Variable Operations
This type of dealership operation includes vehicle sales, finance, and insurance.
(What is variable operations?)
MSRP stands for this term.
What is Manufacturer's Suggested Retail Price?
National, regional, and local promotions are all part of this broader marketing strategy.
What is automotive advertising?
APR stands for this financial term.
What is Annual Percentage Rate?
This federal law requires that all new vehicles display a sticker with pricing and feature details.
What is the Monroney Sticker Act?
The main difference between variable and fixed operations is that variable operations focus on these types of transactions.
What are revenue-generating sales transactions?
A sales process often ends with this step, where the salesperson finalizes the deal.
What is closing?
This advertising medium remains one of the most expensive but has the widest reach.
What is television?
F&I managers sell this type of coverage, which protects against loan shortfalls in the event of vehicle loss.
What is GAP insurance?
This consumer protection law ensures that warranties are clearly disclosed to customers.
What is the Magnuson-Moss Warranty Act?
This metric is commonly used to measure the success of variable operations.
What is gross profit?
This sales technique involves presenting customers with a higher-priced or premium option.
What is upselling?
A dealership that falsely advertises a low-price vehicle to lure customers in is engaging in this illegal practice.
What is bait-and-switch advertising?
The first F&I departments in dealerships were introduced in this decade.
What are the 1950s?
A dealership that refuses to honor a warranty claim despite repeated repair attempts may be violating this state-level law.
What are Lemon Laws?
Unlike fixed operations, variable operations rely on this factor for success.
What is customer demand or market fluctuations?
This federal regulation requires full disclosure of a vehicle’s price, fees, and financing terms.
What is the Truth in Lending Act?
Many dealerships form local advertising groups to share marketing costs, called this.
What are dealer advertising associations?
This federal law protects consumers from predatory lending practices.
What is the Fair Credit Reporting Act or FCRA?
The Gramm-Leach-Bliley Act (GLBA) requires dealerships to safeguard this type of customer information.
What is financial and personal data?
Name two key strategies dealerships use to increase profitability in variable operations.
What are upselling and F&I product sales?
Process mapping is used in automotive sales to improve this aspect of the dealership.
What is efficiency and customer experience?
This organization enforces truth-in-advertising laws for dealerships.
What is the Federal Trade Commission or FTC?
F&I managers must retain these documents for a legally required period after a sale.
What are loan agreements, contracts, and disclosure statements?
This act, passed after the Firestone tire recall, requires manufacturers to report safety defects promptly.
What is the TREAD Act?