Dealer Dictionary

A charge identified by a lessor for originating or acquiring a lease. Whether it applies, its amount, and whether it is paid upfront or included in the gross capitalized cost should appear in the written lease disclosures.

An appraisal term for a vehicle's current cash value under the appraiser's assumptions. A dealer, insurer, and outside buyer may produce different values because their purpose, condition adjustments, and market inputs differ.

Separate products or services such as protection products, etching, tracking, accessories, or service contracts. Ask for each item's cash price and do not accept a charge for a product you did not agree to buy.

A standardized measure of credit cost, expressed as a yearly rate. APR reflects the interest rate and certain credit charges under Truth in Lending rules, so APR and the note interest rate are not necessarily the same.

A larger payment due at the end of some credit agreements after smaller scheduled payments. The contract and Truth in Lending payment schedule should identify the amount and due date.

Sales shorthand for asking a buyer to increase a price, payment, down payment, or other offer. The label does not explain which underlying number changed.

The interest rate a lender quotes to a dealer for financing a consumer's purchase. The dealer's offered financing may differ, and the dealer may receive compensation depending on its arrangement with the lender.

A dealership document commonly used to itemize the vehicle, price, trade, fees, taxes, add-ons, and balance. Its name and contractual role vary, so compare it with every document that will govern the final transaction.

In a lease, gross capitalized cost is the agreed vehicle value plus any other items capitalized under the agreement. Adjusted capitalized cost is the gross amount after the capitalized cost reduction; it is one input used to calculate scheduled payments.

The stage when a seller asks for a commitment or signature. A closing question does not change your need to review the complete price, financing, products, and documents.

A used vehicle marketed under a certification program. The certifier, inspection, warranty provider, coverage, and eligibility rules depend on the written program; a dealer program and a manufacturer program are not automatically equivalent.

An unlicensed dealer who poses as a private seller. Warning signs can include multiple vehicles for sale, a seller name that does not match the title, or resistance to completing the state title process.

A manufacturer invoice or similar reference amount associated with a vehicle. It does not establish the dealer's complete net economics because programs, credits, expenses, and timing vary and may not be visible to the buyer.

A term used for some manufacturer-to-dealer payment arrangements. Programs and amounts vary, and a holdback estimate does not reveal the dealer's complete cost or create a buyer entitlement to a particular price.

Compensation a dealer may receive in dealer-arranged financing, including compensation connected to the difference between a lender's buy rate and the consumer's contract rate. The structure and amount depend on the lender-dealer arrangement.

A manufacturer-disclosed charge associated with transporting a new vehicle to the dealer. Confirm how it appears on the window sticker and make sure a differently named dealer charge is not being confused with it.

A charge that may be due at scheduled lease end under the lease agreement. The amount and any conditions or waivers are program- and contract-specific.

A dealer charge described as covering document or processing work. State rules and labels differ, so include it in the written itemized out-the-door total when comparing sellers.

Cash or credited value paid upfront that reduces the amount financed in a purchase. Verify that the contract applies the exact amount and separately identifies any trade credit, rebate, or fee.

A name some dealers use for a document recording work, accessories, repairs, or other promises due after the sale. Document names vary; the important step is putting the exact promise, deadline, responsible party, and cost in a signed deal document.

The difference between a vehicle's current value and the payoff amount on its debt. Positive equity means value exceeds payoff; negative equity means payoff exceeds value.

A separate contract for specified repair or service coverage. A service contract is not the same as a manufacturer's warranty, and its administrator, coverage, exclusions, deductible, claims process, cancellation, and transfer terms vary.

The dealership function that completes financing and transaction documents and may offer optional products. Verify that every number and selection matches the written deal before signing.

Inventory financing a dealer may use to acquire or hold vehicles. The dealer's actual balance, interest, credits, and carrying decisions are private and variable, so lot age does not guarantee a discount or reveal a minimum price.

A negotiation worksheet that may display vehicle price, trade value, down payment, and monthly payment together. Changing one box can affect the others, so the worksheet is not a substitute for an itemized out-the-door price and complete financing disclosures.

A product intended to address some difference between an auto debt balance and the amount paid after a covered total loss. GAP may be insurance, a waiver, or another debt-cancellation product, and the provider, exclusions, limits, cancellation, refunds, and claims rules are contract-specific.

