have you considered a corporation for your car dealer license ???

+++++

you have four choices

sole proprietor

partnership

llc

corporation

+++++

we suggest you always consider forming a corporation

good luck

thx

Charlotte

gotplates.com

800-901-5950

+++++

vehicle history reports are now mandatory for all car dealers

+++++

YES

July 1 all car dealers must make a vehicle history available

+++++

YES

All vehicles with history must have a red sticker posted on the car

+++++

YES

GotPlates.com is the only provider of Red Stickers for

VERIFIED CLEAN TITLE cars

+++++

YES

Any car buyer can run a DMV Approved Vehicle History Report for $ 10.

record price for used car sales ( 27 million dollars )

Jay Leno Quail Car Show - H 2013
Getty Images
Jay Leno holds court at The Quail car show in Monterey on Friday.

Jay Leno and Patrick Dempsey are among the stars at the automotive event, where cars with Hollywood histories have mostly fizzled.

PEBBLE BEACH, Calif – Vintage Ferrari sales are breaking records up in Monterey, Calif., this weekend, where the Cannes of the automotive world is underway.

On Saturday night, a 275 Ferrari N.A.R.T. Spyder hammered at $25 million (or $27.5 million, if you include the standard 10 percent commission). Another Italian beauty — a 1953 Ferrari 375 MM — sold on Friday night for slightly more than $9 million. Both sales went down at the RM Auctions sales.

PHOTOS: Hollywood’s Private Jets: From Oprah Winfrey to Tom Cruise, Who Owns What

Meanwhile, entertainment biz folks are thin on the ground here, where multiple events are taking place over a long weekend on the Monterey Peninsula. Car enthusiasts Jay Leno and PatrickDempsey did make the trek and milled around Friday’s $550-a-ticket car show at The Quail. Dempsey caught up with Formula One champ Michael Schumacher, who spoke on a panel during the show with former Ferrari CEO Jean Todt. But other biz regulars at the annual Monterey motoring events are MIA, including Fox chairman Jim Gianopulosand attorney Alan Wertheimer.

“Too much work,” was Wertheimer’s excuse via text from Los Angeles.

And comedian Adam Carolla, who was racing his Nissan at the nearby Laguna Seca racetrack on Saturday, said, “I actually have to work tonight.” He had a stand-up gig in the area. “Yeah, it helps pay for some of this,” he said as he motioned to his car, which used to be raced by Paul Newman. (Carolla added he’s working on a Newman documentary.)

There were several cars with Hollywood histories and provenances at the auctions here, but not many fetched big sales. At the Gooding & Company sale on Saturday night, a 1927 Rolls-Royce Phantom I Playboy Roadster that made an appearance in Giant went for $341,000, while the 1920 Locomobile 48 Sportif, seen in the 1992 Robert Downey Jr. film Chaplin, came off the block at $176,000 — both selling at the low end of their estimates.

Hedy Lamarr‘s husband’s prewar French Delage D8-120 sold for $770,000 at Gooding. But the ’63 Corvette Sting Ray race car featured in the Elvis Presley film Viva Las Vegas (estimated at $375,000-$475,000) didn’t sell at Friday night’s RM auction because it didn’t fetch its reserve price.

Sunday’s final auction at Gooding isn’t expected to eclipse Saturday night’s Ferrari record, but perhaps the motorheads will be exhausted anyway — after a full day of walking the Pebble Beach lawn, where the annual Concours D’Elegance is unfolding under foggy skies.

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To subscribe to the e-mail alert service logon to www.emailalert.dmv.ca.gov/subscriptions.asp.

This page contains detailed instructions on how to subscribe.
The Industry Tools Home Page located at

http://www.dmv.ca.gov/vr/dealer_regservice.htm

provides convenient access to information and links that are pertinent to the vehicle registration industry.

