On The Lot

How many you got out so far this month?

2006-07-10T15:39:00.000-07:00

Well, sorry it's been so long since I've posted. Kinda got sidetracked with things. Anyway, lately I have been reminiscing about the manager-salesman relationship at car dealerships. As I mentioned in an earlier post, most dealerships require their sales consultants to introduce a customer to a manager or senior sales consultant prior to allowing that customer to leave (unless the customer buys a car). This is referred to as a "Turn Over," or "T.O." I have seen more then a few salesmen (females included) be disciplined, even terminated, by habutially failing to T.O. Oftentimes, though it can be unavoidable.

At the first dealership for which I worked, our desk manager (the guy that shafts the salesman with presenting a low trade figure and a high payment to the customer) would tell us, "The only time you should not T.O. is when the customer is burning rubber off the lot screaming curse words at you and giving you the finger." Seems a little extreme, doesn't it? Well, believe it or not, it happened once or twice to me, and some salesmen would ensure it happened just to get out of a T.O. But, that's irrelevant.

Any salesman who isn't a greenpea can pretty much assess their chances of selling a customer a car within the first half hour of the sales process. For instance, if the customer doesn't want to drive the car, and doesn't want to see any numbers, chances are they're just there to kick tires and generally waste the salesman's time. There are also times when a customer is VERY adamant about NOT driving and NOT getting a price. A reasonably coherent salesman can pick up on this quickly. But, none of that matters when it comes to the 100% T.O. rule.

I can understand from management's point of view that they want to ensure all means possible to sell the customer a vehicle are exhausted prior to them leaving. But if the customer, as aforementioned, is wasting the salesman's time, what is he/she going to do with the manager's time? There are just those times when even a high-grossing manager can't make chicken soup out of chicken sh*t. Yet, when the salesman lets a bog (bogus customer) go without a T.O., management will usually throw a hissy fit.

The problem is this happens more and more in today's automotive market. People are so afraid to spend money that they will visit a dealership 5 or 6 times before they 1) see what they want 2) can afford what they want or 3) actually have the cojones to screw the salesman out of a good commission by asking for a $4,000 price concession. Now honestly, why go ape over that if you know it's more commonplace than to sell a customer on the first try?

I know, I know...it's all about the numbers. I've taken my share of training classes and watched videos enough to know that typically between 10-12% of people buy on their first visit. I know the chances of selling a Be-Back are around 50% on their second visit. I know referrals and repeats are around 2/3 chance of selling. But my gripe is, management knows the numbers, so why make the salesmen go miles out of their way to T.O. of the 90% of the people that won't buy the first time no matter how good the salesman is?

I've even had customers (who didn't buy the first time) flat out tell me they didn't want to speak to a manager because managers tend to push too much. I guess that's different for each dealership's actual sales process, but that tends to be true. The days of twisting arms and throwing keys on the roof are gone.

I part with 2 final thoughts, then your cartoon...

1) Customers - Like I said earlier, please let the salesman stay out of hot water and at least shake the manager's hand.
2) Salesmen - Take a moment to reflect on how many times you felt a T.O. was a waste of time for both you and your manager.

Hey what kinda rebate this thing got on it?

2005-11-16T18:27:00.000-08:00

Alrighty then, time for another cartoon and the ranting and raving to go along with it.

As far as cars go, they are not an asset, they are a liability. If you do not pay cash, you will owe money on any car you buy. Vehicle manufacturers know this, so they offer off-the-top rebates or special interest rates. I will break it down for you:

REBATES: Rebates are good in the sense that you are basically paying less for a vehicle that what it says on the sticker. They can also be useful if you have negative equity. Say you owe $3,000 more on your trade than it's worth...there is a $4,000 rebate on the car you are wanting to buy. $3,000 of it goes to paying off your trade, and the extra $1,000 comes off the price.

SPECIAL INTEREST RATES: Everyone hates paying interest. I do, you do, we all do. But, there is no way around it. If someone gives you money, you are going to have to pay them back a little more than they gave you. But, car manufacturers frequently offer special rates to help out people looking for a certain monthly payment. The normal rate on a 60 month loan in the Kentucky area (with good credit) is about 7%. That sounds high, so car makers might offer low financing such as 1.9%, 2.9%, etc. Sometimes they will offer 0%. The bad side of this is, you will more than likely have to give up most, if not all, of the rebates.

An example for you, numbers style...

