Previous Best Practices which are now called Felonies!
In most cases the customer must sign at least ___ documents acknowledging and accepting the price of the vehicle, aftermarket items, and F&I products.
Three
Difference between a "Warranty" and a "Vehicle Service Contract"
A warranty is provided by the manufacturer only, while a service contract is provided by a third party.
The total amount a lender will finance which includes all taxes, fees, and products.
Line 5 Call
Y.E.S. is an acronym for this phrase.
The name of the national governing body for franchised auto dealers.
Federal Trade Commission (FTC)
The practice in which a payment quoted to the customer exceeds the payment needed to purchase the vehicle at the negotiated price.
Payment Packing
A common phrase that should never be used to describe a Vehicle Service Contract's level of coverage.
Bumper-to-Bumper
Generic name for the lender who finances our floor plan.
Captive
The name of the automotive regulatory agency in the State of Texas.
OCCC (Office of Consumer Credit Commissioner)
The three elements of an enforceable contract are...
Offer, Acceptance, Consideration
Practice of including a product in the amount financed or capitalized cost without the customer's knowledge or consent.
Product Stuffing
GAP is an acronym for this phrase.
Guaranteed Asset Protection
Name of the credit bureau lenders use which gives more weight to a customers vehicle payment history.
Auto FICO
Term for a customer purchasing a vehicle with the intention of giving it to someone else to drive and make the payments.
Straw Purchase
Term for non disclosure of rebates and raising the sales price to offset the difference and increase profit on a sale.
Scooping Rebates
The practice of lowering the agreed upon APR for a customer in order to convince them to purchase ancillary protection products.
Trading Rate for Product
Term used on a VSC when the deductible is waived for the customer returning to the dealer where the vehicle was purchased.
Disappearing Deductible
The tab in where we go to learn about all of our lender's terms and conditions.
Rates and Forms
The 300% Rule States...
100% of Products Offered
100% of Customers
100% of the Time
TILA is an acronym for this phrase.
Truth in Lending Act
The practice of including non-existent options on the used-car book-out sheet to lenders to artificially inflate the vehicle's value, and is considered bank fraud.
Power Booking
Highest level of a Vehicle Service Contract Coverage
Exclusionary
On leases, a Money Factor encompasses these three aspects of the transaction.
Depreciation, taxes, interest
In order to acquire the desired response from a customer we must appeal to this behavioral element.
Emotion
Capitalized Cost Reduction means...
Down Payment
Term used for a spot delivery of a vehicle when the Finance Manager knows the terms and conditions given to the customer will not be acceptable to any lender based on the consumer's credit history.
Yo-Yo Transaction
The most important action F&I Managers must initiate with every customer to maximize both profit and guest satisfaction.
Build Rapport
FICO is an acronym for this term
Fair Isaac Corporation
These two terms are at the forefront of every action we take as F&I Managers.
Compliance and Ethics
The Best F&I Master Class is provided by...
Innovation Financial Services