BABYSITTER: Slang term
used for a co-signer or co-buyer on an automobile contract.
BACK END: Back end is
the contract which is being sent to the bank for financing, where extra
"hidden" profit is made by the dealer.
BEATER: See SLED.
BE BACK: Prospective
buyer who has been in the dealership once or several times. Did not buy at that
time and has returned for additional information or whatever.
BIRD DOG: One who
refers prospective customers to a particular dealership or salesman for a given
fee or compensation.
BOUNCE: To bounce
someone means to increase the sales price of the car, interest rate, monthly
payments, etc.
BRICKS: This term is
used to refer to one's house as security in taking out a second trust deed loan.
BROWNIE: To sell a car
to a customer as a result of going around and putting a piece of paper with a
message like "call me regarding your car" on car windows on the
street.
BUMP: See BOUNCE.
BUY RATE: This is the
interest rate that banks or financing institutions will charge on all contracts
being financed. It is a "secret" number between the lender and the
dealer which is the real amount of the interest rate that the loan starts out at
before the dealer increases it for its own extra profit.
CHISLER: A buyer who
constantly grinds the salesman to the best possible deal that he can get.
CLIMBER: A salesman
who can sell anything to anyone. One who is able to tackle a tough customer and
knock them over.
CLOSER: Usually a
pushy salesman whose job it is to "close" the deal with the customer
when the customer hesitates when dealing with the salesman.
COLD CANVAS: A form of
prospecting where a salesman or dealership solicits any and all prospective
buyers in any given area.
COME ON: This is where
the buyer is led to believe one thing and it turns out to be really something
else.
DE-HORSE: This is when
you take a customer out of his trade-in and let him temporarily drive a borrowed
car from the dealership until his purchase is completed.
DESKMAN or DESK:
A man who both figures and determines what kind of deal the dealership will make
to a customer.
DEUCE: This usually
refers to a $200.00 figure for whatever reason, down payment, trade-in value,
etc.
DIP: This is when the
customer needs additional or all of his cash down advanced by a finance company.
DOUBLE DIP: To finance
purchase between two or more loan companies.
DOWN: Short form for
down payment. Also used when a salesman is finished talking to a prospective
buyer. He is considered to be down and the next salesman is considered to be up
and in line to handle the next prospective buyer.
DOWN STROKE: Means
customer's down payment.
EDGY: This is a
customer who may or may not be able to get his car financed.
ETHER: Is a slang term
used in association with its actual application. For example, putting someone in
the ether. This is usually done in a closing situation and the customer is not
completely aware of what is happening.
EYE BALLER: Is a
flashy looking, bright colored, usually a sporty type automobile.
FLAKE: Is a customer
who usually has bad credit, little or no money down. It is usually a waste of
time trying to put a deal together for him.
FLIP: This is to
convert a buyer from financing his automobile through his own bank or credit
union to financing through the dealership.
FULL BORE: To sell a
car for the full sticker price with no discount.
GOLD BALLS: One who
has excellent credit and usually a considerable down payment.
GRAPE: This is a very
easy buyer. He normally goes along with anything anyone tells him.
GREEN PEA: This is a
new salesman or sales business manager.
GRINDER: This is a
buyer who, no matter what the salesman offers, wants more for less.
HEN: Older type
salesman who influences younger salesmen (adversely).
HIGH BALL: A figure
given to a prospective customer which is an inflated value of his trade-in in
order to get the customer to return to the dealership to purchase his new car.
HIGH PENNY: To adjust
a customer's monthly payment. For example: from $101.13 to $101.93. It is safe
to assume that if the customer will pay $101.13 for a car payment, he will pay
$101.93 without giving it a second thought.
HOME RUN: When maximum
profit has been made on a deal or when the sales business manager has sold the
customer all the insurance he has available.
IRON: This is an old
used car valued at nothing more than the price of iron.
KINK: A problem with a
deal due to "miswriting", misrepresentation, misquoting, or
mishandling.