With Rebates:
Price: $26,420 including taxes
Trade Value: - $10,000
Trade Payoff: + $14,430
Total: = $30,850
Rebate: - $ 5,000
Amount to Finance: $25,850
60 month payment: $511.86 at 7% interest

Without Rebates:
Price: $26,420 including taxes
Trade Value: - $10,000
Trade Payoff: + $14,430
Amount to Finance: = $30,850
60 month payment: $514.17 at 0% interest

So you can see, if there is a rather large rebate, it is best to swallow your pride and take a high interest rate. Now for your cartoon!!!

Just click the thumbnail to see the full-size version.

Hey...where'd you go?????

2005-11-04T15:38:00.000-08:00

Sorry it's been so long since I have posted. Lot going on lately.

Anyhow, I will keep this relatively short, and give you some cartoons I just made a couple days ago.

Something that happened on the lot today (thankfully it didn't happen to me)...A couple comes in in a 2003 Lincoln Navigator, wanting to trade it in on a 2005 Lincoln Aviator. So, the salesman brings them inside and gives a really good presentation on the Aviator, covering everything from horsepower, to color selection, etc.

It came time for the couple to test drive the Aviator, so the salesman gives them a brochure and asks them to wait a few minutes while he pulls an Aviator up. It took a bit longer than he anticipated, as he had to jump-start the one he picked out (after about 6 months of sitting, the battery shuts itself down). I happened to be outside enjoying one of the last days of nice weather this year, and I see the people get back into their Navigator and drive off, at the exact time the other salesman was pulling up in the jump-started Aviator.

They didn't so much as let me know, or anyone else in the entire dealership for that matter, that they were leaving. They just got in and left. I have never had that happen to me, and I was just as angered as my colleague that someone would be so disrespectful. We are just trying to make a living like everyone else in the working world, and someone just blatantly disregards our livelihood and abruptly leaves without any notice.

OK, I'm done griping. Enjoy the cartoons!!!

Sorry, but you'll have to click on the first one...it's too wide to not be a thumbnail...

Semper Fidelis

2005-09-25T19:48:00.000-07:00

As I sit back and reflect on the events I have experienced in times past, I must take this time to post an entry about something totally unrelated to selling/buying cars. As most of you know, I served in the world's elite fighting force, The United States Marine Corps. I shipped off for recruit training at Marine Corps Recruit Depot, Parris Island, South Carolina on 30 May 2001. I was trained to become a US Marine in Platoon 2069, Foxtrot (Fox) Company, 2nd Recruit Training Battalion under leadership of Senior Drill Instructor SSgt Tyrone Cobb, Drill Instructors SSgt James Crandall, Drill Intrstuctor SSgt Jose Lopez, and Drill Instructor SSgt Phil Hojan.

I then served on guard duty at School of Infantry East, Camp Lejeune, North Carolina. I remember to this day when the terrorists struck on Sept. 11th. I had just gotten off a 10 hour post and at 8 AM my fellow Marines and I were eating breakfast when CNN flashed that a plane had struck the World Trade Center. Imagine this if you will, 200 Marines, most of whom have only been in less than 6 months, all gathered around a 30 inch television watching the towers fall. A few Marines who had families in and around NY City immediately broke down in tears and ran to the phone center to call their loved ones. I, however, remained glued to the TV, in tears myself, realizing that our country had come under attack.

On Sept. 12th, our Commanding Officer briefed us personally notifying us that our ThreatCon (Threat Condition, similar to Terrorism Alert Level) had gone to ThreatCon D (Delta), which is the highest threat condition possible. He also told us that we had an immediate need for 75 Marines for guard duty in our company, of which only 25 were available. In light of this, we were assigned to triple duty, standing post 21 hours, off 3 hours, standing post 21 hours, off 3 hours. After 10 days of this, my feet literally stopped working and 10 months later, I was discharged Honorably from the Marine Corps, after 14 months on Active Duty. During those 10 months, I was promoted to Lance Corporal, and served as Chief Vehicle Operator for my company, overseeing the daily operations of 35 Marines. To this day I regret not being with my fellow Marines, not being able to be with them, not being able to protect them in their time of need.

