COMPLIANCE
This is the common name for the folder or physical file where all original, signed documents for a vehicle sale are stored.
What is the Deal Jacket?
Often mistakenly called an "extended warranty," this contract provides broader coverage for mechanical, electrical, and high-tech components.
What is a Vehicle Service Contract?
The amount of money paid to the dealer by a financial institute for completing funding on a vehicle purchase.
What is Dealer Reserve?
This stipulation is requested by the bank in order to prove the customer's ability to pay.
What is POI (Proof of Income)?
This event occurs when a lender refuses to fund a contract due to a missing signature, unverified income, or an over advanced amount financed, forcing the customer to return to the dealership to sign a new set of documents.
What is a Resign?
An item obtained from the customer used to prove they are that person.
What is an ID Card? (drivers license)
Often overlooked in a rush to print paper, this critical face-to-step involves asking discovery questions about driving habits and past ownership to build a "hook" for every product on the menu.
What is the Interview?
This acronym represents the average amount of money made on each deal for the F&I manager.
What is PVR (Profit Per Vehicle Revenue)?
These are the three primary national credit bureaus.
What are Equifax, Experian, and TransUnion?
This accounting metric tracks the number of days between a customer driving off the lot and the dealership actually receiving the cleared funds from the lender.
What is CIT (Contracts in Transit)?
A form with personal information provided by the customer pertaining to the financing of a new vehicle.
What is the Credit Application?
This product protects the customer from "negative equity" if their vehicle is totaled and the insurance payout is less than the loan balance.
What is GAP Insurance?
This acronym represents the average products sold on each deal for the F&I manager.
What is PPD (Products Per Deal)?
This credit event remains on a consumer's report for up to 10 years and often requires a "discharge" letter before a lender will consider a new loan.
What is Bankruptcy?
This process involves submitting the Manufacturer’s Certificate of Origin (MCO) or the previous owner's title to the DMV to officially record the new owner.
What is Titling?
This form must be filed if a customer provides more than $10,000 in cash in a single transaction.
What is IRS Form 8300?
The act of using a word track for when a customer says no to your menu presentation.
What is Objection Handling?
This percentage is a measurement of the Lender's Finance Charge over the course of a loan.
What is APR (Interest Rate)?
This ratio compares the customer’s monthly debt obligations to their gross income.
What is DTI (Debt-to-Income)?
This is the action an F&I Manager takes to officially request that the lender review the deal and release the loan proceeds.
What is Funding?
Under the Risk-Based Pricing Rule, this disclosure must be provided to the consumer to show their current standings with the 3 Bureaus.
What is the Credit Score Disclosure?
This is the term for the customer's monthly payment before any F&I products are added.
What is the Base Payment?
This ratio is calculated to find the max amount financed on a specific unit.
What is LTV (Loan-to-Value)?
If a customer’s credit pull shows a score of "N/A" or "0" because they have no open tradelines, no history of borrowing, and no public records, they are commonly referred to as having this type of score.
What is a Ghost Score?
This is specific command used to officially move the vehicle out of the dealership's active inventory and move the front-end and back-end profit into accounting.
What is Finalizing the Deal?