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certified dmv dealer education

we make it simple for you

800-901-5950

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pasadena car dealer school is taught by a real car dealer

imagine this

a real car dealer teaching car dealer school

would you be surprized to know

we are the only licensed retail car dealers

certified to teach car dealer education

we are not attorneys

we are not tax advisors

we are not bond agents

we are not insurance salespeople

we are not selling you car dealer forms

WE TEACH CAR DEALER SCHOOL

with real life experience

we specialize in california dmv certified car dealer license training

no one does it better

getting started requires our

Car Dealer Class

and

Your Car Dealer Bond

$ 10,000 baby bond for wholesale only and retail motorcycles

$ 50,000 dealer bond for unrestricted wholesale, retail selling and auto-brokering

Click here for an immediate car dealer bond quote

dlr plate

redstar

some car dealer schools cancel at the last minute…be careful

the list of

dmv approved dealer schools

is long

very few are career educators

devoted to the best car dealer class possible

+++++

REMEMBER THIS

some return your phone calls

some only sell bonds

some only sell insurance

some sell car dealer forms

some do income tax preparation

some cancel classes at the last minute

+++++

gotplates.com

is the car dealer education leader

we always answer phone calls

800-901-5950

we DO NOT sell product

we TEACH

we NEVER cancel our classes once posted on our website

AND

we are the only teachers offering an online preparation tutorial for free

CLICK HERE FOR THE FREE CAR DEALER CLASS ONLINE

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we look forward to talking to you

and meeting you at one of our 39 car dealer class locations

+++++

TriStar Motors

gotplates.com

800-901-5950

+++++

call today

 

customer service should not be a lost art

the list of

dmv approved dealer schools

is long

very few are career educators

devoted to the best car dealer class possible

+++++

REMEMBER THIS

some return your phone calls

some only sell bonds

some only sell insurance

some sell car dealer forms

some do income tax preparation

some cancel classes at the last minute

+++++

gotplates.com

is the car dealer education leader

we always answer phone calls

800-901-5950

we DO NOT sell product

we TEACH

we NEVER cancel our classes once posted on our website

AND

we are the only teachers offering an online preparation tutorial for free

CLICK HERE FOR THE FREE CAR DEALER CLASS ONLINE

+++++

we look forward to talking to you

and meeting you at one of our 39 car dealer class locations

+++++

TriStar Motors

gotplates.com

800-901-5950

+++++

call today

 

retro license plates may make a revival

Retro license plate proposal on the move

California lawmakers can’t roll back gas prices or revive eight-track tape players, but they soon may offer motorists something else from decades past: replica license plates.

Assembly Bill 1658 would allow the Department of Motor Vehicles to issue plates resembling those of the 1950s, through ’80s for a fee – $50 initially, $40 per year – to cover administrative costs and raise money for environmental projects.

Assemblyman Mike Gatto, a Los Angeles Democrat who proposed the bill, said it capitalizes on nostalgia and recent production of retro-style vehicles. “What’s old is new,” he says, “and it might make the state a little money, too.”

Plates would not be issued by the DMV until 7,500 had been ordered by the public. They would come in three classic designs, with black lettering on a yellow background, or yellow lettering on either a black or blue background.

The new plates would not be exact reproductions, however. Current plates have seven digits, for example, while those of decades past had six. Reflectivity and font-type standards also have changed through the decades.

AB 1658 received bipartisan support in the Assembly Transportation Committee, 14-0, and is awaiting action in the Assembly Appropriations Committee.

got plates logo5

 

every car dealer must present a pot of gold to the dmv

we call the dealer surety bond

a pretty pot of gold that

you must create and present to the dmv

it is a promise to three agencies of state government

the bond has a 12 month coverage period

with a three year claims period

for example:

2014 sales are covered thru 2017

by posting a bond you promise to:

always pay the dmv for fees and penalties

always pay the board of equalization its sales tax

honor all judicial orders for repayment

if you break your promise

the agency exercises your bond

the bond company makes payment to the agency

and you must make immediate repayment to the bond company

old school dealers have posted cash or savings

with a 3 year hold after you close the business

new school rents the money from the bond company

with the bond preminum based on the collective credit of the owners

wholesale only dealers with 24 sales per year or less can post a $ 10k bond

with preminums starting @ $ 300 per year

wholesale dealers above 24 sales per year or retail dealers

must post a $ 50k bond

with preminums starting at $ 850 per year

multiple year purchases are available with some discount

preminums for those with poor credit can exceed $ 5k per year with a $ 5k deposit

we suggest you contact sony at unipoint insurance services

( 714-677-0843 )

for an immediate bond quote

good luck

thx

charlotte

800-901-5950

call me1

car dealer language lessons

 

BABYSITTER: Slang term used for a co-signer or co-buyer on an automobile contract; often used where the primary buyer needs help to make a decision or make the buy.