I had served with a few Marines who were casualties of Operation Iraqi Freedom. One of which is Gunnery Sergeant Elia P. Fontecchio, Kilo Company, 3rd Battalion, 7th Marine Regiment, 1st Marine Division, 1st Marine Expeditionary Force. I had served with GySgt Fontecchio when he was a SSgt in 2002 at Camp Lejeune. He was a highly motivated Marine, and instilled his motivation and espirit de corps in every Marine of whom he had charge. GySgt Fontecchio died in Iraq on 8 August, 2004 from wounds received in combat in Al Anbar Province, Iraq 4 days prior.

To this day I make every attempt to live up to the title I earned; the title of United States Marine. Semper Fidelis (Latin for Always Faithful) is the Marine Corps motto, but it is more than a motto for me. It is a way of life. Every day my heart and soul goes out to all my fellow Marines, past and present, and to those Marines who laid down their life to provide our country with the freedoms so many Americans take for granted.

The best feeling I have ever had happened in March 2002 in Wilmington, North Carolina. I had taken a Marine to a civilian opthamologist in Wilmington, which is about 50 miles south of Camp Lejeune. While he was getting his eye exam, I was sitting in the waiting room quietly reading a National Geographic magazine, in my camouflage utilities. A man who I guess was in his mid-to-late 40's approached me and asked, "So...you're a Marine?" I calmly told him, "Yes, sir, I am." He then took off his hat, and shook my hand, saying, "Thank you. You are doing a wonderful job." I was left dumbfounded, and the only thing I could muster was "you're welcome." I felt guilty as there were and are Marines who deserve more thanks than I do, yet I was the one receiving such thanks.

In closing, I would like to offer my condolences to the families and friends of servicemembers who lost their lives in Iraq, Afghanistan, and in all military conflicts in the past. If anyone deserves the thanks I was given, it is these men and women. Fair winds and following seas to all of you. Semper Fidelis.

Aaron T. Sexton
LCpl, USMC
2001-2002

I'll have to check with my wife.

2005-09-21T15:46:00.000-07:00

I know what you're thinking. "Great! He is going to ramble on and on and make me wait to see a cartoon!" Well, I'll spare you the ranting and raving and post a few short comments.

If you are going to buy a car, your best bet might be to go with a new car with lots of incentives. If you don't want to (or don't have the money to) pay for depreciation on a new car, you should get either a Certified Pre-Owned (CPO), or a 1 or 2 year old used car with low miles. CPO's tend to have longer warranties, and are typically in very good shape with low mileage, and carry a lower price than new cars. Jaguar, BMW, Ford (including Lincoln and Mercury), Honda, Mazda, Hyundai and Toyota all have excellent CPO programs. You can check out their CPO programs on each manufacturer's website.

Now, here is what you came for...

Surely that will work for you...

2005-09-17T15:50:00.000-07:00

Sorry it's been a while since I have posted. Well, now for some more information...and a cartoon. I am going to make you read a bit, as the cartoon is down a ways :)

People nowadays are scared when it comes to buying cars. And for good reasons, too. The economy isn't the best (though it's better than the media would have you believe), cars are getting more expensive, interest rates are going up, trade values are going down, and gas...good lord.

To cure most of your ills when buying a car, it's good to do your homework. I'm not saying find a CPA and have him figure out how much you can fit into your budget, as that would be a little overboard.

The number one thing you should consider when buying a car is the dealership (and/or salesman) from which you intend to buy a car. Notice I didn't say price. Price should be one of your lesser concerns, and I'll tell you why.

The dealership and salesperson you should consider buying a car from will be reputable, successful, fair, and provide top-notch service before, during, and after the sale. As I said in a prior post, there are people in the car business out to make an honest living, and even though dealers will advertise that they are #1 in the region, it's largely up to you to research and find out which dealer truly is the best.

A fair dealer will still have some traits of the stereotypical car dealer (i.e. relatively large mark-ups in used cars, maybe even an additional markup above MSRP on new cars), but this is normal as NOBODY takes the sticker price. But what a fair dealer will do that an unfair dealer won't is show you how the figures add up, rather than just telling you what the numbers are. A good dealer will also be honest in appraising your trade, and apply as little pressure as possible. A salesman will always apply pressure, but the good ones will not be pushy. Once you decide what kind of car you are looking for, find that fair dealer, and give them a holler.

If you are unsure what the dealer has in stock, either get on their website and search their inventory, or call a salesman and ask. Keep in mind when a salesman takes a sales call, their only job is to get you in the door, but more often than not you can tell if that salesman is telling you the truth or stretching it. It is not the best technique, at least anymore, to go to the dealer in person unless you have a rough idea of what he has in inventory.

