Life serves up a steady stream of humor. It's there for the taking if you look for it. For the past 13 years, I have found a mixed bag oh humor in the thousands of emails and comments customers have sent me about their cars. Most were looking for a way to put a positive spin on a bad situation, to make their vehicle sound more attractive.
I kept some of the best to share.
Getting Things Mixed Up
It's a Great Car but......
It's not my fault....No, really
Automobiles as Anthropomorphized Objects
Selling a car, van or truck on your own is a slow and demanding process. It is realistic to allow yourself 4 weeks to complete the sale. By following the suggestions listed below, you will be better able to negotiate a fair price for you car when you do locate a buyer.
Questions to Ponder
These are just a few of the many questions you will need to answer if you are going to be a successful DIY Seller. Be prepared for lots of phone calls, missed appointments, tire kickers and lowball offers. Be brutally honest with yourself because selling a vehicle is not for the faint of heart.
If you would rather skip the drama, Get a Quote to Sell Your Car Today
Give your car some curb appeal!
Selling a car is competitive. There are literally hundreds of similar vehicles for sale at any time in your market. If you want to compete, you want your car to stand out from the others. Buyers will look at many cars before making a decision. If your vehicle does not rise above the crowd you will only be able to compete on price. Why bother at all if you are just going to end up selling the vehicle for about the same price as we will pay you today?
Get a Quote to Sell Your Car Today
Pricing a car for sale is part art and part science. The science is easy to master by following the suggestions listed below. The art of pricing a vehicle comes with practice and common sense. Some factors that influence the pricing of a vehicle are esoteric and others such as pricing a convertible in the winter are more practical. Use common sense and you will do just fine.
Be prepared to negotiate the price with your buyer. Everybody wants to think that they are getting a "good deal" and nobody pays asking price when it comes to automobile sales. Regardless of the price you choose, the market is going to tell you if it is a fair price. The market does not care what you think. If you pick an asking price, advertise it in the online classifieds and find that nobody calls, you will know that the price is too high. Listen to the sounds of the market and above all stay flexible!
Is this process starting to sound like a time vampire?
Sales Strategies to Consider
You will want to be creative with your marketing strategies. Gone are the days when you could buy a classified ad in the Sunday paper and wait for the phone to ring. Today's car buyers have the entire world at their finger tips. Keep it simple, keep it local and keep it upbeat when your phone finally rings! On the other hand, you might have decided that the whole DIY process is more than you care to tackle.
Why not Get a Quote to Sell Your Car Today
Effective Showings of Your Vehicle
After spending days or even weeks locating a buyer your attention will turn to the form of payment you are willing to accept for the vehicle. This is usually dictated by the value of the car being sold. Let's take a look at the options and the challenges faced with each payment method.
Each state establishes their own regulations surrounding a vehicle sale. Be sure to check with the department of motor vehicles (DMV) before you sell your vehicle.
The Federal Odometer Act requires the disclosure of your vehicle's mileage. Your state may require additional disclosures. In some states, the license plates are transferred with the car and in others they stay with the seller.
You should furnish a release of liability statement to your buyer and keep a copy for your records. It's also a good idea to keep a bill of sale for the transaction.
The title (when present) is signed by the seller and given to the buyer. In some states, the signatures of the buyer and seller will need to be notarized -another good reason to close the sale at a bank. A new title will be issued and mailed to the new owner.
In many states, both the seller and the buyer have additional responsibilities during and after the transfer of a vehicle. Contact your local DMV field office to learn of the requirements in your state.
To avoid all of these aggravations Get a Quote to Sell Your Car Today
In most states, the sale of a used car is considered "as is" and no warranty is provided or implied. The old adage "buyer beware-caveat emptor" applies. Therefore if you sell a car and it breaks in half the buyer will own both halves. You are under no obligation to repair the vehicle.
That is not to say you are protected if you purposely conceal or lie about the condition of the vehicle. Be honest about the condition of the car before the sale and give the buyer an opportunity to obtain their own professional inspection.
