F&I terminology

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Across
  1. 3. Sales profit paid to the salesperson.
  2. 5. (1) The contracts or leases that have been purchased by the lending or leasing source but have not yet been paid for.(2) The Dealertrack DMS name for the general ledger receivables account for this money.
  3. 7. An amount of money offered by the dealership or the manufacturer to induce a potential buyer to purchase a specific model vehicle. A rebate may be used at the buyer’s discretion. It may be used to reduce the price of the vehicle, treated as cash down payment, or the buyer may take it as cash. A Rebate will NOT affect the Gross Profit because it does not affect the Price or Cost of the vehicle.
  4. 10. A unique number assigned to every vehicle and used as a means of identification. The VIN includes information about the year, make, model, and type of the vehicle.
  5. 11. Money given to the dealership. Often used by manufacturer to motivate dealers to sell slow moving vehicles. Dealer Cash affects the Commissionable Gross (salesman gets paid on it).
  6. 14. Products sold in addition to vehicle that affect back end gross. Aftermarket options are sold in the F&I Office and typically affect the F&I Gross. For example, etch, alarms, fabric care, paint care, tire warranties, and undercoating.
  7. 16. A type of payment for sales awarded to the dealership by the manufacturer. Usually a percentage calculated on the MSRP (or list) price of each vehicle that the factory will hold back until the vehicle is sold. The holdback payments are usually accumulated and then paid to the dealership every quarter. Note: The longer a car sits on the dealership's lot, the more interest they pay on the floor plan. This reduces the holdback profit a dealer would make when the car is sold.
  8. 18. A second individual responsible for repayment of a loan or lease agreement.
  9. 19. Insurance designed to protect the owner of a vehicle from loss as a result of any physical damage caused by or to the vehicle. Liability insurance covers any damage caused by the vehicle to other property. Collision insurance covers any damage to the vehicle resulting from an accident. Comprehensive insurance covers any damage to the vehicle, whether or not it is by accident. Lending sources require comprehensive insurance on financed and leased vehicles to protect against loss to their collateral.
  10. 20. National Auto Dealers Association.
  11. 21. The amount for each vehicle on which the flooring source charges interest. See Floor Plan.
  12. 22. A bonus paid by the factory to the dealership to sell a particular vehicle. An incentive will affect the House Gross. It is usually not accounted for in a deal.
  13. 23. The value assigned by the dealership to an item in inventory.
Down
  1. 1. Products sold in addition to vehicle that affect front end gross. Accessories are sold at the time of vehicle sale, and are not disclosed on F&I Forms separately from the vehicle price. The salesperson typically receives the commission for the sale of accessories, rather than the F&I office.
  2. 2. Changes to the Cost of a vehicle at the time of sale based on promised services or equipment. The dealership pays for Adds to Costs. Affects the Front End Gross. For example, bank fees, WEOs, dealer cash, etc.
  3. 4. Mechanical repairs and appearance work performed on used vehicles prior to sale and added to vehicle cost. This is usually done to help sell the car. For example: mechanical fixes, dent repair, etc. The Cost of work is rolled into the vehicle cost and can be viewed in Cost Disclosure. Reconditioning work reduces the front end gross.
  4. 6. An entry made at time vehicle is stocked in, which increases vehicle cost, and accrues money for unexpected charges, or ensures minimum profit. The Hard Pack is used to protect profit and motivate higher gross. The Hard Pack is reflected in Front End Gross as Cost.
  5. 8. The lowest interest rate at which a lending source will fund (purchase) a loan set up by the dealership.
  6. 9. A fee charged to the dealership by a financial institution purchasing a vehicle that will be leased to a customer. This fee is usually added to the capitalized cost of the vehicle and becomes part of the total monthly lease payment that the customer must pay.
  7. 12. A virtual addition to cost designed to protect profit. For example: add money to cost to cover possible repairs after sale, unaccounted for WEOs, or depreciation. The Soft Pack is deducted from the Commissionable Gross.
  8. 13. The sum of Commissionable Gross + F&I Gross + Pack + Holdback + Incentive.
  9. 15. Manufacturer’s Suggested Retail Price. The MSRP is stored in the MSRP (for new vehicles) or List (for used vehicles) field on the Vehicle Information Entry record. It will display as List on the Retail Deal screen and MSRP on the Lease Deal screen.
  10. 17. The fair market value of a used vehicle. The amount the dealership believes the vehicle can be wholesaled for. Usually applies to the trade-in vehicle on a car deal and based on the Kelley Blue Book or NADA.