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 250 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

• A/B Testing: Marketing technique used by dealerships to compare and evaluate the effectiveness of two different marketing approaches to determine which yields better results.
• Ace: A customer who signs on the first offer, making it a very profitable deal for the dealership.
• Acquisition Fee: A fee charged by the dealer for initiating a lease; ostensibly covers the costs of processing the lease but is pure profit.
• 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.
• ADM (Additional Dealer Markup): Tool that dealerships use to increase the asking price for a particular vehicle, typically on high-demand, short-supply vehicles.
• Aftermarket: Accessories or equipment not included in the vehicle as manufactured, but purchased and installed at the dealership or other automotive establishments.
• 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.

B

• Babysitter: Slang term for a co-signer or co-buyer on an automobile contract.
• 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.
• Back-End: Refers to the Finance & Insurance (F&I) department and its profits. This includes financing, warranties, and add-on products.
• Back Out the Deal: See “Unwind.”
• 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.
• Be-Back: A customer who visited the dealership but didn’t buy, promising to return later.
• Be-Back Bus: An imaginary bus that will bring back all the customers who said “I’ll be back!”
• 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.
• 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.
• Blower: Someone who comes into a store claiming they are going to buy a vehicle but never actually buys anything.
• Blue Book Value: Price sourced by Kelley Blue Book (kbb.com), well regarded in the automotive industry since 1926.
• Bomb: Another term for a beater or clunker – a car in terrible condition.
• 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.
• Boss: Slang name for the new car Sales Manager, Used Car Manager, or higher-ranking personnel.
• Box, The: Another term for the Finance office or business office where paperwork is signed and financing is arranged.
• Bring Back: When an individual had to bring a car back because they could not get financed.
• 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.
• Bunny: A customer who doesn’t negotiate very well and is taken in for huge profits.
• 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.
• Buy Rate: The interest rate at which a dealer can obtain financing from a lender.
• Buyback Event: An 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 an 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.

C

• Candy Store: A dealership with a large inventory of vehicles.
• Cancer: Refers to rust or corrosion on a vehicle.
• Car Drunk: When a buyer is overwhelmed by too many choices and needs time to make a decision.
• Cherry: A car in excellent condition.
• Cherry Picker: A salesperson that only helps certain customers, based on how they are dressed or what they are driving.
• CIT: Contracts in Transit – signed financing paperwork awaiting processing by the lender.
• Clam: A trade-in vehicle in very poor condition with little or no value.
• Click: A mile – so a car with 15,000 clicks has 15,000 miles on it.
• Close: The moment when a customer agrees to purchase a vehicle.
• Closer: A highly skilled salesperson who specializes in finalizing deals.
• Closed-End Lease: A lease where the customer is not obligated to purchase the vehicle at the end of the term.
• Clunker: Another term for a beater – an old, worn-out car.
• Cow: A car with full leather interior.
• Crate: Another term for a beater or poor condition vehicle.
• 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.
• Customer Retention: Methods and practices used to maintain relationships with existing customers and encourage repeat business.

D

• Daddy’s Girl: Female customer who needs a parental co-signer to get approved to buy a car.
• Dead Deal: A potential sale that has fallen through.
• Deadbeat: A customer with very bad credit.
• Deal Jacket/Folder: A customer’s packet containing all transaction information when buying a vehicle.
• 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 its dealer partners.
• Dealer Holdback: A small percentage of a vehicle’s cost that a manufacturer pays back to a dealership after the vehicle has been sold.
• Dealer Incentives: Special offers from car manufacturers to their dealers to encourage sales in a slow market or when excess inventory builds up.
• Dealer Invoice: The amount a manufacturer charges its dealers for a car.
• Dealer Prep Fees: Charges added to the purchase price of a new car to cover the cost of preparing the car for sale.
• Dealer Principal: Term used to describe the owner of a dealership.
• Dealer Trade: When a dealership acquires a specific vehicle from another dealership to fulfill a customer’s request.
• Default: Failure to make payments or otherwise abide by the terms of a financing contract.
• De-Horse: Taking a customer out of their trade-in and letting them temporarily drive a borrowed car until purchase is completed.
• Demo Drive: A test drive.
• Depreciation: The decrease in a vehicle’s market value over time.
• Desk: The floor manager’s central location where managers control every deal being worked on.
• Desk Log: A record of all sales activities happening at the dealership on a given day.
• Desk Man: A manager who figures and determines what kind of deal the dealership will make to a customer.
• Destination Charge: The amount charged for transporting new cars from the factory to the dealership.
• Deuce: Slang for $200.
• Diamond: A car that is both beautiful inside and exterior and works well.
• Dime: Slang for $1,000.
• Direct Market Area (DMA): Geographical region defined by automakers and dealerships to target their marketing efforts.
• Disneyland Shoppers: Customers who can’t decide between multiple vehicles.
• Disposition Fee: Charge for costs associated with picking up and processing the returned car at the end of a lease.
• Down Payment: The up-front cash payment that the buyer makes to reduce the amount borrowed.
• 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.
• Duck on the Pond: A customer who is on the lot and has not been attended to.

