Car Dealer Terminology: Your Ultimate Guide to Automotive Lingo

Walking into a dealership can feel like entering a foreign country. Salespeople toss around car dealer terminology that sounds like a secret code. But fear not, I’m here to demystify the language of car sales. Let’s break down over 100 essential words of car dealer terminology you need to know, complete with examples and insights to help you navigate the car buying process like a pro:

A-C

• Addendum: A sticker attached to the window of a new or used car listing dealer-installed accessories and price adjustments. Example: A sticker listing a dealer-installed sunroof priced at $1,500 or a premium sound system for $800.
• Ace: A customer who signs on the first offer, making it a very profitable deal for the dealership.
• All American Deal: A zero money down deal financed for 72 months.
• Allocation: The inventory of new vehicles an automaker allows a dealer to purchase.
• APR: Annual Percentage Rate – the interest rate on a car loan. Example: An APR of 4% means you’ll pay $4 in interest for every $100 borrowed over a year.
• As-Is: A vehicle sold without any warranty, meaning the buyer assumes all risk of future repairs.
• Atomic Pencil: A slang term for when a manager makes an extremely high initial offer to start negotiations from an inflated position.
• Back-End: Refers to the Finance & Insurance (F&I) department and its profits. This includes financing, warranties, and add-on products.
• Back Door the Trade: A tactic where the buyer doesn’t reveal their trade-in until a price for the new vehicle is agreed upon.
• Backing Up: When a customer changes their mind about a deal or its terms.
• Bait & Switch: An illegal practice where a dealer advertises a low price for a vehicle they don’t have in stock to lure customers in and then try to sell them something else.
• Beacon Score: A credit score generated by Equifax to assess a buyer’s creditworthiness. Example: A Beacon score of 720 indicates good credit and may qualify for lower interest rates.
• Be-Back: A customer who visited the dealership but didn’t buy, promising to return later.
• Beater: A slang term for an old, worn-out car in poor condition.
• BDC: Business Development Center – handles customer inquiries, schedules appointments, and may initiate initial sales discussions. Example: You might receive a call from the BDC after submitting an online inquiry about a vehicle.
• Bird Dog: Someone who refers customers to the dealership, often for a fee. Example: A mechanic who recommends a specific dealership to their customers for car purchases.
• Book of Business: All customers and prospects in a salesperson’s sales funnel.
• Boomerang: A pricing strategy where a dealer offers a trade-in value so high that the customer is likely to return even after shopping around.
• Box, The: Another term for the Finance office or business office where paperwork is signed and financing is arranged.
• Broom, Broomed: Getting rid of a customer who isn’t going to buy.
• Bucket: A slang term for a vehicle in poor condition and low value.
• Bullet: A customer with excellent credit who can qualify for the best financing options.
• Bump: To increase the price or value, usually referring to an offer on a trade-in.
• Buried: When a customer owes significantly more on their current vehicle than it’s worth, making it difficult to trade in.
• Bus Driver: A co-worker or customer who criticizes or complains to superiors about others.
• Buy-Here-Pay-Here: A dealership that caters to subprime customers and often finances the vehicles they sell, typically at high interest rates.
• Buyback Event: A event put on by a promotional company that drives above normal traffic to dealers showrooms, while attempting to purchase used cars at large volume.
• Buyback Promotion: When a event is hosted by a dealer advertising to consumers about the need to purchase additional inventory. Those opportunities are converted to sales opportunities.
• Buyer’s Remorse: Regret or anxiety after purchasing a vehicle.
• Clam: A trade-in vehicle in very poor condition with little or no value.
• Candy Store: A dealership with a large inventory of vehicles.
• Car Drunk: When a buyer is overwhelmed by too many choices and needs time to make a decision.
• CIT: Contracts in Transit – signed financing paperwork awaiting processing by the lender.
• Close: The moment when a customer agrees to purchase a vehicle.
• Closer: A highly skilled salesperson who specializes in finalizing deals.
• CRM: Customer Relationship Management – software for managing customer information and interactions. Example: Dealerships use CRMs to track customer contacts, preferences, and service history.
• CSI: Customer Satisfaction Index – measures how happy buyers are with their dealership experience, often based on surveys. Example: A high CSI score indicates a positive customer experience and can contribute to a dealership’s reputation.