LAID AWAY: A customer
who has paid the maximum price for as many items (like accessories, rust
proofing, extended warranty, financing and credit insurance) as can possibly be
sold on an automobile.
LAY DOWN: This is a
customer who says yes to everything. They "lay down" and get run right
over.
LINER: A salesman
whose responsibility is to settle a customer on one particular car, get a
commitment of some type from the customer, regardless of how ridiculous it is,
and then turn the customer over to his T.O. man, sales manager or mother.
LOW BALL: This is a
sales figure or tenative price given to a customer who has acknowledged the fact
that he is not going to purchase an automobile at this time and wants to shop
this figure against other dealerships. This is normally an unrealistically low
figure and one that the automobile can not actually be purchased for.
MICKEY: Slang term
used to describe a down payment loan that is arranged by the dealership. This is
referred to as completing a deal in Mickey Mouse way.
MOTHER: See T.O.
MAN.
MOUSE HOUSE: Slang
term used for a finance company.
NICKEL: Refers to
$500.00 for either trade value, purchase price, cash down, etc.
PACK: There are two
interpretations of this. First, it is used in figuring a salesman's commission,
depending on the individual dealer they will deduct anywhere from $75.00 to
$250.00 from the gross profit of the deal and pay the salesman his commission
figured on this difference. Second would be when the salesman or sales business
manager would quote a monthly payment to a customer and increase the actual
amount by 5 or 10 dollars to leave room for Credit Life, Accident and Health
Insurance.
PENCIL: This has two
applications. First, a sales manager will pencil a salesman's deal by crossing
out the customer's offer and penciling in the figure that he wants to get for
that car. The second application is used when a salesman or sales manager
changes the selling price or trade-in allowance and covers it up with an
increase in the customer's monthly payment because of the additional cost he
expects to pay for Credit Life, Accident and Health Insurance.
PIPE SMOKER: A
customer who smokes a pipe, gives no commitments whatsoever, usually grinds the
salesman to his last thread and doesn't buy the car after all.
PUT TOGETHER: This
means much the same as "laying someone away". In other words the
maximum gross profit to be made on that deal was accomplished.
RESERVE: Sometimes
thought of as a "kickback" the bank gives the dealer for setting up
the loan. The income a dealership realized on a contract in excess of the
finance source's discount rate. For example: If the bank is going to charge
$600.00 in finance charges on a given contract and the total finance charge to
the customer on this contract is $1,000.00, the dealership will realize $400 in
"reserve money" but the customer thinks the interest is all being
charged by the bank.
RESIDUAL: This is the
termination value of an automobile that is being leased. The number on the lease
contract may be real or simply made up.
ROLL BACK: To work a
deal backwards. Instead of working with the purchase price and trying to
determine a monthly payment, you would start with a known monthly payment and
try to determine a selling price. It also means to "roll back" the
odometer on a car to make it worth more money - highly illegal.
RULE OF 78: A
mathematical formula used in figuring a rebate of unearned charges or premium,
when these charges were pre-computed and pre-paid. Once referred to as "78
ways we get to keep your money".
SLED: Reference quite
often given to a customer's old trade-in which is usually "beat up"
and worth little or nothing.
SLIDE RULER: A buyer
who is a specification nut. He does not deal in generalizations when prices are
quoted. They must be exact and justified most of the time. This buyer will have
a slide ruler or a pocket calculator with him to calculate his own sales tax and
total sales price.
SPEAR: Think of it
like in the movies when the Indian would "spear" a fish in the stream
for his dinner. This is just a method used in getting a customer onto a dealer's
lot. For example: Stopping a man on the street and telling him that you would
give him some outrageous figures for his trade-in if he would just come down to
the dealership today and take a look at what you have to offer.
SPOT DELIVERY: This is
when all phases of the purchase and delivery are completed the same day. This
may be with or without any kind of credit check or approval.