E-F

• 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.
• Extended Warranty: A service plan that covers repairs and maintenance beyond the manufacturer’s warranty.
• 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.
• Factory Incentives: Same as dealer incentives – incentives that the manufacturer pays to the dealership.
• Fairy: An internet-savvy customer who arrives at the dealership well-researched and prepared.
• Feel of the Wheel: The saying “The feel of the wheel will seal the deal” – if you can get a customer to test-drive, they’re more likely to buy.
• Finance Reserve: The difference between the buy rate and sell rate that the dealer keeps as profit.
• First Pencil: The initial offer or worksheet presented to a buyer.
• Five-Pounder: A deal with $5,000 in gross profit.
• Flat: A flat amount paid as commission on low/no profit deals.
• Fleet Manager: The manager that handles high volume sales to businesses, governments, taxi firms etc.
• Flip: Switching a customer from one car to another or changing their financing from pre-arranged to dealer financing.
• Flipped: When the balance on your trade exceeds the actual value of the vehicle.
• Floor Plan: The loan a dealership uses to finance its inventory.
• Flopper: A customer who buys a vehicle without negotiating the price.
• Four-Square: A standard form used at many dealerships that helps salespeople keep track of four elements of a deal: price, trade-in, down payment, and monthly payment.
• Fresh Up: A new customer who has just contacted the dealership or arrived on the lot.
• Friday Car: Car salesman slang used to describe a car with problems.
• Front-End: The profit made on the vehicle sale itself, not including F&I products.
• Full Lick: Selling a car at the full asking price.
• Full Pop: Paying full price for a vehicle with no negotiation.

G-L

• GAP Insurance: Guaranteed Asset Protection – insurance that covers the difference between what you owe and what your car is worth if it’s totaled.
• 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.
• Go-Go Juice: Car salesman slang for fuel.
• 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.
• GSM (General Sales Manager): Responsible for the entire retail side of a car dealership.
• Gun Turret: A sunroof.
• Ham Sandwich: A car deal with a moderate profit.
• Hammer: To negotiate aggressively or pressure a customer.
• 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.
• High Ball: Offering an unrealistically high trade-in value initially.
• Hit Everything but the Lottery: A vehicle with a high level of body damage.
• Hit the Bricks: When a customer leaves without buying.
• Hold, Holding: A tactic where a dealer undervalues a customer’s trade-in initially to leave room for negotiation.
• Home Run: When a salesman has taken advantage of every element of the deal: trade-in, sale price, and financing.
• Hooked: When a car sales clerk gets a customer to say yes when buying a vehicle.
• House: Car salesman lingo for calling the car dealership itself.
• House Deal: An inside deal for an employee, friend, or family member, typically with minimal profit for the dealership.
• House Mouse: A salesperson that always tends to get all the house deals from management.
• 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.
• Internet Lead: A customer inquiry that comes through the dealership’s website or other online sources.
• Invoice Price: The amount the dealer pays the manufacturer for a vehicle.
• Jacket: Another term for deal folder – contains all customer transaction information.
• Jack: To raise the price.
• Jicky: Term with unclear origin used in some dealerships.
• Juice: Interest rate or the profit in a deal.
• Junker: Another term for a beater – an old car in poor condition.
• Kick: Commission or profit from a sale.
• KPI: Key Performance Indicator – metrics used to measure dealership success, such as sales volume, customer satisfaction, and profitability.
• Land Yacht: A large luxury car.
• Lawyer: A friend brought along to help secure a better deal and provide the buyer advice.
• Lay Down: An easy sale; a customer who agrees to the deal with little negotiation.
• Lease End Inspection: Mandated inspection by the leasing company to check for excess wear and tear.
• Leftover: A new car from the previous model year that remains unsold.
• Lemon: A defective vehicle that qualifies for manufacturer buyback under lemon laws. This varies from state to state, but essentially a vehicle during its 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.
• Lot Lizard: Someone who spends a lot of time on the lot but rarely buys.
• Lot Rot: The deterioration of vehicles that have been sitting unsold on dealership lots for an extended period.
• Low Ball: An unrealistically low figure given to a customer who wants to shop the price against other dealerships.
• LTV: Loan-to-Value ratio – the amount of the loan compared to the value of the vehicle.