Once you find out if the dealer has the exact, or very similar, vehicle that you seek, go ahead and visit them. IF YOU DO GO to the dealership, PLEASE be ready to see the car(s) that match your preferences, AND test drive one, AND get a price for which you can buy/trade.

Two main reasons for being ready to do these things:
1. It will do you no good just to sit there and look at the car, and it's sticker price, because as I said, NOBODY pays sticker.
2. Most salesman will get in hot water if their customers don't drive and don't get a price. If you feel your salesman is an honest guy (or girl), do them the courtesy and drive it and get a price.

As far as your trade goes, read my previous post (the trade-in value negotiation takes place at the same time as the price negotiation).

Once all this is accomplished, keep in mind that a good, honest salesman will apply pressure, but will not force you into buying. If you have enough information to make up your mind, go on and buy. If not, go home and think it over. If you choose not to buy it, PLEASE have the decency to call the salesman and let them know that you bought from someone else. I have lost deals to entirely too many people and found out after 3 months of them not returning my calls that they bought a different car the day after I talked to them.

The car buying game is about being fair. A good dealer will be honest and fair with you, and you should be honest and fair with them. After all, they are only out to make a living, and you shouldn't hold that against them.

What's the interest rate?

2005-09-12T15:50:00.000-07:00

Some more random thoughts...Monday Edition.

First off, financing. Statistics show that between 85 and 90% of car buyers finance at least a portion, or lease their vehicles...we will get to leasing later.

Everyone knows what financing is. It is applying for and receiving a loan for the unpaid amount of a vehicle. Simply, if you put $1,000 down on a $25,000 car, you will have to finance $24,000. But, once again, it's time for a heartbreaker. In today's world, $1,000 down is next to nothing. Most banks and lending institutions will offer more favorable terms if at very least sales and usage tax, title, and registration fees are paid up front by the customer, and these fees rarely amount to a small figure such as a grand. I know...you have never put any money down when you bought cars in your entire life. Well, how much is your car worth? More importantly...how much do you owe?

Money down not only gives you a better chance of being "bought" (a term in car sales meaning approved), and getting a better interest rate, but it also puts you in a MUCH MUCH MUCH better position if you ever decide to trade in your new car before you pay it off. If you put nothing down on the same $25,000 car, the amount to finance, after taxes and title (in the state of Kentucky) and average dealer fees will probably be around $26,800. Most people finance for 5 years, but trade after just 27 months. This leads to you being BUURRRRRIIIIIEEEEDDDD in your car. Basically, you will probably owe, depending on rate, somewhere around $16,000 - $17,000 on a car that would do well to be worth $10,000. So this extra $6 - $7,000 will have to be applied to the price of your next $25,000 car, making you in even worse shape, and requiring either for you to put $6 - $7,000 down, or make payments that are about $150 more per month. So, do yourself a favor...plan on putting money down if you finance.

Now on to leasing. Leasing has gotten a VERY bad, yet undeserved reputation. Leasing is similar to financing, but your obligation is not for the entire amount of the car's selling price, but a percentage. This percentage is assigned by either the manufacturer, lending institution, or maybe both. This percentage is also known as residual value or guaranteed future value. Also, if you want to lease, PLEASE only lease a new car...you will get shafted if you lease a used car. Most banks won't even consider leasing a used car.

This next scenario is entirely hypothetical and uses nice round numbers so you can get the gist of it...if you lease, your actual figures will NOT be this favorable.

Anyway, let's take the same $25,000 car. Let's say the bank assigns it a 50% residual value after 3 years (36 months). Your monthly payment obligation will based on $12,500 instead of $26,800 (which is the selling price plus tax, title, and fees). Here's where it gets a little tricky. Your base payment will be between $370 and $400 a month, depending on rate, but you also have to add sales tax, which is figured by applying tax to the base payment, personal property tax, which is figured off the state's assessed value of the car and divided evenly among all payments, as well as state registration fees. So, depending on what your state's tax rates are, with a base payment of $370 - $400, your final monthly payment will probably be $420 - $450.

That's a big hike, but think about it this way. After 36 payments of $450, you have paid $16,280. If you financed the EXACT same car, after 36 months, you would have paid about $19,562 (figured at 8% interest). Want to save $3,000? Want to buy a car without putting money down? LEASE IT.

