Dealership Software Glossary
Understand the key operational and software terms used in modern automotive retail.
A
ACV (Actual Cash Value)
The true wholesale value of a vehicle, representing what a dealership is willing to pay for a trade-in or purchase at auction.
Automotive CRM
Customer Relationship Management software tailored for auto dealerships to track leads, manage follow-ups, and monitor the sales pipeline.
B
Back-End Gross
Profit generated in the F&I office through financing reserve and the sale of aftermarket products.
BDC (Business Development Center)
A specialized department within a dealership focused entirely on handling inbound leads, making outbound calls, and setting appointments for the sales floor.
BHPH (Buy Here Pay Here)
A dealership model where the dealer acts as both the seller and the lender. BHPH software helps manage inventory, financing, and payment collections.
Book Out / Book Value
The process of determining a vehicle's value using industry-standard guides (like Kelley Blue Book, NADA, or Black Book) to secure bank financing.
C
CSI (Customer Satisfaction Index)
A metric used by automotive manufacturers to measure customer satisfaction with a dealership's sales and service departments.
D
Desking
The process of structuring a car deal, calculating payments, trade-in values, taxes, and interest rates to present options to a buyer.
DMS (Dealer Management System)
The core accounting and operational software used by dealerships to manage financial ledgers, payroll, and overall business operations.
Doc Fee (Documentary Fee)
A fee charged by the dealership to cover the administrative costs of processing the paperwork for a vehicle sale.
DTI (Debt-to-Income Ratio)
A financial metric used by lenders to compare a customer's total monthly debt payments to their gross monthly income.
F
F&I (Finance and Insurance)
The department in a dealership responsible for arranging financing, selling extended warranties, gap insurance, and ensuring compliance.
Floorplan
A line of credit used by dealerships to finance their vehicle inventory.
Front-End Gross
The profit made directly from the sale of the vehicle itself, excluding F&I products or financing.
G
Gross Profit
The difference between the cost of the vehicle and its selling price. Front-end gross comes from the vehicle sale; back-end gross comes from F&I products.
I
Inventory Syndication
The automated process of distributing a dealership's vehicle inventory data and photos to various third-party listing sites and marketing channels.
L
LTV (Loan-to-Value Ratio)
The ratio of the total loan amount compared to the book value of the vehicle being purchased.
P
Pencil
A printed or digital worksheet presented to a customer showing the proposed terms of a vehicle purchase.
R
Reconditioning
The process of inspecting, repairing, and detailing a used vehicle to prepare it for sale on the lot.
RO (Repair Order)
The official document that tracks the work performed, parts used, and labor charged on a vehicle in the service department.
S
Stipulations (Stips)
Specific documents or proofs required by a lender before they will fund a car loan.
T
Trade-in Appraisal
The evaluation of a customer's current vehicle to determine its value as a trade-in toward a new purchase.
U
Up
Dealership slang for a prospective customer who walks onto the lot or enters the showroom.
V
VDP (Vehicle Details Page)
The specific page on a dealership's website or a third-party listing site that displays all the details, photos, and pricing for a single vehicle.
W
We Owe
A legally binding document outlining any equipment, repairs, or accessories the dealership has promised to provide to the customer after the sale.