Dealership Glossary Flashcards
Floor Plan Financing
A type of financing used by dealership to purchase and maintain inventory. It involves a line of credit to acquire vehicles for sale
DMS (Dealer Management System)
Software that helps manage various aspects of dealerships operations, including inventory, sales, finance and service.
Inventory Turnover
The number of times a dealership sells and replaces its entire inventory within a specific time period, often measured annually.
Wholesale Price
The price at which a dealership acquires vehicles from the manufacturer or at the auctions before any retail markup.
Back End Profit
The profit generated by the dealerships finance and insurance (F&I) department, including extended warranties, insurance, and financing.
Front End Profit
The profit made by the dealership on tens ale of the vehicle itself, including the difference between the invoice price and the selling price.
Hold Back
A portion of the vehicles sale price that the manufacturer returns to the dealership, typically a percentage of the invoice price.
Service Department
The division of a dealership responsible for vehicle maintenance, repairs and warranty work.
Parts Department
Manages the inventory, sale and distribution of automotive parts and accessories.
Fixed Operations
Departments within a dealership that generate revenue through service, parts and collision repair.
Variable Operations
Departments involved in selling vehicles, including new and used car sales.
CSI (Customer Service Index)
A metric used to measure customer satisfaction with the dealerships sales and services processes.
BDC (Business Development Center)
A department focused on managing customer inquiries, leads, and appointments, often handling online and phone communications.
Lot Management
The process of organizing and maintaining the dealerships vehicle inventory on the sales lot.
Fleet Sales
Selling vehicles in bulk to businesses, rental companies or government agencies.
