Essential terms every car dealership professional should know.
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.
The physical or virtual space at an auction where vehicles are presented one at a time and sold to the highest bidder.
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 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 detailed inspection report describing a vehicle's mechanical and cosmetic condition, used by dealers to make informed buying decisions at auction.
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.
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 revolving line of credit dealers use to finance their vehicle inventory.
A federal regulation requiring auto dealerships to implement a written information security program to protect non-public customer financial data.
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.
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 real-time auction where vehicles are sold competitively through active bidding, either at a physical location, online, or through a combination of both.
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.
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 vehicle returned to a lender or manufacturer at the end of a lease agreement, commonly channeled into the wholesale market for dealer acquisition.
A maximum bid amount set in advance that allows the auction system to automatically bid on a dealer's behalf up to their limit.
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 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 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.
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.
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.
A form of fraud where criminals combine real and fabricated personal information to create false identities used to obtain auto financing.
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.
A structured, data-driven plan outlining how a dealership sources used vehicle inventory across multiple channels to meet sales goals.
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.
A unique 17-character code assigned to every vehicle at manufacture, used to identify it for titling, registration, history, and recall purposes throughout its life.
The price a vehicle would realistically bring in a dealer auction, as opposed to what a retail consumer would pay.