D-F

• Dead Deal: A potential sale that has fallen through.
• Deadbeat: A customer with very bad credit.
• Dealer Buyback: Designed to streamline the new car buying process while offering comfort to the consumer in the form of what is essentially a guaranteed return policy.
• Dealer Buyback Sales Event: Promotional Company such as Willowood Ventures provides buyers exclusive VIP offers to trade or sale vehicles to it’s dealer partners.
• Dealer Trade: When a dealership acquires a specific vehicle from another dealership to fulfill a customer’s request.
• Demo Drive: A test drive.
• Desk Log: A record of all sales activities happening at the dealership on a given day.
• Dime: Slang for $1,000.
• Disneyland Shoppers: Customers who can’t decide between multiple vehicles.
• DTI: Debt-to-Income Ratio – a measure of a buyer’s monthly debt payments compared to their gross income. Lenders use this to assess lending risk.
• Deuce: Slang for $200.
• Easy: A sale that’s completed with little negotiation or resistance from the customer.
• Equity: The difference between what a vehicle is worth and what is owed on it.
• Ether, Under the Ether: When a customer makes emotional car-buying decisions, making them more susceptible to sales tactics.
• Eyeball: The visual appeal of a vehicle.
• F&I: Finance and Insurance department.
• FAB: Feature, Advantage, Benefit – a sales technique for presenting vehicle features in a way that highlights their value to the customer.
• Fairy: An internet-savvy customer who arrives at the dealership well-researched and prepared.
• Five-Pounder: A deal with $5,000 in gross profit.
• Flip: Switching a customer from one car to another or changing their financing from pre-arranged to dealer financing.
• Floor Plan: The loan a dealership uses to finance its inventory.
• Flopper: A customer who buys a vehicle without negotiating the price.
• Fresh Up: A new customer who has just contacted the dealership or arrived on the lot.
• Front-End: The profit made on the vehicle sale itself, not including F&I products.

G-L

• Get-Me-Done: A customer with poor credit who’s desperate to buy a vehicle.
• Ghost: A customer with no credit history.
• GM: General Manager (also used for General Motors).
• G-Note: Slang for $1,000.
• Gold, Gold Balls: A customer with excellent credit and a large down payment.
• Grape: A customer who is easy to close on a deal at a high profit.
• Green Pea: A salesperson new to the car business.
• Grinder: A customer who negotiates aggressively and relentlessly for the lowest price.
• Gross: The gross profit of a deal before expenses.
• Ham Sandwich: A car deal with a moderate profit.
• Hand Shaker: A vehicle with a manual transmission.
• Hat Trick: Three vehicles sold in one day by a single salesperson.
• Heap: A car in very poor condition with little value.
• Hold, Holding: A tactic where a dealer undervalues a customer’s trade-in initially to leave room for negotiation.
• House Deal: An inside deal for an employee, friend, or family member, typically with minimal profit for the dealership.
• In the Bucket: Owing more on a trade-in than it’s worth, or having such bad credit that obtaining financing is impossible.
• Instant Retargeting: An online advertising technique that presents an offer to visitors immediately after they leave a dealership’s website.
• KPI: Key Performance Indicator – metrics used to measure dealership success, such as sales volume, customer satisfaction, and profitability.
• Lay Down: An easy sale; a customer who agrees to the deal with little negotiation.
• Leftover: A new car from the previous model year that remains unsold.
• Lemon: OEM Manufacturer Buyback Qualifications: This varies from state to state, but essentially a vehicle during it’s warranty period must have a specific issue that is of substantial nature that cannot be fixed. Depending on the state the manufacturer and dealer will have a set amount of time to remedy the issue. If no remedy is found and the issue is prolonged a buyback will be initiated.
• Liner: A salesperson who specializes in handling customers who are resistant to buying.
• Load ‘Em Up: Overwhelming a customer with information or adding extra backend products to a deal.
• Locate: To find a specific vehicle at another dealership.
• Looking for a Good Buy (BYE): A sarcastic dismissal of a customer who is being unreasonable or demanding.