M-R

• Mama’s Boy: A male customer who needs a parent to co-sign their loan.
• Manufactures Buyback: When an automaker purchases a new car back from the buyer due to mechanical issues or lemon law.
• 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.
• Mickey: Slang term for a down payment loan arranged by the dealership.
• 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.
• Money Factor: The financing charge in a lease, similar to interest rate.
• 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.
• Mooch: A customer who tries to get something for free from the dealership.
• Mother: See T.O. Man.
• Mouse House: Slang for a subprime finance company known for high-interest rates.
• MSRP: Manufacturer’s Suggested Retail Price – the “sticker price” of a new vehicle.
• 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.
• Nugget: A highly profitable deal.
• 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.
• Open-End Lease: A lease where the customer is obligated to guarantee the lease end residual value.
• Orphan Owner: A customer whose original salesperson no longer works at the dealership.
• Over-Allowance: Giving more for a trade-in than it’s actually worth.

P-S

• Pack: A set amount added to a vehicle’s cost, often for marketing or overhead, which reduces the salesperson’s commission.
• Paper: The financing documents or loan contracts.
• Paper Hanger: Refers to the F&I manager who handles financing paperwork.
• Payment Buyer: A customer focused primarily on monthly payment amount.
• Payment Packing: Quoting a higher monthly payment than necessary to leave room for adding products.
• PDI (Pre-Delivery Inspection): The pre-delivery inspection of a vehicle for display or delivery.
• 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.
• Player: A customer with excellent credit and the ability to buy a car.
• PMA: Primary Market Area – the geographic territory assigned to a dealership by an automaker.
• Point, The: A high-traffic area within the dealership where salespeople are likely to encounter potential customers.
• Pounder: Slang for profit on a deal. Example: A “two-pounder” is a deal with $2,000 profit.
• Pre-Approval: When a customer has already been approved for financing before arriving at the dealership.
• 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.
• Qualified Buyer: A customer who has been pre-approved for financing or has demonstrated ability to purchase.
• Rat: A derogatory term for a customer with very bad credit.
• Rate Markup: The difference between the buy rate and sell rate on financing.
• Rattletrap: A very old and worn-out car.
• Re-hash: To contact a lender again to try to get a previously declined loan approved.
• Re-Work: Taking a dead deal and restructuring it to see if they can get a sale.
• Rebate: A partial refund on a new-car purchase offered by the manufacturer.
• Rent Charge: The portion of a lease payment that goes toward financing.
• Reserve: See Finance Reserve.
• Residual Value: The estimated value of a car when it is returned from a lease.
• Roach: A customer with such terrible credit that they cannot get financed.
• Roach Coach: The food truck that comes around to the dealership.
• 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.
• ROI: Return on Investment – a measure of profitability relative to cost.
• Roll: To include negative equity from a trade-in into the new loan.
• Roll Back: To work a deal backwards from payment to price, or illegally roll back an odometer.
• Roll Term: To stretch the buyer’s loan to a longer term without telling them.
• 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.
• Scrub: To review and clean up credit applications or deals.
• Second Baseman: A person accompanying a customer to help them negotiate the deal.
• Sell Rate: The rate at which a dealer offers financing to a consumer.
• Service Walk: Taking a customer to the service department to show them where they’ll bring their vehicle for maintenance.
• Shotgun: Sending a customer’s credit application to multiple lenders simultaneously.
• Short Arm: A customer who negotiates for a long time over a small amount of money.
• Showroom Log: A list of customers currently at the dealership.
• Sight Unseen: Appraising a trade-in vehicle without physically inspecting it.
• Silent Walk-Around: Letting the customer explore the vehicle without constant sales pressure.
• 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.
• Smoker: A car that a dealer or sales manager is using as a daily driver before it’s sold.
• SMS Marketing: Sending promotional or transactional messages using text messages.
• Soft Pull: A credit inquiry that doesn’t impact the customer’s credit score.
• Spiff: A tip, kickback, or payment of any kind, usually cash, handed between salespeople.
• Split: When two salespeople share credit and commission for a sale.
• Spoon Fed: When a manager hands a salesperson an easy sale.
• Spot Delivery: Letting a customer take delivery of a vehicle before financing is finalized.
• Spot: A customer that comes in and buys a car the same day.
• Spread: The difference between a dealer’s buy rate and sell rate for financing.
• SSI: Sales Satisfaction Index – another term for CSI.
• Sticker: Short for the window sticker displaying the vehicle’s price and features.
• Sticker Price: Same as MSRP – the manufacturer’s suggested retail price.
• Sticker Shock: Surprise or disbelief at the high price of a vehicle.
• Stiff: A customer who cannot get financing due to very poor credit.
• Stips: Stipulations – additional requirements from lenders before approving a loan.
• Stock Number: The inventory number assigned to each vehicle.
• Stocking: When a dealer tries to convince a customer to buy a vehicle in stock instead of ordering.
• Straw Purchase: When someone with good credit buys a car for someone with bad credit. Often illegal.
• Strong: A salesperson who consistently closes a high percentage of deals.
• Stroke, Stroker: A customer who wastes a salesperson’s time without any intention of buying.
• Subprime: Customers with poor credit who require special financing.

