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Dictionary of Terms and Acronyms

  • Aftermarket Part

    Goods not for use as original equipment in the production of light-duty vehicles or heavy-duty vehicles, ie...

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  • Big Three

    General Motors, Ford and Chrysler.

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  • Concept Vehicle

    A current production vehicle modified for installation of new design concepts for evaluation of environment...

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  • Corporate Average Fuel Economy (CAFE)

    Regulation enacted in 1975 which requires a motor vehicle manufacturer to classify its U.S. vehicle fleet s...

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  • Cost of Production

    Actual cost to the manufacturer of producing a vehicle (does not include mark-up)

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  • Days' Supply

    Number of days needed to sell all vehicles in inventory, based on the previous month's sales rate.

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  • Dealer Principal

    The individual or corporation that owns and controls one or a number of auto dealerships.

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  • Distributor

    Synonymous with wholesalers; distributors perform many of the same functions as wholesalers, such as sellin...

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  • Distribution Channel

    Is the path goods take as their title transfers from producer to consumer. The title transfer for consumer ...

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  • Fleet Sales

    The purchase of vehicles by a business that meet a minimum requirement of units sold.

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  • Gross Vehicle Weight (GVW)

    Maximum legal weight at which a vehicle can be operated.

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  • Independent Repair Shop

    Small service outlet offering specialized repair services. 

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  • Manufacturer's Suggested Retail Price (MSRP)

    Dealers typically sell at a discount to this price.

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  • Program Cars

    Automobiles sold by manufacturers for fleet use. Usually applies to very large fleets, such as those of car...

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  • Vehicle Identification Number (VIN)

    Number assigned to a vehicle by the manufacturer primarily for registration and identification purposes (co...

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