|Glossary of Terms|
Below is a list containing definitions to terms
commonly used on our website.
Cash Back - A specific sum of money that a manufacturer (or dealer or dealer association) offers as an incentive to the purchaser. Usually the incentive is taxable, therefore be sure to apply tax to the gross amount.
Dealer Installed Options - Optional equipment that is installed by the dealership (or a 3rd party). All dealers are invoiced the exact same amount for the parts. The MSRP of these parts are often listed on the car manufacturer's web site. The cost to install this equipment can vary from city to city, and sometimes even from dealer to dealer. We do not provide info on this type of equipment.
Factory Installed Options - Optional equipment that is installed in the car maker's assembly plant. All dealers are invoiced the exact same amount across the country for identical factory installed options. We do provide info on this equipment.
Dealer Participation - A specific sum of money that a dealer pledges towards the cost of cash, finance rate or lease rate subsidization.
Hold Back - Most manufacturers help subsidize the interest charges and marketing/advertising that a dealer incurs by paying the dealer a holdback amount, after the vehicle has been sold. This amount typically ranges from 2.0% to 2.5% of the wholesale amount. Dealers will rarely consider this when negotiating a new car deal.
Password - In our old system, your password was the same as your sales order number and is required in order to migrate your account. Our new system now enables you to select your own password.
Price Report History Folder - Each time a member views a price report, the details are recorded in our system. This allows the user to review and modify the specific vehicle. There is no limit to how many times a user can review or modify a vehicle in his or her report history. Our new system recognizes when a previously viewed vehicle is selected again and will not count subsequent reports against your account. All trim levels for a vehicle count as the same vehicle.
M.S.R.P - The Manufacturer's Suggested Retail Price, commonly known as the List price or window sticker, is the price set by the manufacturer. This is typically the price that the new car dealer would like you to pay. Although the overwhelming majority of new cars are sold at less than the M.S.R.P., some dealers will hold out for this price on a very hot-selling vehicle that is in high demand and limited supply.
Rapid Response Dealer Quoting System (RR) - RR is a no extra cost service that instantly quotes you a no-hassle, rock-bottom price on most popular models from a pre-screened dealer in your area. This service is currently available for most popular makes in most urban areas.
Sales Order Number (SO #) - A Sales Order number is the numeric record identifying your purchase.
Wholesale Price - Every manufacturer sends an invoice to the dealer for their vehicles as soon as they are delivered to the dealer. The dealer will typically pay for the vehicle via a prearranged line of credit. Commonly, the dealer will start paying interest charges from the first day onwards.
Wholesale Price Report - Wholesale Price Reports are our core product. This report contains specific information including: retail and wholesale prices on the base price and factory-installed options of your choice. It also contains the most up to date information possible on factory national cash, finance & lease incentive programs. As an added value the report may also include a Rapid Response Dealer Quoting System (RR) no hassle quote from a dealer local in your area.
Incentive - A time-sensitive promotion offered by the manufacturer to motivate a new car buyer to purchase.
Factory To Consumer Incentives - In an effort to stimulate sales, many manufacturers will offer incentives to the consumer (you). These incentives are commonly advertised in the media and can consist of low rate financing/leasing rates, such as 0%, cash rebates, such as $2,000, or a combination of both. If a manufacturer is offering you 0% or $2,000 cash, the emphasis is on OR; which means that you cannot get 0% financing and $2,000. You have to decide between the two. In some cases, you can combine the 0% and $2,000, but not very often.
Factory To Dealer Incentives - Commonly referred to as hidden rebates. Internally these non-advertised dealer incentives can be known as marketing credits, trading dollars, factory cash, dealer cash, dealer bonuses, invoice credits, etc. Many manufacturers will use them as additional stimulus for the dealer to sell more vehicles. In some cases, the manufacturer may not want to advertise that they are offering incentives to avoid tarnishing their image, where others will use these incentives to encourage dealers to carry more inventory and thus sell more vehicles. Most dealers will factor in these factory to dealer incentives when negotiating a deal. Effectively this may allow the buyer (you) to buy/lease a new vehicle for less than the wholesale price.
Non-Stackable Incentives - A monetary credit that may not be combined with finance, or lease rates or other promotional credits offered by the manufacturer.
Stackable Incentives - A monetary credit that may be combined with finance rates, lease rates, or other promotional credits offered by the manufacturer.
Trading Dollars / Retail Delivery Credit - See Factory to Dealer Incentives described above.
Lease Cash - Also referred to as Lease Assistance or Support, it is an incentive that is combinable with lease rates offered.
Lease Take-Over - Lease-Take-Over: A term coined by Leasebusters Inc. whereby a leasing client can "get-in-to" or "get-out-of" an existing vehicle lease package by virtue of a lease-assignment procedure. The concept is very similar to that of a sublet of an apartment or condo lease.
Special Lease Rate - Generally an interest rate on a lease for the new vehicle that is lower than the usual interest rate offered by the leasing company. The rate is subsidized by the manufacturer or dealer or both.
Finance Cash - An incentive that is combinable with finance rates offered.
Special Finance Rate - Generally an interest rate on a loan for the new vehicle being purchased that is lower than the usual interest rate offered by the finance company. The rate is subsidized by the manufacturer or dealer or both.
SSL - Secure Socket Layers, technology used to encrypt data that passes across a network of computers. The system used by Armada Data Corporation runs at 128 Bit, the same level as the chartered banks. 128 Bit encryption is the industry standard.
Verified By Visa - A personalized security program managed by Visa and the credit card issuer. The user is prompted to enter a secret code that is verified by the credit card issuer independently of the merchant.
Maximum dealer margin/profit - The difference between the M.S.R.P. and the dealer invoice price is the maximum dealer margin/profit that the dealer has to work with when negotiating a deal.
Dealer and buyer goals - The dealer's goal is to negotiate a deal as close to M.S.R.P. as possible and the buyer's (your) goal is to negotiate a deal as close as possible to the dealer invoice price.
Actual dealer margin/profit - The amount over the dealer invoice price that is finally negotiated between the dealer and the buyer (you), is the dealer's actual dealer profit/margin, before sales and overhead expenses.
Dealer overhead and bottom line profit - From the actual dealer profit/margin amount the dealer has to cover the sales rep and sales manager's salaries, commissions and bonuses. The remainder goes to the dealership to cover all other expenses, with the final balance representing the actual net profit to the dealership.
Automatic Discounts on your next New Car!