The best part about leasing, is that most banks (especially banks like GMAC, Ford Motor Credit, Chrysler Financial) have a few options of which you can take advantage when your lease ends.

First option - Buy your car. Remember the residual value? Well...if you just can't live without your hunk of crap, that is what you can buy the car for.

Second option - Sell your car. Take that same residual value of $12,500. Let's say your good friend wants to buy your sled for $15,000. Guess what, sell him the car, send the bank their $12,500, and POW! You just made $2,500 to fatten your wallet.

Third option - Walk away. If the same friend wants to buy your car for $10,000, that means you will have to come up with $2,500 out of pocket to send in to the bank. Well, since your lease contract is ended, you don't owe the bank one red cent, as long as you give them the car back.

There are some instances where you can trade before the lease is up, but that just gets you in deeper, just as trading before your purchase loan is paid off.

Also, if you have excessive miles, most leasing firms will charge $.20 a mile...10,000 miles means $2,000 out of pocket.

If the vehicle is damaged (including scratches and burn holes, worn tires, or cracked glass), and your insurance won't cover it, you will be obligated to pay for the repairs.

But, there is light at the end of the tunnel. When you sign a lease, you will be given the option to "buy" more miles when you sign. The charge is typically $.15 per mile, which is significantly better than $.20 a mile. Standard lease mileage is 15,000 miles per year. If you drive either more or less than 15,000 miles in a year, make sure the dealer adjusts the residual for the mileage you plan on putting on the car.

Also, for those pesky scratches and door dings, most leasing firms (especially Ford Credit), offer a kind of warranty that will cover up to a certain dollar value worth of damage. For instance, in a Ford Credit lease, the package is called "Wear Care." The charge is usually between $600 and $700, but it covers up to $2,500 worth of anything you can imagine to do to your car (except excess miles).

Well, to sum it up, if you don't have the cash to pay for a car in full when you buy it, you will have to finance or lease. Choose wisely, and most of all, I like beer. :)

Another day, another dollar...

2005-09-11T11:17:00.000-07:00

OK, time for some more random thoughts. Everyone has heard about GM's "Employee Discount for Everyone," Ford's "Family Plan," and Chrysler's "Employee Pricing Plus." It's all a big game to make people think they are getting a better deal than they could previously. And in most ways it's true.

I can only speak for Ford Motor Company, though. The "Family Plan" price is the exact same price (to the penny, I might add) that Ford Employees and their immediate family pays. That is normally $1,500 - $3,000 below dealer invoice. Instead of negotiating from MSRP, or addendum (a jacked-up price that the dealer uses to make you think you are getting a HUUUUUGE discount even if you buy at MSRP), the "Family Plan" price is printed in black and white on the invoice document itself. The trick here is that while you are getting the employee price, the cash rebates and incentives are significantly lower, sometimes offsetting the employee discount. But it doesn't matter to the manufacturer, it's the dealers who are getting hit really hard. Dealer invoice is almost always nearly double the manufacturer's invoice. Think you are getting ripped off? Here's a tidbit for you...on a $25,000 MSRP car, dealer invoice (depending on make) is probably somewhere between $22- and $24,000. Manufacturer's invoice is more like $10,000. So if you buy a new car at MSRP, sure you got popped for a couple grand, but the dealer just got popped for FIFTEEN GRAND. How's that for a rip off?

Anyway, that is how these manufacturers can afford to sell their vehicles at employee discounts. They still make tons and tons of money off their products and the dealers are forced to take the loss. Oh, and trade values went down a TON. The less money people can buy new cars for, the less their trade-ins are worth. It's like the stock market. When market value goes down, the entire industry goes down.

The worst part for consumers, though, is that there is nothing the public can do about it. Sure, the dealer wants to sell you a car, even if it means giving you a few hundred more than your trade is really worth...they can just absorb that loss in the profit margin. PLEASE PLEASE PLEASE if you plan on trading your car, do not take Kelley Blue Book's word on how much it's worth...or NADA Guides. You WILL be heartbroken when the dealer tells you how much they will give you for your sled. If you are going to use the internet to determine your car's value, go to Edmunds.com and after you type in all the equipment, color, mileage, and your ZIP code, make sure you select AVERAGE condition. I know, you think your car is in tip-top shape like it just rolled off the assembly line. Well guess what, it's not. The only car in "Excellent," "Clean," or "Outstanding" condition is a car on a dealer's showroom floor.

