The Reynolds and Reynolds Company is a leading dealer services provider in the automotive industry, which can be an incredibly interesting industry to follow and learn about. As you start to get familiar with our business, you'll probably come across some terms you've never heard before. Never fear! We've got you covered with definitions for a number of words and phrases that will help you learn the lingo.

Actual Cash Value (ACV) — The cash value of the vehicle and it's condition when the consumer brings it in for trade. The ACV is assigned during the appraisal of the vehicle.

Back End/Fixed Operations — The parts and service departments typically are at the “back end” of the dealership building. Ideally, the revenue from these departments covers all of a dealership’s operating expenses, and the money they earn is more consistent, or fixed, over the course of a year.

Business Development Center (BDC) — This area handles any calls for the dealership, sets appointments for the sales and/or service staff, and helps resolve customer problems. Not all dealerships will have a BDC.

Core Part — These parts still have value when they are taken off a car during repairs. Dealerships can return them to the manufacturer and receive a rebate for their return. Many of these parts can be refurbished into new parts.

Counter — This section of the parts department generally is divided into two areas: a front counter that sells parts to retail customers and a back counter that serves technicians making vehicle repairs.

Deal – This is the term for the transaction of buying a vehicle at the dealership.

Deal Jacket — This folder contains all of the documents relating to the purchase and sale of a vehicle. Sometimes called a “car jacket.”

Desking a Deal — During a car sale, this is the process of presenting options to a customer in order to come to an agreement on the selling price, monthly payment, and financing terms for the car purchase.

Floorplan — This refers to money borrowed by the dealership to finance vehicle inventory. The dealer pays interest while the vehicle is still in inventory.

Front End/Variable Operations — The new and used vehicle sales, finance and insurance, and leasing and rental departments all are part of the “front end” of the dealership. As the name implies, these departments usually are found at the front side of the dealership. The money brought in by these departments can be very inconsistent, or variable, since sales of cars can be impacted by multiple factors outside of the dealership’s control.

House Deal — This type of car sale is made by the dealership’s management. In a house deal, the dealer pays no commission to a salesperson.

Lead — This is the term for information about a person who may be interested in buying a car.

Monroney Price Label — The Monroney Price Label Act mandates a window sticker be placed on all new vehicles. The sticker contains the description of the vehicle, equipment, options, and the manufacturer’s suggested retail price.

Obsolete Parts — These are parts in stock at the dealership that have no demand and no chance of sale.

Pink Slip — In most industries, a pink slip indicates someone was fired. In the dealership, this term refers to the certificate of vehicle ownership; it is a pink-colored form.

Pre-Delivery Inspection (PDI) — The pre-delivery inspection is part of the process of preparing a vehicle for display or delivery. Some manufacturers require proof the PDI has occurred and may compensate a dealer for the service. Also known as “make ready,” “prep,” or “get-ready.”

Prospect — This is the term for a customer who is willing and able to buy a car within the next few days or months.

Repair Order (R.O.) — The service advisor at the dealership creates this document when a car is brought in for service. When writing the R.O., the advisor records the customer’s complaint and gains authorization from the customer to work on the vehicle. Also known as a work order.

Service Drive — This is the area in the dealership where a service advisor meets with a customer to discuss what vehicle repairs are needed.

Split — Sometimes two salespeople end up helping the same customer buy a car. When this happens, they split the commission, and the salespeople both get credit for the sale.Pre-Delivery Inspection (PDI) — The pre-delivery inspection is part of the process of preparing a vehicle for display or delivery. Some manufacturers require proof the PDI has occurred and may compensate a dealer for the service. Also known as “make ready,” “prep,” or “get-ready.”