M-R

• Manufactures Buyback– This is when an automaker or OEM purchases a new car back from the buyer or lessee. This is typically due to mechanical issues, or lemon law.
• Mama’s Boy: A male customer who needs a parent to co-sign their loan.
• May-Pops: Bald tires on a vehicle.
• Meat on the Bone: A car deal that offers a decent profit margin.
• Mexican Silence: A customer who refuses to answer questions or reveal their budget.
• Mini: The minimum commission a salesperson can earn on a sale.
• MMR: Manheim Market Report – provides estimated auction values for vehicles, which dealers use to assess trade-in values. Example: A vehicle with an MMR of $10,000 is expected to sell for around that price at auction.
• Monroney Sticker: The official window sticker on new cars listing features and MSRP. It’s named after Senator Mike Monroney who championed this consumer protection measure.
• MSRP: Manufacturer’s Suggested Retail Price – the “sticker price” of a new vehicle.
• Mouse House: Slang for a subprime finance company known for high-interest rates.
• Mooch: A customer who tries to get something for free from the dealership.
• NADA: National Automobile Dealers Association – a trade organization representing dealerships.
• Needs Analysis: The process of determining a customer’s vehicle requirements and preferences through questioning and observation.
• Negative Equity: When a customer owes more on their trade-in than it’s worth. Example: If you owe $15,000 on a car worth $10,000, you have $5,000 in negative equity.
• Nickel: Slang for $500.
• OEM: Original Equipment Manufacturer – refers to major automakers like Ford, Toyota, Honda, etc.
• Old Car Dog: A seasoned, experienced salesperson.
• One-Legged Up: A customer shopping without their spouse or decision-maker.
• One-Price Store: A dealership that doesn’t negotiate on price; what you see is what you pay.
• Orphan Owner: A customer whose original salesperson no longer works at the dealership.

P-S

• Pack: A set amount added to a vehicle’s cost, often for marketing or overhead, which reduces the salesperson’s commission.
• Pencil: The initial offer or worksheet presented to a buyer.
• Pipe Smoker: Similar to a tire-kicker, but spends a lot of time inspecting vehicles without serious buying intentions.
• PMA: Primary Market Area – the geographic territory assigned to a dealership by an automaker.
• Player: A customer with excellent credit and the ability to buy a car.
• Pound: Slang for $1,000 profit on a deal. Example: A “two-pounder” is a deal with $2,000 profit.
• Q-Tip: An older customer who drives a sporty convertible.
• Quarter: Slang for $2,500.
• Quarterback: A person accompanying a customer to help them negotiate the deal.
• Rat: A derogatory term for a customer with very bad credit.
• Rattletrap: A very old and worn-out car.
• Re-hash: To contact a lender again to try to get a previously declined loan approved.
• Roach: A customer with such terrible credit that they cannot get financed.
• Road-to-the-Sale: The steps necessary to complete a car sale, from greeting the customer to signing the paperwork.
• Rocket: A tactic where a dealer sends a customer away with an unrealistic offer they can’t honor, hoping the customer will return ready to negotiate a more reasonable deal.
• ROI: Return on Investment – a measure of profitability relative to cost.
• Rubberneck: A customer who is just looking and has no intention of buying.
• Runner: A customer who abruptly leaves the dealership during the sales process.
• Russ, Russ Rooking: Derogatory slang for Asian customers, who are often perceived as tough negotiators.
• Sales Desk, Sales Tower: The area where sales managers sit and work deals.
• Sales Funnel: A visual representation of the sales process, showing how customers move from initial contact to purchase.
• Save-a-Deal Meeting: A meeting to review lost deals and strategize on how to recover them.
• Second Baseman: A person accompanying a customer to help them negotiate the deal.
• Service Walk: Taking a customer to the service department to show them where they’ll bring their vehicle for maintenance.
• Short Arm: A customer who negotiates for a long time over a small amount of money.
• Shotgun: Sending a customer’s credit application to multiple lenders simultaneously to try to get them approved.
• Showroom Log: A list of customers currently at the dealership.
• Sight Unseen: Appraising a trade-in vehicle without physically inspecting it, which is generally not advisable.
• Skating: When one salesperson attempts to sell to another’s customer.
• Sled: Slang for a car, often a trade-in.
• Slug: A customer who is indecisive and reluctant to make a buying decision.
• Soft Pull: A credit inquiry that doesn’t impact the customer’s credit score. It’s often used for pre-qualification.
• Spoon Fed: When a manager hands a salesperson an easy sale without the need for much effort.
• Sticker: Short for the window sticker displaying the vehicle’s price and features.
• Sticker Shock: Surprise or disbelief at the high price of a vehicle.
• Stiff: A customer who cannot get financing due to very poor credit.
• Stocking: When a dealer tries to convince a customer to buy a vehicle that’s in stock instead of ordering the exact one they want.
• Stroke, Stroker: A customer who wastes a salesperson’s time without any intention of buying.
• Strong: A salesperson who consistently closes a high percentage of deals.
• Straw Purchase: When someone with good credit buys a car for someone with bad credit who wouldn’t qualify for a loan on their own. It’s often illegal.

