Learn the Lingo: At the DealershipMarch 1, 2015
If you’re not a total car expert, there are a ton of words that might be over your head when you enter a dealership, mechanic’s shop or other automotive-related setting. Hence, I’ve put together a series of posts to educate you on car lingo, no matter where you are! Hopefully after reading this post you’ll feel confident in any car setting. 🙂 ___________________________________________________________________________________ The first post is about the lingo that gets thrown around at the car dealership. The salesmen, managers and other members of the team all have their own vocabulary, so it can be tough to know exactly what they’re all talking about. But with this handy guide you’ll be slinging around the lingo with the best of them! Eye baller: Car dealers refer to the bright, flashy, sporty looking rides with this term. Green pea: A new salesman or sales business manager at the dealership. Gap Insurance: Insurance that covers the difference between a vehicle’s depreciated value in a loan or a lease and the amount owed on it in case it is stolen or totaled, a difference the owner or lessee would otherwise have to pay the lessor. Roll back: This is the term used with a salesman works the deal backwards. Instead of talking about a purchase price and trying to determine a monthly payment, you first agree on a monthly payment and then decide on a selling price. Shout out: This is the fun part! When a customers commits to buying a car, the salesman often shouts over the dealership’s public address system announcing the deal, followed by immediate applause from all the other people in the showroom. CSI: This term stands for the “Customer Satisfaction Index,” which is a dealership and salesperson rating system measuring the customers buying experience. F&I: This stands for the Finance and Insurance office where the documents are signed. The F&I salesperson usually works out add-on items like extended warranties, fabric protection and alarms. Demo: This is what the car salesmen call a test-drive. Closer: Sometimes a more experienced salesman steps in to help finalize a deal. This salesperson is known as the “closer.” Money Factor: This is an annual percentage rate for a car lease, essentially the same thing as an interest rate. For example, a 0.0025 money factor converts to 6% interest rate. Cost of Funds: An APR, money factor, or rent charge. This is the charge for using the bank’s—or another lender’s—money to acquire the car. Also known as financing costs. ACV: Stands for the Actual Cash Value of a trade-in vehicle. Clicks: The amount of miles with each mile representing one click of the odometer. Flipped: When the balance on your trade exceeds the actual value of the vehicle.