Actual Cash Value, usually referring to the actual value of a trade in vehicle.

A method that all banks use for computing finance charges on a contract.  The add-on formula is the amount to be financed times the add-on rate times the number of years equals the finance charge.

Annual Percentage Rate; this is a federally-adopted standard way of computing interest or finance charges for all loans so they may be compared easily.

This means that the vehicle has no guarantee whatsoever; you buy it, it is yours; if it falls apart when you drive off the lot, you are stuck with it anyway.

Slang term used for a co-signer or co-buyer on an RV contract.

Two definitions:

1. The contract which is being sent to the bank for financing, where extra “hidden” profit is made by the dealer; the back end profit occurs because the dealer gets a kickback from the bank just for setting up the loan there instead of somewhere else.

2. The profit made in the finance office by selling extending warranties, insurance, and other soft add-ons.

See UNWIND.

A rough estimate of the sales figure of the cost of the RV.

Where a dealer advertises a low price on a vehicle that it may not have and then when asked about it, they switch the prospect to another vehicle, saying the advertised one was sold, etc.

Prospective buyer who has been in the dealership once or several times.  Did not buy at that time and has returned for additional information or whatever.

See SLED.

This is a legal form to bind insurance coverage until a regular policy is issued.

One who refers prospective customers to a particular dealership or salesperson for a given fee or compensation.

Means the buyer is a senior citizen.

Refers to Kelly Blue Book, NADA or similar value published book that states the wholesale and retail value of any given motor vehicle, usually going back about six years.

To bounce someone means the dealer unexpectedly increases the sales price of the RV, interest rate, monthly payments, or some combination of them by a small amount under the theory that the buyer won’t walk away from the deal over a small increase in the numbers.

Two definitions:

1. A room, normally the F&I Business Manager’s office, where soft add-ons are sold or put into the deal and the deal is finalized and signed before delivery;

2. The living quarters of an RV that sits, like a box, on top of the vehicle chassis.

This term is used to refer to one’s house as security in taking out a second trust deed loan.

To sell an RV to a customer as a result of going around and putting a piece of paper with a message like “call me regarding your RV” on RV windows on the street.

See BOUNCE.

A consumer’s credit report.

This is a customer who is over obligated financially.

This is the interest rate that banks or financing institutions will charge on all contracts being financed.

A RV that the manufacturer or selling dealer bought back, usually because it was a lemon, and then gets resold, either by the same dealer or through a RV dealer auction where it can be recycled back into the marketplace, without disclosure of its true history or defects, see also Laundered Lemon.

Where, subsequent to the actual sale, the buyer regrets making the purchase for a personal reason; if the reason relates to a sales fraud aspect by the dealer, it is not buyer’s remorse, even though many dealers will claim it is.

A dealer who does their own financing, i.e., the customer buys at the dealer and makes the loan payments to the same dealer; commonly done by small dealers with little inventory and high prices and sale terms.

A vehicle with excessive rust.

An RV dealership with lots of RV inventory.

This means that a third-party lender has accepted the finance contract assignment from the dealer and paid the dealer for it.  The dealer has their money and this is usually the point of no return as far as the dealer is concerned, i.e., the dealer will most often refuse to unwind the deal.

Two definitions:

1. the maximum interest rate that can be charged on an auto contract, which is ___% per annum;

2. to complete a deal or to CAP it out is to compute the profit, make sure all trade papers are enclosed, DMV forms properly filled out, etc.

This is the total figure of a lease vehicle before the depreciation or residual value is computed.

This is the amount to be financed on any given contract.

This comes in the event of an early pay off.  The bank will debit or charge back the dealer’s finance reserve, or finance income account, the amount of unearned income.

The frame of a vehicle, may or may not include the engine as part of it, depending on the chassis manufacturer and its construction process.

A vehicle that is clean, immaculate, good looking, mechanically sound.  Just plain good merchandise.

This is what a financing source will sometimes do when it approves or looks for only the excellent or above average customers.

Two definitions:

1. A regular buyer who constantly grinds the salesperson to the best possible deal that he can get;

2. An individual who floats between dealerships doing nothing but wholesaling RVs between dealers.

The disability and life insurance policies that are sold in the finance office, F&I, or Business Office.

See BOX.

One who is able to tackle tough jobs or tough customers; for example, used in the phrase “No Hill for a Climber” to describe a salesperson who is so good at selling that they can sell anything to anyone.

