's monthly payment and the price to purchase the vehicle after the lease is up. The number on the lease contract is determined at the time of sale.
Retail Installment Contract - A retail installment contract is a contract for the sale of a vehicle according to the payment terms and other terms set forth in the agreement.
RO (Repair Order) - A document used to record repairs and services performed on a vehicle. The repair order may be paid by the customer, internal departments, extended service contracts carriers, or by the manufacturer warranty.
Roll Back - To work a deal backward. Instead of working with the purchase price and trying to determine a monthly payment, start with a known monthly payment, and determine a selling price. (Roll Back can also mean to manual decrease the odometer on a car to make it worth more money - highly illegal.)
Roll Term (Roll the Term) - To stretch the buyer’s loan out to a longer term in order to keep the monthly payment inside the buyer’s target.
Sale Account - An account type that is a revenue account. When selected as an account type of Sales, the Debit Account and Credit Account fields become editable in the Ledger. Users will input the cost of sales account as the debit and an inventory account as the credit.
Schedule - Supporting set of calculations that show how figures on a financial statement (or tax return) were determined.
SDI (State Disability Insurance) - State Disability Insurance Payroll tax required by some states.
Sell Rate - The rate at which a dealer offers financing to a consumer. If the dealer has acquired financing at a lower rate (buy rate), it keeps the difference as profit (spread). Spread: The difference between a dealer's Buy Rate and Sell Rate for financing a loan or lease, typically around one percent.
Selling Price - This is the actual price the customer pays for the vehicle.
Simple Interest - A vehicle loan where the interest is calculated only on the principal (i.e. the amount owed on the loan). A simple interest loan does not compound on interest, which generally saves the borrower money.
Service Lane Inspection - Before any work is done on a vehicle, a Service Writer will inspect it to identify any damage. In order to avoid accusations that the dealership damaged a customer's vehicle while it was being serviced, this is done.
Service Lane Walk - Describes the activity of a dealer salesperson trying to sell replacement vehicles, new or used, to people who have brought their vehicle into the service department for repair work to be done.
SFLI - State Family Leave Insurance - This is not the same as FMLA but similar through the selected states.
SLT (Service Lane Tools (or Service Lane Technology) - SLT includesall of the digital tools that dealerships use to manage their service operations and transact with customers and has the potential to help both automotive brands and dealerships address and adapt to the changing marketplace.
SM (Sales Manager) - A Sales Manager is responsible for supervising and motivating salespeople, as well as promoting and encouraging strategies to sell vehicles. They perform typical managerial duties, such as organizing schedules, training, interviewing, hiring, and setting goals.
Spiff - A bonus paid to a salesperson as an extra reward for selling a particular vehicle. It may be paid by the dealership or, in the case of a new vehicle, by the vehicle manufacturer.
Split Deal - A sale where more than one person helped sell a vehicle, and the commission will be split between all parties involved.
SSO (Single Sign On) - A session and user authentication service that permits a user to use one set of login credentials -- for example, a name and password -- to access multiple applications.
Spread - The difference between a dealer's Buy Rate and Sell Rate for financing a loan or lease.
Stock Type (Certified) - Generally applies to leased vehicles the dealership will purchase at the end of the lease for the used vehicle inventory. It can also apply to auction vehicles. Rarely to vehicle trade-ins or outright purchases. To be a Certified vehicle, the vehicle must be inspected as required by the OEM, and any mechanical issues, including maintenance or minor physical damage, must be corrected before the vehicle can be sold as a Certified vehicle. If the vehicle meets the OEM requirements, the vehicle is sold with a manufacturer powertrain service contract for a limited period of time. Certified = CPO, Demo, and can be an off-lease vehicle too.
Stock Type (Program) - Fleet = returned fleet vehicles and/or rentals.
Stock Type (Remarketed) - Remarketed = off-lease vehicles
Sub Location Company - A Unique secondary physical location for Parts and Service , connecting and posting to the Primary Company's Accounting.
Sub-Prime - Subprime auto loans are loans available to consumers who would be ineligible for other vehicle loans. High risks due to low credit score or not having a high enough income may still qualify for a Sub-Prime loan.
Sublet - The use of outside vendors to perform services. i.e., rental cars, windshield replacement, fix dents on cars).
Sublet RO -Services or repairs on a vehicle that were performed at a business outside of the dealership but were provided through the dealership. An example would be the installation of a third-party radio by an outside vendor.
Subsidiary Ledger - A book containing a group of detailed accounts, the total amounts of which agree with the balance of a control account in the general ledger.
SUI (State Unemployment Insurance) - The original legislation that allows the government to tax businesses with employees for the purpose of collecting revenue that is then allocated to state unemployment agencies and paid to unemployed workers who are eligible to claim unemployment insurance.
Supersession - Instance when one part number is changed to a different part number due to the manufacturer or a part coming from a different part manufacturer.
Subvention - Subvented loans are where manufacturers reduce the cost of financing, usually through a decrease in the interest rate. While a shorter loan term means a higher monthly payment amount, it allows for greater overall savings due to lower interest charges over the life of the loan.
SWFD (State Workforce Development) - Select states collect tax for development programs.
Term - The number of months that the lease contract or loan contract is paid.
Termination Fee - Fee charged by a lender as a penalty for terminating a lease contract early.
Title Fee - Fee charged by the state to cover the title acquired by the owner, regardless of deal type.