BACK END: Back end is 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.

BACK OUT THE DEAL: See meaning of Unwind.

BEATER: See SLED.

BE BACK: 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.

car salesmanBIRD DOG: One who refers prospective customers to a particular dealership or salesman for a given fee or compensation.

BOUNCE: To bounce someone means to increase the sales price of the car, interest rate, monthly payments, etc.

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

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

BUMP: See BOUNCE.

BUREAU: A credit report on a customer.

BUY RATE: This is the interest rate that banks or financing institutions will charge on all contracts being financed. It is a “secret” number between the lender and the dealer which is the real amount of the interest rate that the loan starts out at before the dealer increases it for its own extra profit.

A BUYBACK: a vehicle that the manufacturer bought back, usually because it was a lemon, and then was resold, often through a car dealer auction where it can be recycled back into the marketplace, often without disclosure of its true history of defects, also, see laundered lemon.

CANDY STORE : A dealership with lots of vehicle inventory.

CASH THE DEAL: 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.

CHASSIS: 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.

CHISLER: A buyer who constantly grinds the salesman to the best possible deal that he can get.

CLIMBER: A salesman who can sell anything to anyone. One who is able to tackle a tough customer and knock them over.

CLOSER: Usually a pushy salesman whose job it is to “close” the deal with the customer when the customer hesitates when dealing with the salesman.

COLD CANVAS: A form of prospecting where a salesman or dealership solicits any and all prospective buyers in any given area.

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

DE-HORSE: This is when you take a customer out of his trade-in and let him temporarily drive a borrowed car from the dealership until his purchase is completed.

DESK: The floor manager’s central location. It literally is an office location that is typically on the show room floor and glass walled so the Desk Man (the manager) can see everything that is going on. From here the manager controls every deal being worked on. Sales staff go to the Desk to get approval on every aspect of the deal. The Desk controls the payment quotes, the price, the down payment and trade in terms. See Tower.

DESKMAN or DESK: A man who both figures and determines what kind of deal the dealership will make to a customer. He is in charge of all financial aspects of every deal and charged with the responsibility of maximizing the dealer profit.

DEUCE: This usually refers to a $200.00 figure for whatever reason, down payment, trade-in value, etc.

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

DOORMAN: 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.

DOUBLE DIP: To finance purchase between two or more loan companies.

DOWN: Short form for down payment. Also used when a salesman is finished talking to a prospective buyer. He is considered to be down and the next salesman is considered to be up and in line to handle the next prospective buyer.

DOWN STROKE: Means customer’s down payment.

EDGY: This is a customer who may or may not be able to get his car financed.

EIGHTY FIVE FIFTY FIVE, 8550: 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.

ETCH, ETCH-A-SKETCH: Often called theft guard or a similar term, it is a 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 car if they recover it after it was stolen, usually sold for hundreds of dollars by a car 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 car dealer profit at little cost and some say etch gives little or no real benefit to the consumer.

ETHER: Is 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.

EYE BALLER: Is a flashy looking, bright colored, usually a sporty type automobile.

F and 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.

Five Finger Close: A technique used by some car 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.

Five Finger Fold: 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.

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

FLIP: This is to convert a buyer from financing his automobile through his own bank or credit union to financing through the dealership.

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

FULL BORE: To sell a car for the full sticker price with no discount.

GOLD BALLS: One who has excellent credit and usually a considerable down payment.

GRAPE: This is a very easy buyer. He normally goes along with anything anyone tells him.

GREEN PEA: This is a new salesman or sales business manager.

GRINDER: This is a buyer who, no matter what the salesman offers, wants more for less.

HEAT SHEET: 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.

HEN: Older type salesman who influences younger salesmen (adversely).

HIGH BALL: A figure given to a prospective customer which is an inflated value of his trade-in in order to get the customer to return to the dealership to purchase his new car.

HIGH PENNY: 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 a car payment, he will pay $101.93 without giving it a second thought.

HIGH PENNY ROLL: is 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.

HOME RUN: 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.

HOPE DEAL: The phrase used by a car 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.

HOUSE: When the dealership itself, also called the store; alternative: when referring to a recreational vehicle it is the portion of the RV above the chassis itself and is also called the box.

IRON: This is an old used car valued at nothing more than the price of iron.

KINK: A problem with a deal due to “miswriting”, misrepresentation, misquoting, or mishandling.