As with most things in life, be fair, be honest and do the right thing. Our advice here is provided for your own personal use and to aid you in deciding if you want to undertake a DIY sale of a used car. It is not intended to provide you with legal advice. If you feel you need legal advice about the sale of your vehicle, you should seek it from from competent professionals in the jurisdiction where you reside.
If you have read this far, you are determined and just might be successful with a DIY sale of your car. None the less, you may still want to consider getting a free quote to sell your car. You might be surprised how simple it is to Sell Your Car Today!
To learn how we buy cars, read about it here or click to watch the video below.
Selling a car, van, truck or SUV has never been easier. It all starts when you fill out the simple Get a Quote form. We evaluate the condition of your vehicle, look at the comps (comparable transactions) and email an offer for your vehicle within 30 minutes. And best of all, there's absolutely no need to talk to a representative. Our form is ready when you are 24/7/365. How cool is that!
Review your offer when it's convenient for you. It'll be in your inbox, ready when you are and valid for the next 3 days. Go ahead, kick the tires a bit, mull it over, talk to your significant other, shop around. Whatever it takes for you to make up your mind. When you're ready and confident that the offer makes sense for you, give us a call. That's when the magic and Customer Satisfaction begins! Read what our customers have to say about RPM
We're fairly certain that getting paid for your vehicle is the one single step that's the most important to you. We get it, really, we do! That's why we partnered with Escrow.com more than 11 years ago to process all customer payments. It doesn't get any easier or for that matter safer for you. We want you to be certain that when it's time to get paid, the funds will be there when and how you want them paid to you! Visit Escrow.com
We will make arrangements for an inspection of your vehicle at a shop close to your home or work. A thorough vehicle inspection from a AAA Approved Auto Repair Shop gives you the peace of mind that your vehicle is inspected by a trusted, independent third party! The inspection assures you that the price we have offered for your vehicle is consistent with the condition of the vehicle. Read more about this step.
When the inspection of your vehicle is completed, the inspection shop will prepare and fax to us a complete report about the condition of your vehicle. We review it and then email it to you for your approval. Shortly after we email the report to you, your personal representative from RPM will call you to discuss the condition report and confirm the purchase offer for your vehicle. Now comes the best part!
It's time to get paid and close the sale. Yippee! Send the title to Escrow.com in the prepaid FedEx envelope that was emailed to you. Escrow.com will pay you according to your payment instructions as soon as they receive the title (next day). If you do not have the title, we will guide you toward quickly completing the sale. Here are some examples of closing your sale when you do not have the title.
Whenever people get together in an occupation, hobby or other field of interest, they form a vocabulary unique to that field. This vocabulary is referred to as slang or jargon. Like any other subculture, their shared language serves to separate them from the rest of society, to unite them and to announce to one another that they belong.
If you are a baseball fan, you will be familiar with an announcer describing a play as a routine 4-6-3 Double Play. This play begins as a ground ball to the second baseman (4) who throws to the shortstop (6) covering second base who then throws the ball to the first baseman (3) for the second out. If you are a newcomer to the game, you will be unfamiliar with what the announcer has just told you. You are an outsider and the jargon used reinforces your feelings of being on the outside.
With this post, I hope to bring you inside the world of the automobile sales profession, to help you gain an understanding of just what the heck is being discussed the next time you buy an automobile. Let's peel back the curtain and take a look under the hood.
This post, Part 2, covers the Sales Department and Part 1 highlights the slang of the Finance Department
Up: A customer visiting a dealership. Derived from the system used by salespeople to designate the next in line to speak with a customer; Who's up next?
Third Baseman: Person accompanying a customer to a dealership. Usually more experienced in negotiating a deal. There to assist the buyer.
Baby Sitter: Sometimes refers to a third baseman. Other times used to designate a co-signer to a buyer with limited credit.
Pipe Smoker: Other names include engineer and college professor. A thorough customer who wants all available technical information before making a decision to purchase a particular vehicle.
Tire Kicker: A shopper who just wants to look and touch, usually untethered to a salesperson. Sometimes referred to as a Looky Lou.
Flake: A customer with bad credit who is usually incapable of obtaining a loan on a vehicle purchase.
Be Back: A customer who is making a return visit to a dealership. These customers typically leave the first time by stating: "I'll be back".