To put the final touches on a possible RV purchase.  In other words, to close or complete a deal.

One who closes the deal with the buyer, usually following the salesperson’s failed efforts to get the buyer to buy the vehicle, through the use of high pressure negotiation or intimidation.

A form of prospecting where a salesperson or dealership solicits any and all prospective buyers in any given area.

This is where the buyer is led to believe one thing and it turns out to be really something else.

This is an RV dealer sales force that sells both new and used RVs as opposed to an RV dealer having a split force where some sell new only and some sell used only.

A deal is normally conditioned when, as it stands, it is not a deal but it can be a deal if certain conditions are met, such as additional down payment, co-signer, income verification, etc.

This is a co-signer or co-buyer.

See CHERRY.

This is when a salesperson would sell their own personal RV, or a friend’s RV, at a dealership, possibly vs. selling one of dealership’s RVs.

A salesperson who takes a trade in without the dealer’s knowledge from a customer and buys it personally and sells it at a higher price thus making money for himself and not the dealership.  He generally hides it at a distant curb.

The file folder where all of a buyer’s sales paperwork ends up being kept by the dealer.

This is a charge the dealer adds to the price of the RV for preparing it for sale after receiving it from the factory.

This is when a dealer will exchange one of its RVs with another dealer to meet a customer’s likes or requirements in color, equipment or model.

This is money to be used toward the down payment on a RV.  It is to be paid after delivery of the RV and there is no interest computed on this amount.

This is when you take a customer out of their trade-in and deliver to him the purchased RV whether financing is arranged for or not, in order to take the customer out of the marketplace and get him emotionally “invested” in the delivered RV.  The purchase may or may not have been completed prior to delivery; in other words, it may or may not be a “spot delivery” situation.

The sales manager working the buyer’s deal, i.e., who both figures and determines what kind of deal the dealership will make to a customer, often presented by the salesperson to the buyer.

See DESK.

Usually applies to a used RV where it is cleaned up and made to look as new as possible.

Refers to $1,000.00.

This is when the customer needs additional or all of their cash down advanced by a finance company.

This is the difference between the suggested selling retail price and the actual purchase price of the RV.

The name given to the dealer employee who stands at the doorway of the finance manager office, blocking it, when the buyer is sitting in the F&I office and the final paperwork is being signed, an intimidation tactic often used by the salesperson on the deal or the floor manager when the dealer knows there is something in the transaction that the customer does not know or understand and may object to.

This is a customer who has never been in the dealership before, has never been solicited to come to the dealership.  They just walk in on their own.

To finance purchase between two or more loan companies.

Two definitions:

1. The down payment;

2. Used when a salesperson is finished talking to a prospective buyer.  They are considered to be “down” and the next salesperson is considered to be “up” and in line to handle the next prospective buyer. Upon arrival, the prospect is called the “up.”

Means customer’s down payment.

This is a salesperson or dealership employee’s demonstrator.

Refers to $200.00.

These are manufacturer paint codes; when a customer is referred to by a 2 or 3 digit number or a letter followed by numbers, it may refer to the customer’s race.

This is a customer who may or may not be able to get their RV financed.

When a vehicle is worth more than what is owed on it, the difference is called the owner’s equity in the vehicle.

This is the GM paint code for black paint. It is sometimes used by a dealer to refer to the race of a prospective buyer as a slang term. It may also occur with other franchised dealers using their manufacturer paint code for the color black.

Often called etch-a-sketch, theft guard or a similar term, it is a high profit soft add on product promoted as a product that will reduce the chance of a vehicle being stolen, to apply it the dealer uses a chemical that eats, or etches, into one or more glass windows a series of numbers that the dealer claims can enable police to find the owner of the RV if they recover it after it was stolen, usually sold for hundreds of dollars by an RV dealer, the product itself can be found on the internet as a self-installed kit that will cost about $20, the window etch scheme makes maximum RV dealer profit at little cost and some say etch gives little or no real benefit to the consumer.

A slang term used in association with its actual application.  For example, putting someone “in the ether.”  This is usually done in a closing situation and the customer is not completely aware of what is happening.

A flashy looking, bright colored, usually a sporty appearing RV.

Also written as “F&I”; stands for finance and insurance and refers to the sales department that arranges for financing a sale with a third-party lender such as a bank or credit union, etc. The department is actually little more than a person who performs the task and who is often called the F and I Manager or Business Manager, even their job is to primarily to sell the customer on the idea of letting the dealer set up their financing and also to sell the customer the soft add on products. This is where most dealers make their highest profit margin.

