Glossary

An auction with no minimum price or reserve; the vehicle sells to the highest bidder regardless of the final bid amount.

The fair market value of a vehicle at a specific point in time, based on year, make, model, mileage, condition, and current market demand.

Advanced Driver-Assistance Systems — technology built into vehicles to enhance safety and driving assistance, including features like automatic braking, lane keeping, and adaptive cruise control.

A professional certification from the Association of Finance and Insurance Professionals that validates an F&I manager's knowledge of compliance, ethics, and consumer protection laws.

Vehicles that have been in a dealer's inventory beyond the ideal selling window, typically 60 days or more, and are at risk of losing value.

The physical or virtual space at an auction where vehicles are presented one at a time and sold to the highest bidder.

A vehicle powered entirely by an electric motor and battery pack, with no internal combustion engine and zero direct emissions.

A measure of an electric vehicle battery's current capacity relative to its original capacity, expressed as a percentage.

A type of title issued when the original title is unavailable, backed by a surety bond that protects against future ownership claims.

A vehicle title that carries a special designation indicating the vehicle has been declared a total loss, flooded, rebuilt, or otherwise materially altered.

A dealership model where the dealer finances vehicle purchases directly, typically serving buyers with limited or no credit history.

A fixed price set by the seller at which a vehicle can be purchased immediately, bypassing the live auction bidding process.

A person who sources or scouts vehicles on behalf of a dealer, often attending auctions or visiting private sellers to identify quality acquisition opportunities.

A used vehicle that has passed a manufacturer or dealer inspection program and comes with a warranty and additional buyer protections.

A vehicle title with no brands, liens, or designations indicating prior damage, total loss, or ownership disputes.

A title that is free of any liens, legal claims, or financial holds, confirming the seller has full ownership rights to transfer the vehicle.

Insurance placed on a financed vehicle by a lender when the borrower fails to maintain required coverage, protecting the lender's interest in the collateral.

A detailed inspection report describing a vehicle's mechanical and cosmetic condition, used by dealers to make informed buying decisions at auction.

Completed vehicle sale contracts that have been signed but not yet funded by the lender, representing receivables in process for the dealership.

A classification category assigned to a borrower based on their credit score, used by lenders to determine interest rates and loan terms.

The illegal practice of selling vehicles as a private party while acting as an unlicensed dealer, typically to avoid consumer protection laws.

A metric measuring how many days it would take to sell a dealer's current inventory at the current rate of sales.

A high-speed electric vehicle charging method that delivers direct current directly to the battery, providing a significant charge in 20 to 60 minutes.

A percentage of a new vehicle's MSRP that the manufacturer pays back to the dealer after the sale, not reflected in the invoice price.

A wholesale vehicle auction restricted to licensed dealers, where vehicles are bought and sold outside of the retail market.

The markup a dealer adds to a lender's base interest rate on a financed vehicle, retained by the dealer as additional profit.

An arrangement between two dealerships to exchange vehicles from their respective inventories to meet a specific customer request.

The physical or digital folder containing all documents related to a vehicle sale, from the purchase agreement to financing contracts and compliance forms.

The process of structuring a vehicle deal, including price, trade-in value, down payment, and monthly payment, typically managed by a sales manager.

Tools and platforms that allow car shoppers to complete key steps of the buying process online, including trade-in valuations, financing applications, and payment calculations.

Dealer Management System — the core software platform used to manage a dealership's sales, finance, service, and inventory operations.

A dealer-charged fee covering the cost of preparing and processing the paperwork associated with a vehicle sale.

The digital processing and transfer of vehicle ownership documents, eliminating paper titles and streamlining the title management process for dealers and lenders.

The practice of analyzing a dealership's customer database to identify people with positive equity in their current vehicle who may be ready to trade up.

A vehicle purchased in bulk by a company, government agency, or rental company for business use, often resold into the used market after a defined service period.

A title designation indicating a vehicle was damaged by flooding, typically declared a total loss by an insurer due to water intrusion.

A revolving line of credit dealers use to finance their vehicle inventory.

An IRS and FinCEN form that dealers must file when receiving cash payments over $10,000 in a single transaction or related transactions.

A designation indicating a used vehicle has completed reconditioning and is fully prepared for retail display and sale.

A federal regulation requiring auto dealerships to implement a written information security program to protect non-public customer financial data.

A credit union or lender product that provides similar coverage to GAP insurance by waiving the remaining loan balance if a vehicle is totaled, rather than paying it as an insurance claim.

An F&I product that covers the difference between what a customer owes on their loan and the vehicle's actual cash value if it is totaled or stolen.

The final winning bid amount at an auction, so named for the auctioneer's hammer falling to close the sale.

A conditional auction result where the high bid did not meet the seller's reserve. The seller decides after the sale whether to accept, negotiate, or decline.

A measure of how quickly a dealer sells and replaces their vehicle inventory. Higher turn rates mean faster-moving stock and lower carrying costs.

A title designation indicating a vehicle has been declared unfit for road use and is intended for parts or scrap only.

A device installed in a financed vehicle that allows a lender to remotely disable the vehicle if the borrower misses payments.

State consumer protection laws that require manufacturers to replace or refund a new vehicle that has a significant defect the dealer cannot repair after a reasonable number of attempts.

A standard home or public electric vehicle charging method using a 240-volt connection, adding roughly 10 to 30 miles of range per hour.

A document from a lender confirming a vehicle loan has been paid in full and the lender no longer holds a financial claim on the vehicle.

A real-time auction where vehicles are sold competitively through active bidding, either at a physical location, online, or through a combination of both.