Be Back Bus: The mythical bus that drives returning shoppers to a dealership to buy vehicles.
Bird Dog: A person who refers customers to a particular salesperson for a referral fee. Bird dogging is an illegal activity in many states.
Grape: An easy customer who pays full price with little or no resistance.
Lay Down: Similar to a grape. A lay down will usually pay full price and purchase anything offered to them.
Grinder: Customer who is never happy with the deal they have negotiated. They fight every step of the way and as they get into their new vehicle to leave the dealership, they ask for a full tank of fuel.
Clown: A customer who has not done any research on models or pricing and has no intention of purchasing in the near future but will gladly waste a salesperson's time.
The Sales Rookies
Green Pea: This is the newest of all salespeople. How long someone stays in green pea status is a function of the culture of the dealership where they work and how quickly they exhibit ambition and skill towards selling vehicles.
Liner: This person is typically a green pea. Their primary job is to land a customer on a particular vehicle take them for a test drive and get them to commit to buying it today. They are typically too inexperienced to guide the deal through to a close and will hand-off the customer to a TO Man once they obtain a commitment from the customer.
Shadow: This person is the greenest of the green peas. They are brand new to the business and are often derided for being unable to close a door with two handles. Typically relegated to moving cars and shagging lunches, they literally shadow a more senior green pea while they learn the ropes.
Lot Lizard: This is the group of green peas who spend their days hanging out in the front of a dealership, on the lot, waiting, hoping, for a customer, most typically a grape or a lay down to pull in or jump off of the be back bus.
The Experienced Folks
Closer: This is the most experienced and most fearless salesperson at the dealership. They are know for their ability to close a deal.
Hammer: This person is the Black Belt Closer. Typically the hammer is brought in when all other attempts to close a deal have failed.
TO: Turn Over. The act of transferring a customer from a green pea to another green pea (uncommitted customer) or a closer (customer committed to buy today).
TO Man: The name given to the person who takes a turn from a green pea. Sometimes a green pea who has exhibited a degree of success and is being groomed for a closers role at the store will take turns from more inexperienced green peas to see if they are able to get a customer commitment.
Turn: The act of transferring a customer from one salesperson to another.
Flip: A synonym for a turn.
Touch Base: In a dealership with a tight customer control system, green peas are required to check in with more senior salespeople before allowing a customer to walk. They touch base or check with someone to get help with gaining a customer commitment to purchase a vehicle.
Walk: Allowing a customer to leave a dealership is usually reserved for more senior salespeople.
The Sales Manager
Pencil: Working the deal. The closer brings an offer to the desk and the desk man writes a counter offer on the 4 Square. They don't usually use a pencil but will typically use bright red and green markers to respond to the customer offer. Penciling the deal is another way of saying they are working a deal.
Desk: Literally the place where car deals are worked. Every aspect of the deal is controlled by and goes through the desk including trade-pricing, finance terms and payments.
Desk Man: The desk man is the most senior person in the sales department. Depending on the size of the dealership there can be one or many desk men. Sometimes they are referred to as Sales Manager, General Sales Manager or even General Manager in smaller rural dealerships.
Tower: Some dealerships, particularly larger urban stores will install a desk that is above the sales floor and behind glass so that the desk man can see everything happening on the lot and the sales floor but be able to speak privately with the closers as they discuss strategy.
Bricks: The pavement outside the sales offices. When a desk man has exhausted every possibility in making a car deal with a customer, they can sometimes be heard to tell the closer, in a loud and frustrated voice, "Tell that clown to hit the bricks."
Full Bore: A vehicle sold for full asking price with no discounts given.
Home Run: A deal that is very profitable for the dealer.
Laid Away: When a customer pays more than they should for a vehicle they are said to be laid away.
Bump: Increase the price that the customer will pay for a vehicle. If a deal is unattractive or unprofitable to the dealer, the desk will tell the closer that they need to bump the price higher.
Switch: Move a customer from a vehicle that they want to purchase to one that they are able to afford. Sometimes an inexperienced green pea will commit a customer to a vehicle that they can not afford or are unwilling to pay for. When that happens, the closer must switch the customer to one that they can afford.