Anyway, after you swallow your pride and click the button, the value that pops up will still generally be more than the ACV (actual cash value), so subtract a few hundred and you should get an idea. The main problem people have is taking a website's word for it, even though NO website will cut you a check for any amount they say your car is worth.

Still, do not expect the dealer to initially offer you this amount up front. The first offer will be low. Then again, do not expect thousands more than that first offer. If you can get the dealer to settle for $500 - $750 more than the initial offer, take it...you aren't going to get any better. Just to be sure the dealer is telling you the truth, ask him to show you the BLACK BOOK value and how he arrived at the trade figure. The Black Book is a subscription car value guide that most dealers receive. It is the most reliable guide out today, as it bases trade values on what cars go for at auction. If a dealer refuses to show you their reasoning behind their numbers, do not buy from them. There are geniuinely respectable dealers out there who are just trying to make a living and do not need to knock people's heads off to be satisfied. These quality dealers should have no problem showing you the Black Book, or the invoice for a new car. Oh, and used cars don't have invoices.

It's a simple thing, really...if you say you will take NOTHING less than $8,000 for your trade, no matter how crappy it is, but the dealer can buy the exact same car, with less miles, and in a lot better shape for $5,000, why should he buy yours?

For a good car deal, it's all about being fair. Everyone hates paying more money for a car then they should, but rest assured the dealer is not going to take a loss. The dealer will mark up their cars at an astronomical figure, which is normal...everyone negotiates the price no matter what the window sticker says, especially on used cars. Everyone negotiates their trade-in value, no matter what the dealer offers. Just don't expect the dealer to make thousands of dollars worth of price concessions.

Think of it this way...whatever job you do, would you let a customer, or your boss even, tell you that you need to do your job for free? Would you perform your duties if you knew you were not going to get paid for your efforts? I think not...after all, you are working so you can get paid and make a living...which is exactly what car dealers are doing as well.

Stay tuned, film at 11. :)

Ok, gimme more for my trade!

2005-09-10T21:10:00.000-07:00

Well, I originally posted that I would put one cartoon every week...but I got on a roll earlier today and made a couple more. So, enjoy!

This first one is a bit of an education tool. Everyone knows car dealers have "BIG SALES EVENT!!!," or "SAVE HUGE $$$$!!!!!!" Well here's the real deal. Everything on the dealer's lot is ALWAYS on sale. Think of it as an auction of sorts...the dealer will sell the car to the highest bidder at the time. So, if you are the only one bidding, chances are he will sell it to you if you make a REASONABLE offer...define reasonable, you ask? Well...that's up to the dealer.

You know...over the years I have had a LOT of people tell me that there is entirely too much paperwork involved in buying a car. So to those car buyers with carpal tunnels, good luck!

First Car Sales Comic of the On The Lot Series

2005-09-09T21:07:00.000-07:00

Okay, I will try to keep this as simple as possible. I have been in the car business for almost 2 years and met with a wide range of people, salesmen, managers, etc. I am opening my own business soon, so I am taking the opportunity to poke fun at the car business and all it entails.

In doing so, I will have periodic comics related to this purpose. Enjoy the first of many!

A quick glossary of jargon you may encounter while reading...

Salesman: A generic term meaning anyone who sells new or used cars. Can be male or female.
Up: Customer
Skate: One salesman steals a customer from another
Half-deal: When two salesmen work with the same customer, the deal becomes split between the two, generating a half-deal.
Greenpea: New salesman A.K.A. newbie, rookie, the new guy.
Gross: Gross profit, the difference in the amount of money for which a car is sold and for which it was acquired. Salesmen generally receive 20% commission on this amount. $5,000 gross = $1,000 commission. Typically more on used cars than new cars.
Four Square: A worksheet many dealerships use by dividing the deal into four aspects. 1 - Trade Value. 2 - Down Payment. 3 - Price on the dealer's car. 4 - Monthly Payment.
Lemon: A piece of crap car. A.K.A. "piece" or "sled"
App: Credit application
Upside Down: When a customer owes more money on their trade-in than it is worth. A.K.A. negative equity.
Invoice Price: The amount of money for which a dealership acquires a vehicle. A.K.A. "invoice"
T.O.: A "Turn-over." When a salesman cannot proceed in the sales process, he or she T.O.'s to a sales manager or a more senior salesman.