Car Salesman Glossary of Terminology

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Acquisition Fee

Bank fee charged on a lease contract.


ACV

Actual Cash Value of a customer traded vehilcle.


APR

Annual Percentage Rate.


Back-End

Profit from a car sale other than selling price of the car. Usually from the finance or lease rate.


Be Back

A customer that promises the salesperson that they will be back.


Be Back Bus

Describing an imaginary vehicle that will magically deliver all the customers that promised the salesperson that they would be back.


Bubble

A purposely low price or payment given to a customer by the salesman to prevent the customer from buying elsewhere.


Builder

A vehicle in very poor condition.


Bump

To increase the customer's offer


Buried

To owe more than your car is worth.


Butter Nose

The act of a salesperson convincing a customer to keep his trade-in while still buying a new car.


Cap Cost

Selling price on a lease contract.


Closed-End Lease

A lease agreement where the Lessee (Buyer) is not required to buy the vehicle at the end of the lease. Most are modern automotive leases.


Closer

An experienced salesperson that is brought in to complete the negotiation.


Cream Puff

A vehicle in excellent condition.


CSI

"Customer Satisfaction Index". A dealership and salesperson rating system measuring the customers buying experience.


Curbing

When a salesperson is selling cars outside of the dealership in which they are employed. Often by negotiating secretly with the customers that they meet while working at the dealership.


Desk

The Sales-Manager


Drive Off

A Lease Agreement where the Lessee (Buyer) is not required to buy the vehicle at the end of the lease. Most are modern automotive leases.


Equity

Amount of money that is received from trading-in your vehicle.


Ether

The customers excitement of a new car purchase.


F&I

"Finance and Insurance" the department that arranges the financing and signs the paperwork.


Finance Reserve

Profit made by the car dealer when they charge the customer a higher rate or a leasing money-factor.


Flooded the Floor

When the mangement hires a lot of sales people to increase sales.


Flooring

Describes the financing the car dealers uses to purchase their inventory.


Front-End

Profit made from the sale of a vehicle that is base on the vehicle cost.


Gold Balls

Describing a customer with excellent credit.


Green Pea

A new inexperienced salesperson.


Gypsy

A wholesaler that buys used cars from a dealership.


Hanger Queen

Describes "burnt-out" salesperson that rarely talks to customers.


Hanging Paper

When the dealership (usually the F&I manager) convinces a bank to finance a customer with marginal credit.


Hold-Back

Amount paid to the car dealer by manufacturer to offset the cost of financing their inventory.


Inequity

A negative amount that is produced when trading in your vehicle. (When you owe more than the "trade-in value")


Jick

Describing a salesperson or customer that is untruthful.


Killing Bugs

Described a vehicle that is sold.


Kink

Salesperson that steals customers from their colleagues.


LA&H

Life, Accident and Health Insurance offerd on a car loan.


Lay Down

An easy customer that pays full price.


Leg

Amount of money in a monthly payment over the agreed upon purchase price that allows the "F&I" department to increase their profit.


Liner

A car salesman  "on the front lines".


Meet and Greet

The first step in the seven steps of a car sale.


Mini

Minimum commission that is paid to the salesperson when there isn't enough profit in the deal to pay a percentage.


Money Factor

A factor used to calculate the lease charge (rent) on a lease contract.


Monroney Sticker

The window sticker produced by the factory on a new car.  Named after Senator Mike  Monroney who sponsored legislation in 1958 requiring discloser of content, mileage and options on a new car's price sticker.


Mooch

A customer that makes unreasonable offers.


Mop and Glow

Refers to a paint sealant that is sold as an accessory on a car deal.


Mouse House

A secondary finance source usually at a high interest rate used to borrow additional money for a down payment.


Net Cap Cost

Net Capitalized Cost. Lease Amount after cash down and trade-in equity.


Nickel

Five Hundred Dollars


Open End Lease

A rental agreement that obliges the lessee (Buyer) to purchase the leased asset at the end of the agreement. Not a common automotive lease.


Pack

Amount a dealer adds to their invoice cost.


Pencil

A written counter offer from the sales manager.


Phone Pop

An incoming sales phone call.


Play House 90

When the salesman is acting. Like when a salesperson pretends to have a difficult time convincing the Sales Manager to discount a car.


Point

Describes a good location at the dealership for salesmen to meet customers.


Pounder

Represents a $1000 in profit. A "two-pounder" is $2000, Etc.


Rat

Describes a vehicle in poor condition.


Residual

The amount you can buy the car for after the lease.


Roach

A customer with bad credit.


Roasted The App

The act of changing the customer's information on their credit application to make it more favorable to the lender.  Also, can mean to critique the application with the customer to improve the "closing" environment.


Second Baseman

A person that helps a customer negotiate the deal.


Sideways

Describes a customer reversing their commitment to purchase a car.


Skate

When a salesman steals another salesman's customer.


Sled

A vehicle in poor condition.


Slide Rule

A cautious customer that constantly double checks the pricing during the negotiation and does extensive research.


Sneakers

Tires.


Spiff

A bonus paid to a salesman


Spoon

A free deal given to a salesperson from the sales manager.


Stroke

A customer that wastes time visiting a dealership with no plan of buying a car.


Strong

Describes a skilled salesperson.


Subvented

A special lease that is supported by the manufacturer resulting in a low lease payment.


Tripped

Reported the vehicle as sold to the factory and DMV.


Trunk Money

A factory to dealer incentives that are not advertised to the buyer.  Because they are not known to the customer, they are described as "hidden in the trunk".


Turn

When a salesman introduces the customer to another salesman. Usually this occurs when original the salesman is unable to sell a car.


Under Allowance

When a dealer tells the customer their trade-in is worth less than it\'s actual cash value.


Up

A customer. Or to greet a customer


Whiskers

Describes a car that has not sold for a long time.


Write-up

The process of writing a customer's offer on a car.  


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