Low Ball: Give an unrealistic price to a customer who is not buying today and has given an indication that they intend to shop the dealer's price. When the customer looks around, they are unable to find a better price and returns to the dealer only to learn that the price was indeed an illusion.
High Ball: Similar to a low ball except that the high ball is too much offered for the trade-in.
Buried: When the loan balance on a trade-in exceeds the ACV of the trade, the customer is said to be buried.
Back of Book: An offer for a trade-in vehicle that is below ACV. A vehicle that is in below average condition. An ugly vehicle.
Book Value: Typically used to mean Kelley Blue Book value but could be a generic statement about value in general.
ACV: Actual Cash Value. The price a dealer is willing to pay for your car outright even if you do not purchase a vehicle from them.
Upside Down: Phrase is used when the payoff amount on a vehicle loan is greater than the ACV for that vehicle.
4 Square: Worksheet used by dealers to gain customer commitment on a vehicle purchase. The worksheet literally contains 4 squares and each square represents one of 4 main components of a car deal: purchase price, trade-in value, down payment and monthly payment.
According to the most recent Auto Trader Automotive Buyer Influence Study, the average buyer spends 15.5 hours shopping online before completing a vehicle purchase. By the time they are ready to make a purchase, they know the year, make, model, miles and price they will have to pay for the vehicle they plan to purchase. If you expect to be successful with the sale of your used car you must possess the same information as the buyer and be prepared to use it to your advantage by pricing your vehicle right in the sweet spot of the market.
If your used car has been listed with any of the popular online classified services for more than one week and you are not receiving legitimate inquiries from buyers, then the asking price is most likely set too high. The invisible hand of the market is delivering a slap of common sense to you right now!
Vehicle pricing in the used car marketplace is driven by the supply and demand for a given model. Another less known factor known as substitution plays a vital role in determining the selling price of your used vehicle. You must consider not only how many Toyota Camrys are currently available but also any other reliable mid sized sedan that will substitute for the car you are selling. These models might include; Honda Accords, Hyundai Sonatas, Nissan Altimas, Ford Fusions, Mazda6s, Chrysler 200s, Subaru Legacys, Buick Regals, Chevy Malibus, Volkswagen Passats and Kia Optimas. Most buyers will start their buying process by considering many vehicles in a given category before zeroing in on a specific model. They are not as brand loyal as a new car buyer. When the buyer is unseccessful locating their first choice, they will substitute another model that meets their personal pricing and driving objective.
If you plan to sell your car any time soon, you should learn something from the lesson the market has delivered. Sometimes it is not just the price that is limiting the number of inquiries you receive. Correcting any of the 4 situations described below should help you achieve that goal.
Improperly Priced Cars do not Sell: If your car is listed for sale on a classified website or even with a for sale sign in the window, your goal should be to sell the vehicle. I talk to hundreds of people selling their vehicles every week and I always get a kick out of folks who tell me that they are going to test the market. I sometimes wonder what that means to them. Are they too lazy to do the homework necessary to determine the selling price for their vehicle or are they hoping for a miracle? Miracles happen in Hollywood in such classics as Miracle on 34th Street. I’ve never seen one in automobile sales.
If it has been a week and you have not received a single call on your listing then you have a problem with your price. A car buyer moves through 4 distinct phases that culminates with a purchase. During the early, discovery phase, shoppers who are just starting to look around and forming opinions about which models to target will call and ask questions such as: “Did you like it?” “Would you buy it again?” If you aren’t getting calls with these types of questions, then the price is way out of range with the market. Learn how to price your used car
Improper or Limited Photos: You need photos to sell a car! It’s true they tell a thousand words! More important than the number of photos is the types of photos shown. You need to show the vehicle from every angle. If there are problems with the vehicle, especially cosmetic problems you need to show them. A buyer is not going to waste their time calling on a listing that lacks essential information. Damage to a vehicle is subjective. Something you have lived with for many years may be a deal breaker to your potential buyer. When you describe damage to your vehicle, you need to show the damage with a photograph.