T-Z

• T.O. (Turn Over): When a manager takes over a sale from a salesperson.
• Tanked: When a customer is upside down on their trade-in.
• TD: Turned Down – a loan application rejected by a lender.
• Third Baseman: A person accompanying a customer to help them negotiate.
• Tire-Kicker: A non-serious shopper who’s just browsing.
• Toad: A trade-in vehicle in very poor condition.
• Too High: A common response from customers to any price.
• Tower: The office where sales managers work, usually elevated to see the showroom.
• Trade Allowance: The amount credited for a trade-in vehicle.
• Trade Walk: Gathering information about a customer’s trade-in vehicle.
• Trade-In Value: The price a dealer will pay for your current car when selling you a new one.
• Tricked Out: A vehicle with aftermarket modifications.
• Trunk Money: Factory-to-dealer incentives not publicly advertised.
• TT&L: Tax, Title, and License fees.
• Turd: A car in terrible condition.
• Turn: The practice of passing a customer from one salesman to another.
• Twisted: A vehicle that has been in a serious accident.
• Under Water: Another term for negative equity.
• Unit: Refers to a single vehicle in the dealership’s inventory.
• Unwind: To undo a deal and return a vehicle to the dealership.
• Up: A potential customer who walks onto the lot or into the showroom.
• Up Bus: A fictional mode of transportation that “delivers” customers.
• Up Log: Record of all customers who visit the dealership.
• Up System: Method to fairly distribute customers to salespeople.
• Upside Down: When the value of the car is less than the amount owed.
• Upsell: To persuade a customer to purchase additional products or services.
• Voucher: Commission or payment slip for a salesperson.
• 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: A salesperson who has trouble closing deals.
• Weak Stick: A salesperson who is not very good at negotiating.
• We Owe: A document listing items promised to the customer but not yet delivered.
• Wholesale Value: What a dealer would pay for a vehicle at auction.
• Whopper with Cheese: A highly profitable deal.
• Wiggle Room: The amount of negotiating flexibility on a vehicle’s price.
• Working a Deal: The process of negotiating with a customer.
• Wreck: A severely damaged vehicle.
• Write-Up: The paperwork documenting a sale.
• X-Plan: Special pricing programs offered by manufacturers to certain groups.
• Yield: The profit margin on a deal.
• Yo-Yo: When a customer is called back to the dealership because financing fell through.
• Zero Down: A deal with no down payment required.
• Zombie: A deal that was thought dead but comes back to life.

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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