STICKS: Reference
given to the borrower's furniture he puts up as collateral on a small loan, such
as when he borrows the money for the down payment on the car he is getting ready
to buy.
STRAW PURCHASE: This
is when a third party buys an automobile and finances it in his name for some
else (who will be the actual driver) because of that other person's age, bad
credit, or lack of credit, etc.
STROKER: An individual
who gives the impression that he wants to buy a car, but really doesn't have the
means to do so.
STRONG: This word has
two possible meanings. When used in reference to an automobile, it indicates
that the car is a good seller and therefore, an above average profit can
normally be made on it. The second application would refer to a sales
individual, be it salesman, sales manager, or Sales Business Manager, in
reflecting his ability to do his required job (i.e., aggressive, pushy).
STUD: See second
application of STRONG.
"SUM OF THE DIGITS":
Another term used for the "RULE OF 78"
- a formula used in figuring rebates, once characterized as "78 ways we get
to keep your money".
SWITCH: To change a
customer from buying one car to another for several reasons: availability,
possible profit, etc.
THIRD BASEMAN: An
individual who accompanies a prospective buyer because the buyer feels he is
better versed in haggling over the price of the car and/or knows more about the
car mechanically, thereby decreasing the chances of getting stuck with a
"lemon".
TIRE KICKER: This is
normally an individual who doesn't want to buy a car, but just wants to look. He
walks in, touches the merchandise and doesn't want to talk to anyone.
T.O. (TURNOVER): The
procedure used in selling where the salesman or liner turns a prospective buyer
over to another salesman or sales manager to close the sale.
T.O. MAN: This is the
individual to whom a LINER will turn a
customer over.
TOAD: Reference given
to a customer's trade-in; a worn-out piece of machinery that is just
"sitting there" like a toad.
TOWER:
In a “tower” store, this is where management sits and monitors the
floor for sales activity, so called because it is usually elevated slightly
above the showroom floor level. Sales
and F&I number
are usually monitored and/or manipulated from the tower’s
computer.
TRIP:
To trip a car means to deliver the automobile to the prospective
buyer.
U.G.:
To unconditionally guarantee re-purchase of a conditional sales contract
whenever that contract should become overdue.
UNDER-ALLOWANCE:
To give a
customer less for his car than it is actually worth.
UNWIND:
To take back a car that is already delivered and void all papers that
were used in reference to its delivery, as though the sale never happened at
all.
UP:
System used in greeting prospective customers.
The salesmen’s names are listed and as the top man on the list greets a
prospective buyer, his name is crossed off and the next salesman becomes the
“up man”.
UP-RATE
:
To increase an individual’s rate on his automobile insurance, either
due to an error when initially rating the customer, or a difference in the
customer’s driving record from what was originally stated.
UPSIDE
DOWN:
This condition exists with a buyer when he wants more on his trade-in
that the car is worth.
WALKING
FIGURES:
When the salesman knows for sure that the customer will not buy a car at
this time because he wants to check out some other dealerships.
The salesman will give him a ridiculously low figure to try to beat, know
that, in the end, he will have to come back to him.
WANBIT:
Write up contract for delivery.
WATER:
This is the false equity shown on a deal that a customer is supposed to
have in his trade-in. For example:
Showing on the purchase order $1500 in equity on a ‘69 Ford
when he actually only has $1,000.
WHEELS:
An Automobile.
WHITE:
The Department of Motor Vehicles Current Registration car for a
customer’s trade-in.
WINDOW:
Refers to the retail price posted on the window of new car as set forth
by the Federal Government and for which the vehicle cannot be sold over.
WHOLESALE:
The method used in selling a customer’s trade-in or purchasing used
cars through an individual or at an auction.
WOOD
:
See STICKS.
WOULD
YA, COULD YA:
A practice used by salesmen in getting a commitment from a customer. In
other words, “Would you buy this car if I could get it for the price you want
to pay?”
YO
YO
: See SPOT DELIVERY