The ratio of a vehicle loan amount to the vehicle's actual value, used by lenders to assess financing risk.

A unique identifier assigned to each vehicle entered in an auction, used to track it through the sale process from check-in to post-sale paperwork.

The depreciation and carrying cost that accumulates on unsold vehicles that sit on a dealership lot too long without turning.

A designation indicating a vehicle's minimum selling price is at or near the platform's data-driven recommended value, signaling a motivated seller.

A federal law governing consumer product warranties that requires dealers and manufacturers to provide clear warranty terms and gives buyers the right to enforce them.

A vehicle that a manufacturer repurchased from a consumer, typically due to a lemon law claim or a persistent defect that could not be repaired.

The document issued by a vehicle manufacturer that serves as the original title for a new vehicle before it is registered for the first time.

The narrowing of profit margins that occurs when vehicle costs rise faster than retail prices, squeezing dealer profitability on each unit sold.

The federally required window sticker on new vehicles displaying the MSRP, standard features, optional packages, fuel economy ratings, and safety information.

The National Motor Vehicle Title Information System — a federal database that tracks vehicle title history, odometer readings, and total loss designations across state lines.

An auction format where vehicles are listed with no minimum price floor, meaning the highest bid wins regardless of the amount.

A standardized vehicle diagnostics system required on all cars sold in the US since 1996, used to monitor emissions, engine performance, and fault codes.

A vehicle returned to a lender or manufacturer at the end of a lease agreement, commonly channeled into the wholesale market for dealer acquisition.

A safety recall issued by a manufacturer that has not yet been completed on a specific vehicle, meaning the defect remains unaddressed.

Software updates delivered wirelessly to a vehicle's systems by the manufacturer, without requiring a dealership visit.

A vehicle with both a gasoline engine and a rechargeable battery that can be plugged in, allowing electric-only driving for shorter trips.

A preliminary assessment by a lender estimating the loan amount and terms a buyer may qualify for, typically based on a soft credit inquiry.

A maximum bid amount set in advance that allows the auction system to automatically bid on a dealer's behalf up to their limit.

The concern that an electric vehicle will run out of charge before reaching the destination or a charging station.

A title assigned to a vehicle that was previously declared a total loss but has been repaired, inspected, and deemed roadworthy by a state authority.

The process of preparing a used vehicle for retail sale, including mechanical repairs, detailing, paint correction, and any necessary safety work.

The process of reselling used, off-lease, or fleet vehicles through wholesale channels such as auctions, dealer networks, or online platforms.

A wholesale auction where lenders sell repossessed vehicles after a borrower has defaulted on their auto loan.

A vehicle that starts and moves under its own power, sufficient to drive onto and off the auction block, but with no representation of overall mechanical condition.

A list of vehicles scheduled to cross the auction block during a specific sale, published in advance so dealers can research and prepare bids.

A specialized auction where insurance companies and lenders sell total-loss, flood-damaged, or otherwise salvaged vehicles, primarily to licensed rebuilders and parts dealers.

A title designation assigned to a vehicle that an insurance company has declared a total loss due to damage exceeding a percentage of the vehicle's value.

A comparison of two related title brands: salvage indicates a total-loss vehicle not yet repaired; rebuilt indicates it has been repaired and reinspected.

An auction format where in-lane and online buyers compete simultaneously in real time, allowing dealers nationwide to bid on vehicles without being physically present.

A vehicle whose features, functionality, and performance can be updated, modified, or added through software rather than physical hardware changes.

The practice of delivering a vehicle to a buyer before financing has been fully approved and funded by a lender.

A device installed on vehicles sold to subprime borrowers that allows a lender to remotely disable the vehicle's ability to start if payments are missed.

The current charge level of an electric vehicle's battery, expressed as a percentage of its total capacity.

An auto loan extended to a borrower with a lower credit score, typically carrying higher interest rates to compensate for the lender's increased risk.

A form of fraud where criminals combine real and fabricated personal information to create false identities used to obtain auto financing.

Technology that collects and transmits vehicle data including location, speed, mileage, and performance metrics via wireless communication.

An auction designation indicating the physical vehicle title is not available at time of sale. The buyer purchases the vehicle knowing the title will follow within a specified timeframe.

The illegal practice of selling a vehicle without first transferring the title into the seller's name, creating a gap in the ownership record.

The legal process of transferring vehicle ownership from one party to another through the state DMV.

The fraudulent process of transferring a branded vehicle title through states with less stringent titling requirements to remove or obscure a negative designation.

The percentage of a vehicle's value at which an insurer declares it a total loss rather than paying for repairs.

A vehicle declared by an insurance company to be uneconomical to repair, resulting in a payout to the owner and the assignment of a salvage or total loss title brand.

A federal law requiring lenders to clearly disclose the terms and costs of credit, including the APR, total finance charge, and payment schedule.

A vehicle design where the body and frame are built as a single integrated structure, used in most modern passenger cars and crossovers.

The dealership manager responsible for used vehicle acquisition, pricing, inventory management, and wholesale decisions.

A structured, data-driven plan outlining how a dealership sources used vehicle inventory across multiple channels to meet sales goals.

A report compiled from multiple data sources that documents a vehicle's title history, accident records, odometer readings, and ownership background.

A contract sold in the F&I office that covers the cost of certain mechanical repairs after the manufacturer's warranty expires, commonly referred to as an extended warranty.

The process of permanently engraving a vehicle's VIN onto its glass surfaces as a theft deterrent and a value-added F&I product.