When the RV dealer’s F&I position is filled by an employee who has not previously worked in the F&I job, it is called the employee’s first “chair,” meaning his first time in the job.

A technique used by some RV dealers to get the sales papers signed by the consumer without the consumer realizing that the numbers on the papers have been increased above what was orally discussed with the consumer, such as, the dealership Finance Manager holds the stack of sales papers still with one hand planted in the middle of the top document while pointing to the signature line with the other hand and asking the buyer to just sign here and here and here, etc., using their hand to cover up an area of the sales document where numbers appear that the dealer does not want the buyer to see. Then the dealer sets that sales paper aside and puts another one in front of the consumer and again puts one hand in the middle of the page while pointing to the next signature line with the other hand. The process is repeated through all the sales documents so that the buyer does not realize that the sales figures were changed on the earlier document, in other words, the repetitive routine disguises the fraud that earlier occurred in the process. It appears to the consumer that the Finance Manager is being helpful in holding the page still but in reality the technique is used to deceive the customer into believing that the numbers, such as the price, etc., are the same as what was talked about earlier when, in reality, they are not. It is sometimes also called a five finger spread or five finger push.

Similar to the five finger close. It is another technique used to get the sales papers signed without the consumer knowing that the numbers on the papers have been changed. In this tactic the Finance Manager holds the stack of sales papers still with one hand planted in the middle of the top document while pointing to the signature line with the other hand and asking the buyer to just sign here and here, etc., thus using their hand to cover up the area of the document where the numbers appear that the dealer does not want the buyer to spot. As each individual sales paper is signed, the dealer folds up the bottom edge where it was signed, revealing the next page and the customer is again asked to sign. The process is repeated through all the documents being signed. It appears to the consumer that the Finance Manager is being helpful in holding the page still but in reality they are using the technique to deceive the customer into believing that the numbers, such as the price, etc., are the same as what was talked about earlier when, in reality, they are not. Sometimes called a five finger spread or five finger push.

The amount of profit on a deal, where the first word represents the amount in $1,000 increments, i.e., $5,000 profit.

Held or founded in trust or confidence, holding in trust, depending on public confidence for value or currency.

A customer who usually had bad credit, little or no money down.  It is usually a waste of time trying to put a deal together for him.

This usually applies to a multi purchase at a substantial discount from the manufacturer’s suggested retail price.

Two definitions:

1. To convert a buyer from financing the vehicle purchase through their own prearranged financing source to financing through the dealership’s lending source so the dealer can make profit on the financing arrangement;

2. Switching the buyer from one vehicle to another one.

This is when the dealership’s banker or the manufacturer finances the purchase of the RV that it has in its inventory.

This is where a used RV is superficially cleaned up quickly, removing any evidence of the identity of the prior owner such as the original factory new RV owner manual and warranty and any repair records in the vehicle, then the dealer puts it out on the dealership used RV lot for sale.

To sell an RV for the full MSRP sticker price with no discount.

A customer’s trade-in which has no liens on it.

Same as DOOR POP; this is a customer who has never been in the dealership before, has never been solicited to come to the dealership.  They just walk in on their own.

An RV that is mechanically and appearance-wise very presentable.  It is therefore placed in the front line of the dealership’s display lot.

Two definitions:

1. The amount of profit made on the vehicle alone;

2. the customer’s down payment whether he pays it himself or a down payment loan is arranged through a finance company.

General Agent — this is an insurance agent who usually has several appointments with various insurance companies handling various lines of insurance.

Guaranteed Auto Protection, a high profit soft add-on product that is similar to insurance which offers protection when your vehicle is destroyed by accident and the cash value of your vehicle is less than what is owed on the vehicle loan. Often called insurance, in many states it is not legally insurance at all.

This is a finish that is normally put on a new RV’s paint after it has been cleaned up and made ready for sale.

One who has excellent credit and often a sizable down payment.

This is a very easy buyer.  They are no problem to close and goes along with anything anyone tells them; when it comes to selling them an RV at the maximum profit to the dealer, this buyer can be squashed like a grape.

A new salesperson.

This is a buyer who, no matter what the salesperson offers, wants to get more and pay less for it, i.e., they “grind down” the salesperson.

The amount of profit that is realized on a deal prior to deducting sales and delivery expenses.

Interior of vehicle.

