The dealer pays interest on this until a vehicle is sold and the floorplan reduced.įront-End Front – The gross profit made on the sale of a vehicle, not including F&I (which is the back or back-end).
Can be any number followed by pounder though we referenced a five-pounder in the book.įloorplan – Refers to the money the dealership borrows to finance vehicle inventory. A five-pounder has $5,000 in gross profit (usually only on the front, though most dealers will either combine front and back to describe the profit or break them out and describe them both). A FAB Statement is a way to present a vehicle’s feature (like run flat tires), the advantage that it provides (allows you to drive an extra 50 miles on a flat tire), and how that benefits the buyer (you’ll be able to make it safely home or to the shop should you ever get a flat tire).įive-Pounder – Pound stands for $1,000 in this example and it refers to how much profit you made on a car deal. Used most often to record the Ups and track the progress of a deal.įAB – Feature, Advantage, Benefit. Sometimes called SSI (Sales Satisfaction Index) or survey.ĭealer Principal – The owner of the dealership.ĭesk Log – Generally a record of everything that’s happened and is happening today in the dealership on the sales side of the business.
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This is sometimes called being car drunk.ĬRM – An acronym for Customer Relationship Management though it’s most often used in automotive to describe the software the dealership uses for managing customer contacts.ĬSI – Stands for Customer Satisfaction Index and it refers to the rating system most OEMs use to grade a dealership’s performance (and the performance of the individual salespeople and managers) based on buyer responses to survey questions. The term originates from the prospect’s promise that they’ll “be back.”īird Dog – The term bird dog can refer both to the person who sends you referral business and the fee you pay for these: “did you pay him his bird dog?” Originates from the term for hunting dogs who can retrieve prey for the hunter.īook of Business – There are multiple definitions of this term though as it’s used in Assumptive Selling, it’s meant to describe everyone in your sales funnel (including prior customers).īox, The – Finance office business office.īusiness Office – Any office or area that houses the F&I Managers.īuy-Here-Pay-Here – Describes a dealership that caters to subprime customers and most often carries the loans on the vehicles they sell.Ĭar Drunk – When a buyer is presented with too many choices they will often get confused and need to go home to make their decision. Sometimes just referred to as “Beacon” as in in “What’s his Beacon?”īe-Back – Describes someone who’s been in the dealership but did not buy. For some OEMs, the allocation may relate to what is forced upon a dealer more than what the dealer actually wants to order.ĪPR – Annual percentage rate the interest rate.īack-End Back – This term refers to the F&I functions in a dealership, and most often is used to identify the gross profit made in the business office.īait and Switch – A very old-school (and illegal) practice of advertising a low price on a given vehicle that’s often not in-stock (the bait) only to switch the customer to an inferior or higher priced vehicle when they arrive.īDC – Business Development Center Call Center.īeacon Beacon Score – A credit score generated by Equifax to provide the dealer’s lenders with insight on a buyer’s credit worthiness. It’s certainly not a complete guide to all the industry-specific terms you’ll hear in automotive retail merely a short list of those terms used in the 400+ page book.Īddendum – An addendum is a sticker or card attached next to the manufacturer’s (Monroney) label for new cars or next to the window sticker on used cars that details any dealer-installed accessories and/or market pricing adjustments.Īllocation – While a precise definition of allocation and the way vehicles are allocated to dealers can differ from OEM to OEM, the general definition of this is the new vehicle inventory the OEM allows a dealer to purchase.
It’s the glossary included in the sales training book Assumptive Selling and was written as a reference for that book’s readers. Quick note: This quick list of slang terms car dealers use and other terms common to dealerships is not meant to be a complete dictionary answering every “what does the word _ mean?” when it comes to working in car sales. Car Dealer Slang Every Salesperson Should Know