LAID AWAY: A customer who has paid the maximum price for as many items (like accessories, rust proofing, extended warranty, financing and credit insurance) as can possibly be sold on an automobile.

LAND THE CUSTOMER: This is when the sales person has identified the type of vehicle the buyer is looking for and found it and has gotten the buyer’s attention fixed on purchasing that specific vehicle, such as they have landed the customer on the iron.

LAY DOWN: This is a customer who says yes to everything. They “lay down” and get run right over.

LAUNDERED LEMON: When a car is bought back by the manufacturer and then resold without disclosure that it was bought back under the lemon law, thus hiding its defect history from subsequent owners, it is generally an illegal practice.

LEG as in “giving Leg.” 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.

LINER: A salesman whose responsibility is to land a customer on one particular vehicle, get a commitment of some type from the customer regardless of how ridiculous it is, and then turn the customer over to his T.O. person, the sales manager or mother.

LOADING THE PAYMENT: means 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.

LOT LIZARD: A the sales people who stand around outdoors on the car 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.

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

MICKEY: 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.

MOTHER: See T.O. MAN.

MOUSE HOUSE: Slang term used for a finance company.

NEGATIVE EQUITY: Negative equity means that your trade-in vehicle has a fair market value that is less than what you owe on it. This could be because you have not owned it very long and you still owe a very high payoff on it. It could also be because the last dealership you traded a car in, and who sold you this one, started you on this “negative equity” cycle. Click here for more information about Negative Equity Car Dealer Scams.

NICKEL: Refers to $500.00 for either trade value, purchase price, cash down, etc.

PACK: this has two applications. First, it is used to describe the overhead deduction from the sales person’s commission. The dealer will deduct anywhere from $100 to $700 from the gross profit of the deal and pay the salesman his commission which is figured on the difference. The dealership (also called the house) calls the deduction a dealer pack but it is really just a way of reducing the commission the sales person has earned in a deal. In the second use of the term, it is used in relation to payment packing, which is 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.

PAYMENT PACKING: 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.

PENCIL: This has two applications. First, a sales manager will pencil a salesman’s deal by crossing out the customer’s offer and penciling in the figure that he wants to get for that car. The second application is used when a salesman 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 Insurance.

PIPE SMOKER: A customer who smokes a pipe, gives no commitments whatsoever, usually grinds the salesman to his last thread and doesn’t buy the car after all.

PUT TOGETHER: This means much the same as “laying someone away”. In other words the maximum gross profit to be made on that deal was accomplished.

RATE SHEET : 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.

RESERVE: Sometimes thought of as a “kickback” the bank gives the dealer for setting up the loan. 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 money” but the customer thinks the interest is all being charged by the bank.

RESIDUAL: This is the termination value of an automobile that is being leased. The number on the lease contract may be real or simply made up.

ROLL BACK: 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. It also means to “roll back” the odometer on a car to make it worth more money – highly illegal.

ROLL TERM: 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.

RULE OF 78: A mathematical formula used in figuring a rebate of unearned charges or premium, when these charges were pre-computed and pre-paid. Once referred to as “78 ways we get to keep your money”.

SEALING THE CUSTOMER: 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 detracts from the fraud since it 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.

SERVICE LANE WALK: 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.

SHADOW: What a green pea does to lean how senior salespeople sell, i.e., they follow them around and observe.

SHOUT OUT: When the customer commits to the buy, the salesman loudly announces, sometimes on the dealer’s public address system, that “[buyer's name] has just purchased a [year make model Rv 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 buyer’s commitment to the sale, often used in slasher sales.

SIGNED, SEALED AND DELIVERED: Generally means the same thing as SEALING THE CUSTOMER.

SLASHER: 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 vehicles that have been sitting on the dealer lot (called stale inventory) 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 (see term definition below) and pushy and aggressive sales people whose sole objective is to make sales happen one way or another.

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

SLIDE RULER: 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 have a slide ruler or a pocket calculator with him to calculate his own sales tax and total sales price.

SOBRE: Spanish word which generally means the same thing as SEALING THE CUSTOMER when the customer is of Hispanic heritage.

SOFT ADD ON: 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.

SPEAR: Think of it like in the movies when the Indian would “spear” a fish in the stream for his dinner. This is just a method used in getting a customer onto a dealer’s lot. For example: Stopping a man on the street and telling him that you would give him some outrageous figures for his trade-in if he would just come down to the dealership today and take a look at what you have to offer.