Means Gross Vehicle Weight Rating; the maximum permissible weight of this motor home. The GVWR is equal to or greater than the sum of the unloaded vehicle weight plus the net carrying capacity.

Means Gross Combined Weight Rating; the value specified by the motor home manufacturer as the maximum allowable loaded weight of this motor home with its towed trailer or towed vehicle. Towing and braking capacities may differ. Refer to the RV builder and chassis manufacturer manuals for complete information.

Means Gross Axle Weight Rating; the maximum permissible loaded weight a specific axle is designed to carry.

Means Gross Towed Weight; the maximum permissible loaded weight of a trailer or car that this motor home has been designed to tow. This cannot be increased by changing the trailer hitch.

The act of the dealer finance person placing a finance deal with one of the dealer’s financing sources.

The down payment, the actual cash down.

A document in the sales paperwork that the dealer has the customer initial, usually along the right margin, which says that the customer has been made aware of a long list of specific disclosures and disclaimers, many of which may not have taken place at all. Then when the buyer later discovers an act of dealer fraud and returns to complain, the dealer will pull out the Heat Sheet and point to where the buyer signed or initialed saying that the act did not occur or they were informed, etc. In other words, like a heat sink used in soldering metals, the Heat Sheet takes the buyer complaint and neutralizes it.

Older salesperson who acts as a “mother hen” and often influences younger sales people adversely.

A figure given to a prospective customer which is an inflated value of their trade-in in order to get the customer to return to the dealership to purchase their new RV.

To adjust a customer’s monthly payment.  For example, from $101.13 to $101.93.  It is safe to assume that if the customer will pay $101.13 for an RV payment, they will pay $101.93 without giving it a second thought.

Where the finance sales person’s computer is rigged to automatically increase, i.e., roll up, numbers in the transaction to a higher number without tipping it to a dollar increase. Doing this on every transaction can create $20,000 to $40,000 of extra profit a year since it adds 1 to 98 cents to every payment. Also called High Penny or Penny Pumping.

Normally a large or gas guzzling, hard to sell RV.

When maximum profit has been made on a deal or when the sales business manager has sold the customer all the insurance he has available.

The phrase used by an RV dealer to describe a sale that they do not know will be financed by a third-party lender but hope to make it work by pulling in favors at the lender to get the financing approved by the lender.

Two definitions:

1. A name used for the dealership itself, also called the store;

2. When referring to a recreational vehicle it is the portion of the RV above the chassis itself and is also called the box.

A purchase that a member of the dealership’s management has originated usually with no commission to be paid to the salesperson.

This is a customer’s purchase which is financed through the dealership.

Air Conditioning.

When several variables are involved such as customer coming up with enough money down, sufficient appraisal for their trade, etc.

When the buyer’s trade in vehicle is not worth what is owed on it; sometimes called “negative equity” or being upside down.

This is the billing price that a dealership pays for a new RV from the factory.

Two definitions:

1. A generic reference to any vehicle;

2. An old used RV valued at nothing more than the selling price of its parts.

A problem with a deal due to miswriting, misrepresentation, misquoting, or mishandling.

The dealer’s “supplemental” or “addendum” price sticker.  Used for dealer add-on products like pin stripes, ground effects, rust-proofing, fabric protection, etc., which may or may not actually have been installed on the RV.

This is credit life, accident and health coverage which is included in a vehicle contract or small loan.

A customer who has paid the maximum price for as many items . . . accessories, financing and insurance . . . as can possibly be sold on an RV.

A customer who has paid the maximum price for as many items . . . accessories, financing and insurance . . . as can possibly be sold on an RV.

A customer who says yes to everything.

When an RV is bought back by the manufacturer and then resold without disclosure that it was bought back because of defects, thus hiding its defect history from subsequent owners.

As in “giving Leg” it means getting a “leg up” on the buyer. Describes the sales person quoting an inflated and false proposed monthly payment number to the buyer in order to lock them in on a false number in order to leave room for the finance sales person to pack into the deal additional profit-making products for the dealership, whether or not the customer knows it is happening to them. See Payment Packing.

Where the RV dealer alters the buyer’s credit application income or expense data without the customer knowing about it and then submits the falsified application data to a third-party lender for loan approval; may also include telling the lender that the vehicle being sold has optional equipment on it that it actually does not have, in order to increase the appearance of the vehicle’s value as collateral for the loan.

A salesperson whose responsibility is to settle a customer on one particular RV, get a commitment of some type from the customer, regardless of how ridiculous it is, and then turn the customer over to their T.O. man, sales manager or mother.