TO (Turn-over) - The procedure used in selling where the salesperson turns a prospective buyer over to another salesperson or sales manager to close the sale.
Term - The number of months of the lease contract or loan contract is paid.
Termination Fee - A fee charged by a lender as a penalty for terminating a lease contract early. The fee can be waived by the financial institution if a new lease is agreed upon with the same financial institution.
Title Fee - Fee charged by the state to cover the title acquired by the owner, regardless of deal type.
Total Tax - Sum of all Sales Tax of the deal.
Trade-In - A customer-owned vehicle that may be traded to the dealership for a new or newer vehicle to help reduce the total cost of purchasing the vehicle.
Trade-In Allowance - The amount the dealer agrees to give the customer for the trade-in vehicle contingent upon the purchase of a vehicle from the dealership.The adjusted value in which a dealer has declared a vehicle to be worth.
Trade Payoff - The remaining amount which a customer owes on the loan of the vehicle they are trading in.
Trade Net -The difference between the Trade Allowance and Trade Payoff.
Trial Close - In Sales, the trial close is an attempt to start closing the sale before you enter the closing step. Basically, taking the customer's temperature. Trial closes are valuable and low risk. A trial close asks for an opinion, while a close asks for a decision.
Trim - The different features and equipment provided on a vehicle by the manufacturer. Higher trim levels offer more/better features, while entry-level trims come with basic features/equipment.
TSB (Technical Service Bulletin) - Service bulletins areissued by the manufacturer for problems that affect the normal operation of the vehicle. Sometimes called "secret warranties," TSBs cover known problems and provide repair instructions for service technicians and accordingly are distributed to all of the manufacturer's dealerships.
TT&L (Title, Tax, and License) - Dealerships refer to the out-the-door costs as TT&L. This would add to the amount of the vehicle itself.
Unapplied Time - Amount paid to Mechanical Service and Body Service technicians which have not been accounted for as productive labor on repair orders, earned vacation time, or charged as building or equipment maintenance. Might represent idle or lost time not properly accounted but usually indicates other problems or irregularities. Computed by subtracting the end-of-month Work in Process-Labor physical inventory from end-of-month Work in Process Labor book inventory. Also called Adjustment-Cost of Labor Sales. Displayed on Operating Statement as an increase in the cost of sale, a decrease of Gross Profit, and no sales. If computations produce an increase of Gross Profit, there is still cause for concern.
Unpaid Detail Forward - All of the unpaid entries on a schedule will be brought forward in time until paid and reconciled.
Unwind the Deal (aka Unwound) - If a customer has agreed to purchase a vehicle and has been marked as SOLD in the dealership's CRM and/or DMS and the customer backs out of the deal, the deal will need to be unwound. Additionally, if the dealer is unable to get a lender to fund the deal because of incorrect or insufficient information, the deal will need to be corrected or unwound.
Update - In the acronym C.R.U.D. the U stands for Update. This Permission enables the user to modify records and save the changes.
Upfront Tax - Some states require customers to pay the entire sales tax at the time of lease. In VUE, this field would be used for that instance. Other states allow monthly payments for this tax.
Variable Ops - Variable operations usually refer to the Sales department. It is considered "variable" because the profit from Sales fluctuates with market conditions, time of year, etc. Fixed operations, on the other hand, offer a much steadier income stream. At a dealership, fixed operations are the parts, service, and body shop.
VCI ((Volkswagen Credit, Inc.) - VW Credit, Inc. (VCI) was founded in 1981 to function as the captive financial services arm of Volkswagen Group of America, Inc. and is affiliated with VW of America, Inc., Audi of America, Inc. and Ducati North America, Incorporated. The VCI site services Volkswagen, Audi and Ducati customers, authorized automotive dealers and their affiliated stores with credit and financial services along with products to both dealers and customers in the United States.
VSC (Vehicle Service Contract) - Sometimes known as an extended warranty, this is an optional service contract that covers certain repairs or services. A vehicle service contract may be purchased at any time.
VIN (Vehicle Identification Number) - The number issued by the factory to identify the specific vehicle. Details including the make, model, type, and year manufactured are included in the VIN.
VIS (Vehicle Information System) - VIS is a report in VUE that allows dealers to view vehicle information on demand, including vehicle history, open service campaigns, recalls, and warranty coverage. VIS term is related to General Motors and other OEMs may use a different term. (ex. Ford call's their site Oasis. eVip is Chrysler, Dodge, Jeep and RAM) In a repair order, the VIS button is located next to the VIN. Once clicked, a window will display options to pull a report from the OEM.
VSC (Vehicle Service Contract) - A vehicle service contract may be purchased at any time with a new (and sometimes used) vehicle and is included in the price of the vehicle. This is NOT to be confused with the OEM manufacturer warranty. The VSC starts the day the OEM warranty expires.
VSI (Vendor Single Interest) - Insurance charged by the lender to the customer and included as a fee in the deal to cover the bank against loan default. It increases the financed amount.
Warranty RO - A repair order chargeable to the manufacture under the warranty claims provision of a selling agreement.
We Owe/ Due Bill - Sold accessories that are to be installed or given to the customer at a later time that is documented on a We Owe document or Due Bill.
WIP (Work In Progress) - Cost of labor performed by a technician, claimed on the technician's time card (report), and flagged on a repair order, but not yet processed on a Service Sales Summary or Journal. A Current Asset. An inventory item.