SPIFF: 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.

SPOT DELIVERY: This is when all phases of the purchase and delivery are completed the same day and a few days or so later the dealer calls the customer back and claims they have to sign a new finance contract or put more money down or that the lender requires the buyer to get a service contract or extended warranty in order to get loan approval, etc. It may or may not be true. It sometimes is used by a dealer to strong arm the buyer into buying more soft add on products in the deal. Sometimes this is also called a Yo Yo.

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

STICKS: Reference given to the borrower’s furniture he puts up as collateral on a small loan, such as when he borrows the money for the down payment on the car he is getting ready to buy.

STRAW PURCHASE: This is when a third party buys an automobile and finances it in his name for some else (who will be the actual driver) because of that other person’s age, bad credit, or lack of credit, etc.

STROKER: An individual who gives the impression that he wants to buy a car, but really doesn’t have the means to do so.

STRONG: This word has two possible meanings. When used in reference to an automobile, it indicates that the car is a good seller and therefore, an above average profit can normally be made on it so the dealer can get away with charging a premium price, often above the sticker price or other normal market value. The second application would refer to a sales individual, be it salesman, sales manager, Sales Business Manager, a closer, etc, and means their ability to be aggressive and pushy to make a sale happen when the customer is wavering or doubtful of the deal being offered.

STUD: See second application of STRONG.

“SUM OF THE DIGITS”: Another term used for the “RULE OF 78″ – a formula used in figuring refunds or rebates of money paid for a soft add on product like insurance or etching, sometimes referred to as “78 ways we get to keep your money”.

SWITCH: To change a customer from buying one car to another for several reasons: availability, possible profit, etc.

THIRD BASEMAN: An individual who accompanies a prospective buyer because the buyer feels he is better versed in haggling over the price of the car and/or knows more about the car mechanically, thereby decreasing the chances of getting stuck with a “lemon”.

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

T.O. (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.

T.O. MAN: This is the individual to whom a LINER will turn a customer over.

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

TOWER: the floor manager’s central location. It literally is an office location that is typically on the show room floor and glass walled so the manager can see everything that is going on. From here the manager controls every deal being worked on. Sales staff go to the tower to get approval on every aspect of the deal. The tower controls the payment quotes, the price, the down payment and trade in terms.

UNWIND THE DEAL: To cancel a vehicle sale or lease like it never happened at all, i.e., the dealer takes back the vehicle and may or may not refund the customer down payment or give back the customer trade in vehicle. The dealer may or may not have a legal basis to unwind the deal. But universally dealers do not want to do it.

UP: This refers to the prospective buyer and is a generic terms for any potential customer.

YO YO DEAL: This is when all phases of the purchase and delivery are completed the same day and a few days or so later the dealer calls the customer back and claims they have to sign a new finance contract or put more money down or that the lender requires the buyer to get a service contract or extended warranty in order to get loan approval, etc. It may or may not be true. It sometimes is used by a dealer to strong arm the buyer into buying more soft add on products in the deal. Sometimes this is also called a Spot Delivery

 

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Be-back: A customer who leaves the car lot promising to return later, saying, “I’ll be back,” or some variation of that statement. “The guy was a be-back. But I think he meant it. I’ll see him again.”

Bumping: Raising the customer’s offer for a car. “If Mr. Customer says he only wants to pay $250 a month, just say, ‘Up to — ?’ He’ll probably bump himself up to $300 without you doing anything.”

“Buyers are liars”: Car salesmen know they have a reputation for dishonesty. But they counter with this claim of their own.

Salesman #1:After the test-drive, this guy tells me he has to leave ’cause he’s got a doctor’s appointment. Yeah, right.”

Salesman #2:“What can I tell you, man? Buyers are liars.”

Closer: An experienced salesman who is brought in to “close” the customer by making them agree to a deal. “If I worked with a better closer, I’d have more units on the board.”

Demo: This is the test-drive. “This guy comes in, demos the car, and I think he’s ready to buy, right? Then he tells me the car’s for his wife and he can’t make a decision without her. Same old line.”

F&I: This stands for the Finance and Insurance office where the documents are signed. The F&I salesperson usually will push products such as extended warranties, fabric protection and alarms. “The wait for F&I is two hours. Better stick with your customer so they don’t skip out the back door.”