Missing Information: As simple as this may seem, I am always amazed by the number of people that do not include a complete list of even the most basic items with an online advertisement. Humans are constantly forming subconscious opinions about everything we encounter. Right or wrong this is how our brain works. Whenever I encounter an ad with missing information, I form an opinion that the seller is sloppy or lazy and perhaps treated the item being sold in that manner. I don’t even consider their item and move right on to the next listing!
Undisclosed Problems: The price of a vehicle is primarily determined by the year, make, model, equipment, mileage and condition. The market does not care if it is all freeway miles or was only driven by a little old lady on her way to church and the grocery store.
You may be able to get your phone to ring and even have folks schedule appointments to see your vehicle by leaving out essential information. But, you are wasting everybody’s time including your own when you do that. Horses are not wishes. Buyers are going to learn about all of the warts and flaws with your used car when they show up to look at it. They are not going to fall in love with it and pay you too much money for your problems.
In fact, you are delaying the sale of your vehicle when you market it in this manner. Buyers who would consider a vehicle in your vehicle’s condition have passed it over because it is priced to high for their budget. Buyers looking at vehicles in the price range you have chosen are expecting more than they will find upon inspection. They will be angry, perhaps confrontational and will leave in a hurry. I’ve been there as the aggravated buyer discovering undisclosed flaws and would never consider purchasing from that dishonest person-I am left wondering what else they haven’t told me about or are hiding from me.
Selling a vehicle is not rocket science. You have to do your homework by starting out as a buyer would. Research the market; learn what substitute vehicles are selling for as well as the price of your model. Prepare an ad with proper pictures, description, and pertinent information. Above all else; disclose, disclose, disclose. HAPPY SELLING!
Your vehicle is worth whatever somebody will pay you for it!
Like it or not, it's true. The answer is not a flip response to the question, but the only answer possible until you know the buyer group that you choose to buy your vehicle. Your first goal should be to determine which buyer group you are targeting and then to rephrase the question so that it includes your target buyer group.
Your vehicle is valued differently by the three primary groups who buy used cars. Let's take a look at the three different groups of buyers, how to market your vehicle to each group and the amount of time and effort required if you are to realize the best sale price to each group. Generally speaking, the higher the value you are seeking for your automobile, the more time, energy and aggravation you will need to expend to reach your desired outcome.
Once you know the buyer group you are willing to target, you can turn to the question of how much cash you should expect from a sale of the vehicle and how to determine that value.
The 3 primary groups of buyers of used vehicles include: retail auto dealers, private parties and wholesale auto dealers. First, we'll take a look at the difference between the groups and then turn to the expected sale price for each group.
Retail Auto Dealers
Wholesale Auto Dealers
Private Party Buyer
Whether you are selling privately, trading in to a dealer, selling to a wholesale buyer or just plain curious about what your car is worth, it is important to know how to get an accurate valuation. Fortunately, there is no shortage of websites devoted to providing this information. As you will see later in this post, there is a great deal of variation in the pricing that comes from each of the sites listed below. This is partly due to the methodology used by each to produce their pricing models. Keep in mind that most derive a substantial if not lion's share of their revenue from Retail Auto Dealer advertising and paid inclusion in listings on the site. It's best to keep an open mind and do a lot of sleuthing at each site to determine how relevant and accurate their data really is.
When using these sites it's equally important to be as accurate as possible about the condition of your vehicle. Otherwise, you are walking away with an unrealistic valuation for your vehicle and you will expend a great deal of energy and aggravation trying to sell your car for an unrealistic price.
In no particular order of importance some of the more popular sites include: Edmund's TrueMarketValue, Kelley Blue Book, Cars.com powered by Black Book, RPM's Fair Value and NADAguides Used Car Values. Our personal favorites include Black Book and Edmund's. Our experience has taught us that the prices obtained from these two sites will provide you with the most relevant pricing data.
Pricing Models Put to the Test
We decided to test drive the 5 sites listed above to learn how they compared to each other in terms of valuing a popular used car. For our test, we chose a 2010 Honda Accord LX Model 4DR 4 Cylinder Automatic with no extra equipment and 60,000 miles in a white color. We used the zip code of our office location which is 94607 and we conducted our survey on May 12, 2015. Here's what we learned.