T-Z

• Tanked: When a customer is upside down on their trade-in, owing more than it’s worth.
• TD: Turned Down – a loan application that has been rejected by a lender.
• The Point: A high-traffic area within the dealership where salespeople are likely to encounter potential customers.
• Third Baseman: A person accompanying a customer to help them negotiate the deal.
• Tire-Kicker: A non-serious shopper who’s just browsing and not ready to buy.
• T.O.: Turn Over – when a manager takes over a sale from a salesperson, usually because the customer is hesitant or demanding.
• Toad: A trade-in vehicle in very poor condition and low value.
• Too High: A common response from some customers to any price, often used as a starting point for negotiation.
• Trade Walk: Gathering information about a customer’s trade-in vehicle, often by walking around it and discussing its condition and features.
• Tricked Out: A vehicle with aftermarket modifications such as custom wheels, spoilers, or a modified engine.
• TT&L: Tax, Title, and License fees.
• Trunk Money: Factory-to-dealer incentives that are not publicly advertised.
• Turd: A car in terrible condition.
• Twisted: A vehicle that has been in a serious accident.
• Under Water: Another term for negative equity, when a customer owes more on their car loan than the car is worth.
• Unit: Refers to a single vehicle in the dealership’s inventory.
• Unwind: To undo a deal and return a vehicle to the dealership, usually because financing fell through.
• Up: A potential customer who walks onto the lot or into the showroom.
• Up Bus: A fictional mode of transportation that “delivers” customers to the dealership.
• Upsell: To persuade a customer to purchase additional products or services, such as extended warranties or paint protection.
• VIN: Vehicle Identification Number – a unique 17-digit code assigned to each vehicle.
• Walk: When a customer leaves the dealership without buying.
• Walk-In: A customer who arrives at the dealership without an appointment.
• Weak Stick: A salesperson who is not very good at negotiating or closing deals.
• We Owe: A document listing items promised to the customer but not yet delivered (e.g., accessories to be installed later).
• Whopper with Cheese: A highly profitable deal.
• Wiggle Room: The amount of negotiating flexibility there is on a vehicle’s price.
• Wreck: A severely damaged vehicle.

Understanding this car dealer terminology gives you an edge when shopping for a car. You’ll communicate more effectively with salespeople and make more informed decisions. Remember, knowledge is power in the world of car buying.

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FAQs for Car Dealer Terminology:

• What’s the difference between MSRP and the actual price I’ll pay? MSRP is a starting point. The actual price can be negotiated and may include additional fees or discounts.
• How important is understanding F&I when buying a car? Very important. The F&I office is where you’ll discuss financing, warranties, and other add-ons that can significantly impact your total cost.
• What should I do if I feel pressured by a salesperson using unfamiliar terms? Don’t be afraid to ask for clarification. A reputable dealer will be happy to explain any terminology you don’t understand.
• How can I use this knowledge to my advantage when buying a car? Understanding these terms allows you to navigate negotiations more confidently and spot potential upsells or hidden fees.
• Are there any words with car dealer terminology I should be particularly wary of? Be cautious of vague terms like “dealer fees” or “administrative costs.” Always ask for a breakdown of any charges you don’t understand. Car dealer terminology is vast just know it’s got a language of it’s on and like many things it’s different in every region. Have fun car shopping!