“The feel of the wheel will seal the deal”: It is assumed that if you test-drive a car, you will buy it. “This prospect was on the fence, right? I get him in the car, he drives the thing, now he’s hot to buy. It’s like they always say, ‘The feel of the wheel will seal the deal.'”

First pencil: This is the opening offer from the sales manager, usually written onto the four-square worksheet, so-called because it is highly negotiable, i.e. written in pencil, not ink. “I show my customer the first pencil and it’s so high he nearly dies. I scrape him off the ceiling and make a deal.”

Four-square: As negotiations begin, the salesman pulls out a worksheet divided into four squares which represent the four elements of a car deal: selling price, trade-in value, monthly payment and down payment. “I started working the four-square and looked up at the prospect. It was great — they had no idea what the hell I was talking about.”

Full pop lease: This is when a vehicle is leased at 110 percent of the sticker price — the highest amount allowed by most banks. “I got them into a full pop lease. I’ll get a nice voucher for that.”

GM: The general manager. The GM is the head honcho at the dealership. He runs the business from day to day. “The guys were standing out on the curb drinking coffee so the GM called them into the tower and read them the riot act.”

Green pea: A new car salesperson. “The funny thing is, green peas can outsell the veterans. That’s because they don’t know how hard this job is.”

Grinder: A customer who negotiates for hours over a small amount of money. “We were only $100 apart, but the guy wouldn’t sign. Man, what a grinder.”

Home run: This applies when a salesman has taken advantage of every element of the deal: trade-in, sale price and financing. “I stole their trade and buried them in a full pop lease with 9.9 percent financing. Home runs like that don’t come along everyday.”

Lay down (Also “Lie down” depending on usage): A customer who takes whatever deal the salesperson offers. “I quoted him monthly payments of $575 and he took it! I wish all the customers were lay downs like that.”

Mini: The commission on a deal where the car was sold at close to invoice price. “Sure, the deal was only a mini. But I qualified for a weekend bonus and made a grand.”

Mooch: A customer who wants to buy a car at invoice. “People are spending too much time on the Internet reading invoice prices. It’s turning them into a bunch of mooches.”

Packing payments: Adding extra profit to the cost of a car. “This place I used to work got busted for packing payments. Bummer. But it was great while it lasted.”

The Point: The place on the car lot where the “up” man stands looking for customers. “The GM saw me standing on the point with my hands in my pockets. He went ballistic and sent me home for the day.”

Pounder: A deal with a $1,000 profit in it. “Doctor comes in and buys the top-of-the-line model, fully loaded — and he pays sticker! That’ll be a two-pounder for me.”

“Rip their heads off”: This describes taking a customer to the cleaners. “I sold them this fully loaded, top-of-the-line model at a grand over sticker — I mean, I just ripped their heads off.”

Roach: A customer with bad credit. Not to be confused with the “roach coach” (see entry below).“The guy looked good. But we ran his credit, and he turned out to be a roach. We’re talkin’ a 400 credit score, repos and bankruptcies out the wazoo.”

Roach coach: The food truck that comes around to the dealership everyday. “I shouldn’ta eaten that chili from the roach coach. My stomach’s killin’ me.”

Spiff: A tip, kickback or payment of any kind, usually cash which is handed between salespeople.“I spiffed the F&I guy $20 bucks, and he took my customers first.”

Strong: This has a special meaning on the car lot. It means holding firm on your price and being a tough negotiator. “When they ask for your price, you have to be strong. Hit ‘em with high payments, then scrape them off the ceiling and start negotiating.”(See also “weak.”)

Tower: The office where the sales managers work. This is usually a raised platform allowing the managers to see over the roofs of the cars so they can watch customers and their salespeople.“Attention: All new car salesmen report to the new car tower!”

Turn over: Also known as “turning,” this is the practice of passing a customer from one salesman to another. It is thought that this will prevent customers from leaving the car lot. The theory is that the customer might just have bad chemistry with the first salesman and he might like the next salesman. “I turned this guy to my partner and he wound up buying. I’ll get half of the commission on the deal.”

Up: A customer who walks onto the car lot. The term probably comes from the order in which customers are taken, as in: “Who’s up next?” “There are customers all over the lot — looks like the ups bus just arrived.”