Understanding the Price
Regardless of the websites you use to appraise your vehicle, you will be given some valuable information to help you make an informed decision of which sales method best suits your personal lifestyle and temperament. If you visit all 5 listed above, a very clear picture of your used vehicle's valuation will begin to emerge. With a clear and honest assessment of your vehicle's condition and a range of prices such as those shown above, a clear path to selling your old car will begin to emerge.
When you know the buyer group you are going to target and are equipped with a realistic understanding of what it takes to market your vehicle to each of the three groups, you will be able to know the answer to the question; "What's my car Worth?"
It's Easy To Be Real
Getting a realistic valuation for your used car is key to what you do next. Whether you choose to sell to a private party, trade it in, sell to a wholesale dealer or even keeping it for a while longer, having knowledge gives you the power to make the intelligent choice for your personal situation. By being honest about your vehicle's condition, you'll have a clear-eyed assessment of your car's real worth, not a number based on guesswork and high hopes.
This post, Part 1, covers the Finance Department and Part 2 highlights the slang of the Sales Department
The Slang From the Finance Department
Mouse House: Finance Company used to boost a customer down payment in order to qualify for a bank loan on a vehicle purchase.
Sticks: Furniture. Typically a mouse house will require collateral on a loan so the customer's sticks are offered as the collateral.
Double Dip: When two sources of financing are used on a vehicle purchase, it is a double dip. If a customer requires additional down payment in order to qualify for the primary loan, a deal can be structured with a mouse house as a second loan source.
Note: The loan on a vehicle can be referred to as a note.
Tote the Note: Some dealers have an in-house finance company to make loans on automobiles. In this case, the dealer is said to tote the note
BHPH: Buy Here Pay Here. Refers to a dealership that totes the note and then accepts monthly or even weekly payments on the vehicle financed.
Tattoo: Refers to a dealer principal's signature on a finance contract. Fairly rare. Some dealers will guarantee payment (essentially acting as a co-pilot) to the lender in order to fund a vehicle purchase contract with an edgy buyer; We're going to have to tattoo the paper if we want to get this deal bought.
Co-Pilot: A person who signs a loan document (co-signer) with the purchaser of a vehicle when the primary buyer is edgy, has no prior credit, or limited down.
Paper: Refers to the finance contract or promissory note for the purchase of a vehicle.
Bought: Term used to refer to the act of obtaining lender approval on loan applications; I need to get yesterday's deals bought before I can go to lunch.
Unwind: Act of returning a sold vehicle to dealer inventory. Usually happens when the dealer has exhausted all possibilities of obtaining a loan for the buyer; You're going to have to unwind that deal because we aren't tattooing any more deals this month.
Five Finger Close: In reality this technique of document signing is more fiction than fact. More braggadocio than anything else. In it, the finance manager places a hand, hence the five fingers, over the form and points with the other hand to the area where the customer should sign the contract documents. The purpose of the hand over the forms is to hide the finance and trade amounts from the consumer. In the day to day world of the retail automobile industry it is more a saying that signifies to the finance manager that they should hurry through the signing process for any number of reasons. As an example; He's coming out from under the ether. Let's get him in the box and give him the five finger close.
Down: Down payment. Synonyms include down stroke and chunk of change.
Ether: Fog like blissful state entered into when a buyer reaches agreement on a car deal.
Back End: Dealer profits made through the F&I Department. These might include extended warranty, mop & glow, pre-paid service, etch-a-sketch, croak and choke, and dealer reserve.
Leg(s): Difference between true payment required to pay for an automobile purchase and the amount quoted to the consumer during the negotiation process. Often times, the consumer will agree to purchase a vehicle for far more than the true payment required for the purchase. When that happens, the F&I Department has a far easier job of selling back end products to the consumer. A customer can be told that everything was already included in the price for their benefit and since they have already agreed to the payment they are made to feel as if everything is free!
Nickel: $500. I packed a nickel into the deal is a phrase often told to the F&I Manager prior to delivering the consumer to the finance department. Many times this is accomplished by negotiating a payment with the consumer and never discussing the cash price or difference price of the transaction. In that situation, the consumer has agreed to pay $500 more than would have been required to purchase the vehicle.