A contract for the right to use a vehicle for an agreed period and conditions rather than buying it at the start. Required disclosures cover items such as amount due at signing, payment schedule, total of payments, gross and adjusted capitalized cost, residual value, rent charge, mileage, early termination, and purchase option where applicable.

A ratio comparing the amount of credit to a stated vehicle value. The value source and included financed items matter, so ask the lender what amount and valuation it used.

A dealer-added price amount above the manufacturer's suggested price. It is one part of the seller's offer, not a tax or government charge.

A lease-end charge for miles above the contract allowance. The per-mile amount, measurement, purchase of extra miles, and exceptions depend on the lease agreement.

A decimal input sometimes used to express the lease's rent-charge calculation. The complete lease cost still depends on capitalized cost, residual value, term, payments, and other disclosed charges.

The manufacturer's suggested retail price shown for a new vehicle. It is a reference, not a promise that the transaction price will be above or below it.

The amount by which a vehicle's loan payoff exceeds its current value. In a replacement transaction, that amount may be paid separately or included in the new amount financed if approved and disclosed.

Changing, disconnecting, or misrepresenting an odometer or mileage record. Compare the displayed mileage with the title, disclosures, maintenance records, inspection findings, and available history records.

The total cash price to take delivery, including the vehicle, dealer products, dealer fees, taxes, and government charges shown in the quote. It is essential for price comparison but does not replace APR, finance charge, total of payments, or other financing disclosures.

Presenting optional products or changed terms inside a monthly payment without clearly disclosing each product's price and the complete financing effect. A payment alone cannot show what was added.

An inspection of a used vehicle by an independent mechanic selected by the buyer before purchase. It can assess current condition that a title record, history report, certification, or test drive may not reveal.

A contract charge that may apply when credit is paid before scheduled maturity. Whether one is permitted or included depends on the agreement and applicable law.

An incentive that reduces a qualifying buyer's price or amount due under stated terms. Eligibility, expiration, vehicle applicability, and compatibility with promotional financing vary.

A state title brand generally used after a salvage vehicle is rebuilt and meets that state's requirements. Inspection, registration, insurance, and disclosure rules are state-specific, and the brand does not establish repair quality or current condition.

A safety issue addressed through a manufacturer recall campaign under NHTSA oversight. A vehicle history report is not a substitute for checking the exact VIN in the official NHTSA recall lookup.

Residual value is the end-of-lease value used in the base periodic payment calculation. A purchase-option price is separately disclosed and may differ from the residual value.

A state title brand associated with a vehicle reported as salvage or meeting that state's definition. Branding, rebuild, registration, inspection, and insurance rules vary by state.

Delivery of a vehicle before dealer-arranged financing is final. If financing is not accepted, the dealer may later request changed terms; the contract and state law determine the parties' options.

An industry term for some manufacturer-to-dealer incentive structures tied to performance levels. Programs, measurements, timing, and dealer position are variable and generally not buyer-verifiable.

The period over which scheduled loan payments are due. A longer term can lower the scheduled payment while changing finance charge, total of payments, payoff timing, and negative-equity exposure.

A phrase sometimes used when approval or a financing term is said to depend on buying another product. The facts and governing rules matter; request the claimed condition in writing and verify it directly with the named lender or appropriate regulator.

A state-issued ownership record for a vehicle that can identify the owner, lien information, and title brands under that state's system. Transfer, branding, electronic-title, and registration rules are state-specific.

Concealing or losing a title brand through improper transfers, false documents, or differences between title systems so a damaged vehicle appears to have a cleaner record.

A state-specific reduction in the taxable amount that may apply when a trade-in is part of a purchase. Eligibility, tax base, vehicle types, transaction structure, and documentation vary by state.

A vehicle transferred to a dealer as part of another transaction. The trade credit, payoff, positive or negative equity, and any state-specific tax treatment should be shown as separate line items.

A vehicle with a prior owner or use history. Warranty status, certification, Buyers Guide terms, title history, recalls, and current condition are separate checks.

A compilation of records available to a provider. NMVTIS reports focus on state title and brand data, latest reported odometer information, and certain junk, salvage, and insurance total-loss records; they are not a complete accident or repair history and do not establish current condition or recall status.

A vehicle identifier commonly containing 17 characters for modern vehicles. Use the exact VIN to match the vehicle, advertisement, quote, title, recall lookup, history records, and purchase documents.

The required label on a new vehicle showing manufacturer information such as suggested retail price, equipment, and other required disclosures. A separate dealer addendum may list dealer-installed items or markup.