To take the normal monthly payment amount and load it up by falsely inflating it to a higher than necessary number in order to leave room for the finance sales person to pack into the deal added profit-making products for the dealership which the buyer may not even know about. See Payment Packing.

Usually a used RV delivered prior to approval.

This normally is the legal owner of an RV who is listed on an insurance policy.  In the event of a loss, their balance would be paid first prior to the policy holder receiving any funds.

A person who accompanies the buyer and helps them negotiate or looks over the deal with or for the buyer.

The sales people who stand around outdoors on the RV lot, usually in small groups of two or three, waiting for a customer to come along so they can pounce on them to make a sale.

An RV that has been sitting on the dealer lot for a long time and parts have been “cabbaged” (cannibalized) off of it for use in other RVs.

Defects and failures that arise in an RV that has sat on the dealer’s lot for an extended time.

This is a sales figure or tentative price given to a customer who has acknowledged the fact that he is not going to purchase an RV at this time and wants to shop this figure against other dealerships.  This is normally an unrealistically low figure and one that the RV cannot actually be purchased for.

The various lengths of time that a vehicle may be financed for, such as 72, 60, 48 months.

Slang term used to describe a down payment loan that is arranged by the dealership.  This is referred to as completing a deal in Mickey Mouse way.

This is a deal with very little profit in it.  The dealership normally pays a minimum or flat commission to the salesperson for a deal of this type.

Modified turn over.  This is a sales system which is similar to the straight T.O. system with the exception that the salesperson will handle all the aspects of the sale as long as he is able to close the deal himself.  If for any reason he is unable to do this, he will then turn the customer over to their sales manager before he is allowed to leave.

This is the name that is given to a new RV’s window sticker.  It was Senator Monroney who introduced the bill to Congress requiring a posted selling price on all new RVs.

One who knows little or nothing about purchasing, financing, or insuring an RV and really doesn’t care to learn.

See T.O. MAN.

Slang term used for a finance company.

See MOOCH.

The RV manufacturer’s suggested retail price.

Means Net Carrying Capacity; the maximum weight of all occupants including the driver, passenger, personal belongings, food, fresh water, LP gas, tools, tongue weight of towed vehicle, dealer installed accessories, etc., that can be carried by this motor home. Normal variation of materials may cause the Net Carrying Capacity to be 200 lbs. higher or lower than stated. (NCC is equal to or less than GVWR minus UVW).

When the buyer’s trade in vehicle is not worth what is owed on it; it is a negative number which is added to the deal, sometimes by increasing the sales price of the vehicle being purchased and thereby hiding the existence of the negative equity and its amount.

Refers to $500.00.

A contract written by the dealership where there is no guarantee of the balance by the dealership in any way.

Refers to the monthly payments that would be required for the purchase of any given RV.

A contract for which the customer takes delivery of the RV and agrees to pay the balance usually within 5 to 7 days.

This is when the dealer normally controls the financing of the RV through a source where he does not participate in the finance reserve.

Two definitions:

1. Used in figuring a salesperson’s commission, depending on the individual dealer they will deduct anywhere from $75.00 to $250.0 from the gross profit of the deal and pay the salesperson their commission figured on this difference;

2. When the salesperson or sales business manager would quote a monthly payment to a customer and increase the actual amount by 5 or 10 dollars to leave room for Credit life, Accident and Health, etc., i.e., they are “packing” the deal with high profit soft add-ons.

There are two applications of this term, the first being to report the sale of a vehicle and to place the paper report-of-sale on the RV.  The second application refers to the conditional sales contract on an RV.  The sales business manager is in charge of placing or hanging the paper.

The finance manager, e.g., the F&I person on the deal.

This is when all the necessary papers are completed and signed by all parties concerned.  The report of sale is placed on the vehicle and for all intents and purposes the vehicle is considered to be sold.  However, the customer does not take physical delivery of the vehicle.

One who makes payments on a conditional sales contract whether or not he has signed said contract.

Where the sales person quotes a higher than necessary monthly payment number to the buyer in order to overcome objections when the finance sales person jacks up the payment even more because they are adding into the deal, with or without the buyer knowing it, soft add on products like Etch or extended warranties, etc. For example, the sales person knows that the normal monthly payment amount might be $275 but they deliberately tell the buyer that it will be $325 so that there is $50 of room for the finance sales person to pack the deal with added-cost soft add on products. A more deceptive way of payment packing is to get the buyer to agree on a monthly payment number without the buyer knowing the loan length. That way the finance sales person can create more profit in the deal by simply upping the loan length without the buyer even realizing that the overall cost to the buyer is higher than it otherwise would be.

