A

• Absolute Auction: An auction with no minimum price or reserve; the vehicle sells to the highest bidder regardless of the final bid amount.

• ACV (Actual Cash Value): The fair market value of a vehicle at a specific point in time, based on year, make, model, mileage, condition, and current market demand.

• Advanced Driver Assistance Systems (ADAS): Technology built into vehicles to enhance safety and driving assistance, including features like automatic braking, lane keeping, and adaptive cruise control.

• AFIP Certification: A professional certification from the Association of Finance and Insurance Professionals that validates an F&I manager's knowledge of compliance, ethics, and consumer protection laws.

• Auction Block / Lane: The physical or virtual space at an auction where vehicles are presented one at a time and sold to the highest bidder.

B

• Bonded Title: A type of title issued when the original title is unavailable, backed by a surety bond that protects against future ownership claims.

• Branded Title: A vehicle title that carries a special designation indicating the vehicle has been declared a total loss, flooded, rebuilt, or otherwise materially altered.

• Buy Now Price: A fixed price set by the seller at which a vehicle can be purchased immediately, bypassing the live auction bidding process.

C

• Car Spotter: A person who sources or scouts vehicles on behalf of a dealer, often attending auctions or visiting private sellers to identify quality acquisition opportunities.

• Condition Report: A detailed inspection report describing a vehicle's mechanical and cosmetic condition, used by dealers to make informed buying decisions at auction.

D

• Digital Retailing: Tools and platforms that allow car shoppers to complete key steps of the buying process online, including trade-in valuations, financing applications, and payment calculations.

• Dealer Management System (DMS): The core software platform used to manage a dealership's sales, finance, service, and inventory operations.

E

• Electronic Titling: The digital processing and transfer of vehicle ownership documents, eliminating paper titles and streamlining the title management process for dealers and lenders.

• Equity Mining: The practice of analyzing a dealership's customer database to identify people with positive equity in their current vehicle who may be ready to trade up.

F

• Floor Plan Financing: A revolving line of credit dealers use to finance their vehicle inventory.

• FTC Safeguards Rule: A federal regulation requiring auto dealerships to implement a written information security program to protect non-public customer financial data.

G

• Guaranteed Asset Protection (GAP): An F&I product that covers the difference between what a customer owes on their loan and the vehicle's actual cash value if it is totaled or stolen.

I

• IF Sale: A conditional auction result where the high bid did not meet the seller's reserve. The seller decides after the sale whether to accept, negotiate, or decline.

• Inventory Turn: A measure of how quickly a dealer sells and replaces their vehicle inventory. Higher turn rates mean faster-moving stock and lower carrying costs.

L

• Live Auction: A real-time auction where vehicles are sold competitively through active bidding, either at a physical location, online, or through a combination of both.
  

• Lot Number: A unique identifier assigned to each vehicle entered in an auction, used to track it through the sale process from check-in to post-sale paperwork.
• Lot Rot: The depreciation and carrying cost that accumulates on unsold vehicles that sit on a dealership lot too long without turning.
• Low Reserve: A designation indicating a vehicle's minimum selling price is at or near the platform's data-driven recommended value, signaling a motivated seller.

M

• Margin Compression: The narrowing of profit margins that occurs when vehicle costs rise faster than retail prices, squeezing dealer profitability on each unit sold.

• Monroney Label: The federally required window sticker on new vehicles displaying the MSRP, standard features, optional packages, fuel economy ratings, and safety information.
  

N

• The National Motor Vehicle Title Information System (NMVTIS): A federal database that tracks vehicle title history, odometer readings, and total loss designations across state lines.

• No Reserve Auction: An auction format where vehicles are listed with no minimum price floor, meaning the highest bid wins regardless of the amount.

O

• Off-Lease Vehicle: A vehicle returned to a lender or manufacturer at the end of a lease agreement, commonly channeled into the wholesale market for dealer acquisition.

P

• Proxy Bid: A maximum bid amount set in advance that allows the auction system to automatically bid on a dealer's behalf up to their limit.

R

• Rebuilt Title: A title assigned to a vehicle that was previously declared a total loss but has been repaired, inspected, and deemed roadworthy by a state authority.

• Reconditioning: The process of preparing a used vehicle for retail sale, including mechanical repairs, detailing, paint correction, and any necessary safety work.

• Remarketing: The process of reselling used, off-lease, or fleet vehicles through wholesale channels such as auctions, dealer networks, or online platforms.

• Run and Drive: A vehicle that starts and moves under its own power, sufficient to drive onto and off the auction block, but with no representation of overall mechanical condition.

• Run List: A list of vehicles scheduled to cross the auction block during a specific sale, published in advance so dealers can research and prepare bids.

S

• Salvage Title: A title designation assigned to a vehicle that an insurance company has declared a total loss due to damage exceeding a percentage of the vehicle's value.

• Simulcast Auction: An auction format where in-lane and online buyers compete simultaneously in real time, allowing dealers nationwide to bid on vehicles without being physically present.

• Software Defined Vehicle: A vehicle whose features, functionality, and performance can be updated, modified, or added through software rather than physical hardware changes.

• Starter Interrupt Device: A device installed on vehicles sold to subprime borrowers that allows a lender to remotely disable the vehicle's ability to start if payments are missed.

• Synthetic Identity Fraud: A form of fraud where criminals combine real and fabricated personal information to create false identities used to obtain auto financing.

T

• Title Absent: An auction designation indicating the physical vehicle title is not available at the time of sale. The buyer purchases the vehicle knowing the title will follow within a specified timeframe.

V

• Vehicle Acquisition Strategy: A structured, data-driven plan outlining how a dealership sources used vehicle inventory across multiple channels to meet sales goals.

• Vehicle Service Contract: A contract sold in the F&I office that covers the cost of certain mechanical repairs after the manufacturer's warranty expires, commonly referred to as an extended warranty.

• VIN Etching: The process of permanently engraving a vehicle's VIN onto its glass surfaces as a theft deterrent and a value-added F&I product.

• Vehicle Identification Number (VIN): A unique 17-character code assigned to every vehicle at manufacture, used to identify it for titling, registration, history, and recall purposes throughout its life.
  

W

• Wholesale Value: The price a vehicle would realistically bring in a dealer auction, as opposed to what a retail consumer would pay.