Voucher: Car salespeople receive a voucher to let them know what their commission was for selling a car. They don’t know until the deal is finalized exactly how much they will receive. “Check out this voucher. I thought I had a pounder. Instead it’s a mini.”

Weak: This describes being a weak negotiator or coming down too quickly on price. “The guy was weak so he only lasted a few months. How are you going to make money in this business if you give away cars?”

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buy here pay here california car dealers face new rules

“Buy-Here-Pay-Here” Car Dealers.   

Two new laws are directed at used car dealers that assign less than 90 percent of their conditional sales and lease contracts to third party lenders; and therefore provide direct financing to car buyers.  One of the new laws defines these used car dealers as “buy-here-pay-here” dealers.

AB 1447 further prohibits these dealers from requiring buyers to make payments in person, except for the down payment, and limits the circumstances under which “buy-here-pay-here” dealers may track a vehicle using electronic tracking technology (GPS tracking).   “Buy-here-pay-here” used car dealers will not be allowed to disable a vehicle with starter interrupt technology without first notifying the buyer in writing at the time of sale.  In addition, “buy-here-pay here” used car dealers will be required to provide a 30-day or 1,000 mile warranty as part of any purchase or lease of a used vehicle.  (AB 1447/Feuer)

AB 1534 requires “buy-here-pay-here” used car dealers to affix and prominently display a label on any used vehicle offered for retail sale that provides the reasonable market value of the vehicle.   The label must contain specific information from a recognized pricing guide used to determine that value and the date the value was determined.   The prospective purchaser must also be provided with a copy of the information that the dealer used to determine the vehicle’s value.  (AB 1534/Wieckowski)

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what is a car dealer bond exactly ???

DMV Motor Vehicle Dealer Bond

Bond Amount

$50,000

Requiring Entity

State of California Department of Motor Vehicles

Underwriting Criteria

Personal credit check and personal financial statements for all business owners

Who is Required to Secure this Bond

Under California Vehicle Code 11710 (CVC 11710) all applicants for a dealer or remanufacturer license are required to procure and file a bond with the Department of Motor Vehicles. The bond must be executed by an admitted surety, as approved to by the Attorney General. The dealer bond must be in the amount of $50,000, unless the dealer deals exclusively in motorcycles or all-terrain vehicles and wholesale dealers who sell fewer than 25 cars per year (CVC 11710.1)

Bond Requirement Specifics

Under California Vehicle Code 11710 (CVC 11710) all applicants for a dealer or remanufacturer license are required to procure and file a bond with the Department of Motor Vehicles. The bond must be executed by an admitted surety, as approved to by the Attorney General. The dealer bond must be in the amount of $50,000, unless the dealer deals exclusively in motorcycles or all-terrain vehicles and wholesale dealers who sell fewer than 25 cars per year (CVC 11710.1) The liability of the bond must remain at full value at all times. If the bond amount is decreased or if there is an outstanding court judgment again the dealer, remanufacturer or surety, the license will be automatically suspended. In order to reinstate the license, the licensee must file an additional bond or restore the bond to the original amount, or terminate the outstanding judgment or which the dealer, remanufacturer or sureties are liable (CVC 11710).

Who is protected Under this Bond

Purchaser, sellers, financing agencies or governmental agencies in the State of California are entitled to make a claim against the dealer’s surety bond should the dealer act in violation of the California Vehicle Code. Upon validation of the claim, the beneficiary is entitled to monetary damages which the surety bond would cover. The bond guarantees that individuals granted a license or permit to operate a business or to exercise a privilege will meet the obligations under that license or permit.

Underwriting Process

Each applicant must first complete and submit the application for a Motor Vehicle Dealer, which contains all of the pertinent information regarding the business and business owners. Upon receipt of the application, our agency will be able to provide a response as to rate and approval for the Motor Vehicle Dealer bond within one business day. Once the application is approved, the bond will be executed and released to the applicant upon receipt of payment.

What you Need to do Once you have your Bond

Once the Motor Vehicle Dealer bond has been approved and released to the applicant’s care, it must be filed with the Department of Motor Vehicles along with the licensing paperwork. The Department of Motor Vehicles will maintain the bond, which must remain effective at all times to prevent any suspension of the Motor Vehicle Dealer license.

Obligee Link

http://www.dmv.ca.gov/vehindustry/ol/olbranch_top.htm