Pre-Delivery Inspection; an inspection performed by the dealership’s service department to ensure that a new vehicle is functioning properly prior to delivery.

Two definitions:

1. A sales manager will pencil a salesperson’s deal by crossing out the customer’s offer and penciling in the figure that he wants to get for that RV;

2. When a salesperson or sales manager changes the selling price or trade-in allowance and covers it up with an increase in the customer’s monthly payment because of the additional cost he expects to pay for Credit Life, Accident and Health.

See PICK-UP PAYMENT.

The terminology “pick-up” originated from a time when the customer did not have all of their down payment but was able to come up with the necessary amount, usually within thirty days at which time he was able to “pick-up” their RV.  This practice has been altered a little at the present time and the pick-up payment is now referred to as the deferred down payment and the customer may or may not take delivery of the RV prior to this amount being paid.

Refers to an RV certificate of ownership, as its color is pink.

A customer who smokes a pipe, gives no commitments whatsoever, usually grinds the salesperson to their last thread and doesn’t buy the RV after all.

This term is used in reference to an individual who is interested in possibly buying a potential customer’s trade-in, be it on a wholesale or retail basis.

Stands for personal note or promise to pay.

Purchase order form used by almost all dealerships initially writing up the sale of an RV.

When the dealer submits false information to a lender about a vehicle’s features, such as listing CD Player when there is none or leather seats when the seats are cloth, etc., in order to inflate the vehicle’s value so that the lender will increase the amount of the loan, which enables the dealer to sell the vehicle at a higher-than-normal price.

Method used in figuring the finance charges on a loan or conditional sales contract.  This is when the finance charge, computed for the term of the contract is then added to the amount, which is known as the total note, and is then divided by the number of months in the contract to arrive at a customer’s monthly payment.

To clear one’s credit prior to delivering the RV.

To divide a finance charge or insurance premium on an equal monthly basis to determine the earned amount.  For example, to find out how much insurance premium is earned on a twelve-month policy where the premium is $240.00 and the policy has run for three months you would divide $240.00 by twelve to get a monthly rate and multiply this amount times the number of months that the policy has run.  The earned amount in this case would be $20 X 3 or $60.00.

A person who is willing and able to buy an RV within the next seventy-two hours.

Front end damage on a vehicle.

This is used similarly to a check to purchase an RV, except that there are normally stipulations printed on the draft which must be met before the bank named on it will pay . . . such as guarantee of title must be enclosed or pink slip and current registration may be required.

This has two applications: 1. when the Sales Business Manager or Sales Manager puts together the loose ends of a nonexistent deal and make it a deal; 2. same as “laying someone away” a buyer, i.e., in other words the maximum gross profit to be made on that deal was accomplished.

Refers to $2,500.00.

The Dealer Reserve Schedule used by F & I salesperson to determine the amount of the kickback they will get from the bank or other lender who is going to finance the sale, in exchange for bumping the interest rate up above the minimum rate that the lender actually wants to get on the loan.

A check; be it personal or business.

A contract in which the dealership guarantees repayment to the finance source in the event the customer should default.  The terms of this recourse agreement can vary.  However, the most common is called a ninety day repurchase.  In the event of delinquency, the finance source has eighty-nine days to get the vehicle back on the dealership’s lot and request payment in full of the net balance.

The income a dealership realized on a contract in excess of the finance source’s discount rate.  For example, if the bank is going to charge $600.00 in finance charges on a given contract and the total finance charge to the customer on this contract is $1,000.00, the dealership will realize $400 in reserve.

The normal way the average individual purchases an RV.

To deliver a customer’s RV to him.

Two definitions:

1. In sales, to work a deal backwards.  Instead of working with the purchase price and trying to determine a monthly payment, you would start with a known monthly payment and try to determine a selling price.

2. Name for a vehicle whose odometer has been tampered to reduce the miles shown.

As in to Roll the Term. It means to stretch the buyer’s loan out to a longer term without telling the buyer that it is happening in order to keep the monthly payment inside the buyer’s target while still increasing the dealer’s profit in the deal.

The “report of sale” of a vehicle.  In other words, licensing it in the new owner’s name.

Tires.

