Resources
Car Dealer Glossary
Plain-English definitions of the terms, abbreviations, and concepts independent car dealers run into every day — from DMS and FBMP to OMVIC, MMR, and F&I.
A
- All-in Pricing
- An advertising rule (required in Ontario by OMVIC and considered best practice elsewhere) stating that any advertised vehicle price must include every fee the buyer is required to pay, with the only exclusions being HST and licensing. The intent is to prevent surprise fees at the deal table.Read more →
- AutoTrader
- AutoTrader is a major online vehicle marketplace in Canada and the US. Dealers syndicate inventory to AutoTrader through outbound feeds — typically generated automatically by their DMS — to reach high-intent in-market buyers.
B
- BHPH— Buy Here Pay Here
- A dealership business model where the dealer also acts as the lender, financing the customer in-house and collecting payments directly. BHPH lots typically serve credit-challenged buyers and require careful collections software.
- Bill of Sale
- The legal document that records the transfer of a vehicle from dealer to buyer. A compliant bill of sale lists buyer and seller information, the full vehicle description and VIN, an itemized all-in price, all required disclosures, warranty terms, and any cooling-off provisions.
C
- Carfax
- Carfax is a vehicle history reporting service. Dealers buy Carfax reports to verify a vehicle's accident, ownership, service, and odometer history before listing it for sale, and customers expect Carfax reports as part of the buying process.
- Certified Pre-Owned
- A used vehicle that has been inspected, refurbished, and certified by either the original manufacturer or a recognized program, typically backed by an extended warranty. CPO vehicles command a premium over a comparable non-certified used vehicle.Read more →
D
- Days on Lot
- The number of days a vehicle has been listed for sale at a dealership. Days on lot is one of the most important inventory health metrics — vehicles that sit too long tie up capital and eventually need to be repriced or wholesaled.Read more →
- Deal
- A specific transaction in progress between a dealer and a customer for a specific vehicle. A deal record tracks the vehicle, the customer, the negotiated price, trade-in value, financing terms, F&I add-ons, and the final paperwork through to delivery.
- DMS— Dealer Management System
- A dealer management system is the software platform an auto dealership uses to run day-to-day operations — inventory, leads, deals, financing, invoicing, accounting, and reporting. A modern DMS unifies these functions into a single connected workflow instead of stitching together spreadsheets and disconnected tools.
F
- F&I— Finance and Insurance
- F&I refers to the back-end of the deal — financing, extended warranties, gap insurance, paint and rust protection, and other add-on products. F&I is typically the most profitable single department in a dealership.
- FBMP— Facebook Marketplace
- Facebook Marketplace is a free peer-to-peer listings platform inside Facebook that has become one of the highest-volume channels for used car sales. Facebook does not offer a vehicle bulk listing API, so dealers automate FBMP posting using browser companion apps that pull data and photos from their inventory system.
- Floorplan
- A revolving line of credit a dealer uses to finance vehicle inventory. Each vehicle on the lot is collateral for the floorplan loan; when the vehicle sells, the floorplan amount on that car is paid down.
G
- Gross Profit
- The difference between what a dealership sold a vehicle for and the total cost (acquisition price plus reconditioning, transport, and pack). Front-end gross is the profit on the vehicle itself; back-end gross is the profit on F&I products attached to the deal.Read more →
H
- Holdback
- A percentage of MSRP that a manufacturer rebates to the franchise dealer some time after the vehicle is sold. Holdback is most relevant on new car franchise lots; independent used car dealers don't see it directly.
I
- Inbound Feed
- A data import into a dealer's DMS that pulls leads, messages, or pricing intelligence from third-party platforms back into the dealer's systems. An inbound lead feed lets a dealership manage every customer inquiry from one centralized inbox.
K
- Kijiji Autos
- Kijiji Autos is the dedicated automotive marketplace operated by Kijiji in Canada. Dealers reach Kijiji buyers by syndicating their inventory through an outbound feed from their DMS, the same way they syndicate to AutoTrader and Facebook.
L
- Lead
- A potential customer who has expressed interest in buying a vehicle — by submitting a website inquiry form, sending a message on a marketplace, calling the dealership, or walking onto the lot. Leads are tracked and nurtured in the dealer's CRM until they convert into a deal or drop off.Read more →
- Lien
- A legal claim against a vehicle held by a lender, government, or service provider that must be satisfied before clear title can transfer to a new owner. Dealers run lien checks on every trade-in to make sure they aren't accepting a vehicle with unpaid loans attached.
M
- MMR— Manheim Market Report
- Manheim Market Report is the wholesale market valuation index used by dealers to estimate what a vehicle is worth at auction. MMR values are commonly used as a baseline when appraising trade-ins and pricing inventory.
- MSRP— Manufacturer's Suggested Retail Price
- The price the original manufacturer suggests selling a new vehicle for. MSRP is mostly relevant on new car lots; on independent used car lots it appears as a historical reference rather than the actual transaction price.
O
- OAC— On Approved Credit
- OAC is the abbreviation Canadian dealers add to advertised payment offers to indicate that the quoted financing is contingent on the lender approving the buyer's credit application. Without OAC, an advertised payment could be misleading.
- OMVIC— Ontario Motor Vehicle Industry Council
- OMVIC is the regulator for motor vehicle dealers and salespeople in Ontario, Canada. Every Ontario dealer must be registered with OMVIC and follow its rules around all-in pricing, vehicle history disclosures, advertising standards, and bill-of-sale requirements.Read more →
- Outbound Feed
- A structured data export from a dealer's DMS that syndicates inventory to a third-party marketplace like AutoTrader, Kijiji Autos, CarGurus, or Carpages. Outbound feeds keep listings on every channel automatically in sync with the master inventory record.Read more →
R
- Recall
- A formal request from a manufacturer or government regulator to fix a defect on previously sold vehicles. Dealers should check for open recalls on every used vehicle before sale and disclose any known recalls to the buyer.
- Reconditioning
- The work a dealer does to a recently acquired vehicle to make it lot-ready — mechanical inspection, repairs, detailing, photos, and any required safety inspection. Reconditioning costs are a key input to pricing and trade-in valuation.Read more →
S
- Stock Number
- The internal identifier a dealership assigns to every vehicle it acquires. The stock number is used internally to reference the car across inventory, deals, repair orders, and accounting — independent of the VIN.
T
- Trade-in
- A used vehicle a customer offers as partial payment toward a vehicle they are buying from the dealer. The dealer appraises the trade, applies its value as a credit on the new deal, and either resells the trade or sends it to wholesale auction.Read more →
V
- VIN— Vehicle Identification Number
- A 17-character code that uniquely identifies every motor vehicle. The VIN encodes manufacturer, model year, plant, body style, and engine details. Modern dealer software uses VIN decoding to auto-fill vehicle records the moment a new car arrives on the lot.
W
- Wholesale
- Selling a vehicle to another dealer or to a wholesale auction rather than to a retail customer. Used car dealers wholesale vehicles that don't fit their retail mix or that have sat too long on the lot.
- Window Sticker
- The printed information sheet a dealer attaches to a vehicle's window listing the price, key features, and disclosures. A modern DMS generates window stickers automatically from the inventory record so they always match the live online listing.Read more →
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