Bureau: Credit report of the individual purchasing the vehicle.
5 Liner: The top five lines of a credit application. Often times during a negotiation to purchase a vehicle, the salesperson will ask the buyer to provide a 5 liner so that the dealer can then pull a bureau for the purposes of ascertaining the credit worthiness of the buyer.
Gold Balls: A buyer with a high credit score; This guy has gold balls.
Stud: Synonym for gold balls. Can also refer to the quality of a trade-in vehicle when it is in excellent condition and a desirable used car.
Edgy: A buyer with a very low credit score; This guy is edgy. Can also refer to an undesirable trade-in vehicle.
De-Horse: Removing a customer from their trade and asking them to leave the dealership in a borrowed car. Utilized when the vehicle being sold is unavailable for immediate delivery. This can be due to low customer credit score or inventory problem such as availability. The dealer will de-horse a customer if they want to exert some control over the customer but are unwilling or unable to spot deliver the customer purchase. This strategy helps the dealer gain some amount of control over the deal since the customer has to return to the dealership at a later date with the borrowed car.
Spot Delivery: The delivery to the customer of the vehicle they are purchasing right at the time of the sale. For a cash buyer this poses no risk to the dealer but if the customer is a finance buyer the dealer risks being unable to have the loan and the deal approved (by a lender) as written. The risk to the customer is that they must return to the dealership at a later date and renegotiate the purchase with either a greater down payment, different rate or length of contract.
Throw it Against the Wall: When the F&I Department is uncertain of obtaining finance approval for an edgy buyer or a young buyer without a co-pilot, they will sometimes spot deliver the vehicle and hope for approval the next day. In this instance, they will inform the sales manager that they intend to throw it against the wall and hope it sticks (is approved). More often than not, the dealership decides to tell the customer they will let them know of approval the next day and avoid a possible rollback when the deal is not approved by the lender.
House: The dealer or dealership place of business. Sometimes also called the store.
Kink: A problem deal or customer; The co-pilot has bad credit too. That throws a kink in the deal.
Pack(ed): The act of increasing the payment quoted to the customer in order to build additional profit in a deal. The sales department will add legs to the deal so that the F&I manager has an easier time selling back end products.
Straw Buyer: A buyer of a vehicle who is not the intended driver/user of a financed vehicle. This act is always in violation of lender policies with a dealer because the intended driver of the vehicle is usually unable to sustain or support the monthly cost of the vehicle due to poor credit and/or job stability. The lender would be unwilling to make a loan to the intended or real buyer of the vehicle and is defrauded into making a loan they would not normally accept.
Box: The F&I office, the place where legal documents are signed; Let's get him in the box before he comes out from under the ether.
F&I: Finance and Insurance Department in an automobile dealership.
Mop & Glow: Paint and fabric protectors.
Etch-A-Sketch: Chemical process that etches a theft recovery number into the glass of a vehicle.
Dealer Reserve: Also known as reserve Difference between the buy rate and the loan rate quoted on a finance contract. Recent Consumer Protection Laws in some states have sought to limit the amount of dealer reserve (or markup) that a dealer can pass on to the consumer and/or require the disclosure of the dealer reserve amount.
Reserve: See dealer reserve.
Buy Rate: The lowest rate at which a bank will loan money for a purchase contract on an automobile.
Croak & Choke: Life and disability insurance on a finance contract sold by a dealer F&I Department.
Cash Price: The total price of a vehicle including tax, license and registration fees. Sometimes referred to as the OTD (Out The Door) price.
Difference Price: The price after the trade-in ACV is subtracted from the cash price.
ACV: Actual Cash Value. This is the price that a dealer would be willing to pay you for your trade-in if there was no purchase of a vehicle involved.
Rollback: Synonym of unwind.
Rate Sheet: Each lender that works with an auto dealer publishes a list of interest rates, known as the buy rate, that they are willing to accept for an automobile loan contract. It changes with the age of the vehicle, miles, credit score of borrower, new or used and length of contract. This list is called the rate sheet for that lender and it changes frequently. In addition, it will inform the dealer the maximum reserve they are able to earn on each loan they write with that lender.