A mathematical formula used in figuring a rebate of unearned charges or premium, when these charges were pre-computed and pre-paid.

Means the customer sales paperwork has been signed and put in an envelope which was licked and sealed and put in their hand, usually with the dealer sales person telling them that the envelope contains important sales papers that the customer should take home and put in a safe place. If the dealer has packed the deal with soft add on products that the buyer does not know about, doing this discourages the buyer from looking at the numbers to make sure they are what the sales person said they would be; if the dealer staples the envelope, it may mean that the dealer is definitely trying to hide something printed on the sales papers by making it more difficult for the papers to be removed without tearing them, usually right in the spot where the false number is typed.

Describes the activity of a dealer salesperson trying to sell replacement vehicles, new or used, to people who have brought their vehicle into the service department for repair work to be done.

What a green pea does to learn how senior salespeople sell, i.e., they follow them around and watch.

An individual who has admitted he will not buy an RV until he has shopped other dealerships to be sure he is getting the best possible price.

This term is used when referring to the computation of rebates on insurance policies prior to their expiration.  The mathematical formula is the same as the Rule of 78.

When the customer commits to the buy, the salesperson loudly announces, sometimes on the dealer’s public address system, that “[buyer’s name] has just purchased a [year make model vehicle].” That is the “shout out” moment which is followed by immediate applause from all the other sales persons in the showroom, a tactic to solidify the sales staff attitude and also to encourage a buyer’s commitment to the sale, often used in slasher sales.

See CLOSER.

Generally, means the same thing as SEAL THE DEAL.

Slang job title for highly aggressive temporary sales person or sales staff that a dealer brings in to stage a quick sales event, usually over a weekend, with the specific purpose of selling “stale” vehicles that have been sitting on the dealer lot for more than the normal number of days unsold; this type of sales team is usually flown in from out of state and typically is made up only of very “strong” and pushy and aggressive sales people whose sole objective is to make sales happen one way or another.

A buyer who is a specification nut. He does not deal in generalizations when prices are quoted. They must be exact and justified most of the time. This buyer will likely have a pocket calculator with him to calculate his own sales tax and total sales price, etc.

Combination packet that has been made up in advance of closing a deal so that all necessary papers needed for a customer to sign, in order to buy the RV and transfer ownership of their trade-in, are kept together.  This packet of standard forms includes the Notice of Sale or Transfer of Interest and Federal Odometer Disclosure, the Bill of Sale, Authorization for pay-off, Pay-Off Adjustment, and Power of Attorney.

This is what one salesperson does to another.  For example, a customer will come to the dealership, go through the motions of checking out an RV, not really deciding whether or not to buy.  The buyer returns at a later date and asks for the salesperson who initially dealt with him.  The salesperson who greets the buyer the second time tells the customer that the first salesperson is not there, which may or may not be true, and tells the buyer that he (the second salesperson) can help complete the purchase of the vehicle and does.  The second salesperson then neglects to tell the Sales Manager of the first salesperson’s involvement in the deal so that he, who is the second salesperson, gets paid the entire commission on the deal, cutting out the first salesperson. The commission is supposed to be shared between the two but the second salesperson skated the deal.

A female customer or employee.

Reference quite often given to a customer’s old trade-in which is usually “beat up” and worth little or nothing.

A buyer who is a specification nut.  They do not deal in generalizations when prices are quoted.  They must be exact and justified most of the time.  This term comes from the buyer who would have a slide ruler or a pocket calculator with them to calculate their own sales tax and total sales price.

Spanish word which generally means the same thing as SEAL THE DEAL when the customer is of Hispanic heritage.

Reference usually given to a used RV as to its sale-ability.  This RV is referred to as being “soft”.  That indicates that there is little or no market for the RV and, if sold, the pricing is generally below the wholesale Bluebook value.

This refers to the items sold by the F&I Manager which increase the overall vehicle transaction price to the consumer but add no hard value to the goods being sold, which is why they are called soft add on items. They typically include such things as service contracts, Etch, disability insurance, wheel protectant, Gap insurance, etc. Many times, these additional items are preprinted on the sales and financing forms. This is where most dealers make their biggest profit margins in a deal.

To pull or run a credit report in such a way that it does not impact their credit score as opposed to a “hard pull.”

A method used in getting a customer onto a dealer’s lot.  For example, a salesperson stopping a person on the street and telling them that you would give them some outrageous figures for their trade-in if they would just come down to the dealership today and take a look at what you have to offer.

