Just like in any industry, the automotive world is full of acronyms. Whether in the dealership, or in our offices, we use many of these acronyms to converse about the auto industry every day. Read on to learn about some of the most common acronyms and what they mean.

BDC: Business Development Center

A department in the dealership that brings in sales and service business by handling phone calls, scheduling appointments, and more. They also assist customers with any questions they might have such as what cars are in stock.

CIT: Contracts in Transit

After the customer signs the financing paperwork for their new car, the dealership waits for those documents to be processed so they can be paid by the bank. The quicker a dealership’s CIT, the sooner the dealership gets paid.

CRM: Customer Relationship Management

CRM software helps dealerships manage customer information so they can provide the best customer service and bring in more business.

CSI: Customer Satisfaction Index

A metric that measures how satisfied customers are with a dealership’s service, prices, etc. It is usually based on information gathered from customer surveys.

DMS: Dealer Management System

A software platform used to help the dealership manage things like sales, inventory, parts, and finances. At Reynolds, we provide one of the industry’s leading DMS solutions.

F&I: Finance and Insurance

Refers to the department in the dealership that handles loans, insurance, and add-ons.

GM: General Manager (also General Motors)

The GM oversees the dealership’s sales and F&I staff. GM is also used to refer to General Motors, an automotive manufacturer.

KPI: Key Performance Indicator

Values used to measure the success of a dealership. Examples of KPIs include the number of sales per employee, revenue growth, inventory turnover rates, and gross profit per vehicle.

MSRP: Manufacturer’s Suggested Retail Price

A manufacturer’s recommendation for the price of a car. This is also sometimes called the Sticker Price.

NADA: National Automobile Dealers Association

An American trade organization that represents car and truck dealerships. You can read more about NADA’s yearly trade show, the biggest in our industry, in this post.

OEM: Original Equipment Manufacturers

Manufacturers who are the original producers of the parts of a vehicle. Think GM, Ford, BMW, Honda, etc.

RO: Repair Order

When a car is brought into the dealership for service, an RO is written detailing the work done on the vehicle and the total cost.

ROI: Return on Investment

The ratio between net profit and the total cost of the investment. Dealers calculate ROI to evaluate their dealership’s profitability.

VIN: Vehicle Identification Number

A unique code used to identify every car. With a car’s VIN you can find information on when and where a car was manufactured, its make and model, history, and more.

Read more about common automotive industry terms from these past posts: Learn the Dealership Lingo 2.0: Back-End Personnel to Know, Learn the Dealership Lingo 2.0: Front-End Personnel to Know, Learn the Lingo: 20 Dealership Terms to Know.

To learn more about Reynolds, the automotive industry, and to view open positions, visit our careers page.