When car dealers refer to the various aspects of a car deal they usually use their own jargon, which can confuse the layman. Therefore knowing the meanings of these terms would help you when you visit a dealer to buy used and new cars. The following are some of the most common and widely used terms in the business of car dealership.
1. ACV stands for Actual Cash Value. The dealers use this term while referring to the total amount of money they actually invest in a particular business deal. The dealers need to differentiate this amount from the one they demand from the customers.
2. To Brick or to Spot Deliver: Often car dealers have to face situations where a client backs out after agreeing to buy a vehicle from them. In order to ensure that the deal is finalized, a number of car dealers get their customers to sign bank papers, even before the official approval of the loan.
3. A Packed or Loaded Payment: This is a slang term used by many car dealers. It describes a practice in which the customers are compelled to agree to buying supplementary products like service contracts, security devices and credit insurance. However the car dealers do not reveal the actual impact of these products on your monthly payments.
4. A Today Buyer: The dealers use this term to refer those customers who are well prepared to buy used/new cars on the very same day that they visit the dealer. Though this category includes a limited number of buyers, every car dealer aims to persuade their clients to do that. They try to persuade you to take the delivery of your used or new car on the very day you visit them and show an interest in buying any particular car.
5. Buyers Remorse: This term is used when the buyer starts having second thoughts about the purchase of his used or new car. It’s very common to find buyers wondering whether they got ripped-off after buying the car, or whether they can afford the monthly payments for the car. Most car dealers dread such situations because such doubtful buyers often tend to cancel the deal.
6. Quarterback: Most car dealers find it disgusting if you bring along someone who would help strike a good bargain. They often refer to these people as quarterbacks.
7. The T.O.: When a car sales person fails to close your deal, he may ‘T.O’ you (Turn you over) to a senior sales person or manager or someone more suitable, who can actually make you buy a used or a new car.