A bonus paid to a sales person as an extra reward for selling a particular vehicle.  It may be paid by the dealership itself or, in the case of a new vehicle, by the vehicle manufacturer. Often is between $50 and $250 but the amount will vary.

Sales commissions arising from one sale divided between two salesmen.

This is when all phases of the purchase and delivery are completed the same day.  This may be with or without any kind of credit check.

This refers to a vehicle on the dealer lot that the dealer thinks has been sitting unsold for too long.

Reference given to the borrower’s furniture he puts up as collateral on a small loan.

This method of selling is the oldest and probably the most widely used.  The salesman and usually only the salesman handles the complete transaction — from selling the RV to delivering it.

This is when a third party buys an RV and finances it in their name for the actual driver because of age, bad credit, or lack of credit, etc.

Reference given to the monthly payments on the conditional sales contract for the purchase of an RV.  For example, the strokes on that Thor RV are $450 a month.

Two definitions:

1. In reference to a particular vehicle, it means that the vehicle is a good seller and therefore, an above average profit can normally be made on it;

2. Referring to a sales individual, be it salesman, sales manager, or Sales Business Manager, in reflecting their ability to do their required job.

See second application of STRONG.

Another term used for the RULE OF 78 — a formula used in figuring rebates.

Also known as “steal the trade” is a sales process where the dealer effectively gets the trade in vehicle for a small fraction of its value by adjusting or misrepresenting numbers in the deal such that the buyer does not see or know it is happening.

To change a customer from buying one RV to another for several reasons, such as availability, possible profit, etc.

An individual who accompanies a prospective buyer because the buyer feels they may be better versed in haggling over the price of the RV and/or knows more about the RV mechanically, thereby decreasing the chances of getting stuck with a “lemon”.

This is normally an individual who doesn’t want to buy an RV, but just wants to look.  He walks in, touches the merchandise and doesn’t want to talk to anyone.

Stands for the tax and license required in the purchase of a given RV.

The time length from when the customer is first greeted to the time when the customer is first presented with the cost to buy or lease a vehicle.

Refers to the retail price posted on the window of a new RV.

Same as “Turnover,” The procedure used in selling where the salesman or liner turns a prospective buyer over to another salesman or sales manager to close the sale.

This is the individual to whom a liner will turn a customer over.

Reference given to a customer’s trade-in; a worn-out piece of machinery that is just “sitting there” like a toad.

The maximum permissible downward force exerted on the hitch ball by the towed vehicle coupler.

In a “tower” store, this is where management sits and monitors the floor for sales activity, so called because it is usually elevated slightly above the showroom floor level.  Sales and F&I numbers are usually monitored and/or manipulated from the tower’s computer.

To trip an RV means to deliver the vehicle to the prospective buyer.

The procedure used in selling where the salesman or liner turns a prospective buyer over to another salesman or sales manager to close the sale.

To unconditionally guarantee re-purchase of a conditional sales contract whenever that contract should become overdue.

To give a customer less for their RV than it is actually worth.

See NEGATIVE EQUITY or IN THE BUCKET.

To take back an RV that is already delivered and void all papers that were used in reference to its delivery, as though the sale never happened at all.

System used in greeting prospective customers.  The salesmen’s names are listed and as the top man on the list greets a prospective buyer, their name is crossed off and the next salesman becomes the “up man”.

To increase an individual’s rate on their RV insurance, either due to an error when initially rating the customer, or a difference in the customer’s driving record from what was originally stated.

When the buyer’s trade in vehicle is not worth what is owed on it; see UNDER WATER.

When the salesman knows for sure that the customer will not buy an RV at this time because he wants to check out some other dealerships.  The salesman will give him ridiculously low numbers for price, payments, etc., knowing that, in the end, he will have to come back to him because no other dealer will match the numbers.

This is the false equity shown on a deal that a customer is supposed to have in their trade-in.  For example, showing on the purchase order $1500 in equity on a 1969 Ford when he actually only has $150 equity.

A motor vehicle.

The Department of Motor Vehicles Current Registration for a customer’s trade-in RV.

Refers to the retail price posted on the window of new RV as set forth by the Federal Government and for which the vehicle cannot be sold over.

The method used in selling a customer’s trade-in or purchasing used RVs through an individual or at an auction.

See STICKS.

A practice used by salesmen in getting a commitment from a customer. In other words, “Would you buy this RV if I could get it for the price you want to pay?”

See SPOT DELIVERY.