Do You Speak "Dealership"?

Jun 02, 2025

Have you ever stopped to think about all the financial terminology that gets tossed around in an automotive dealership? I started making a list the other day, and it’s staggering. I originally planned to include a short list in this post—but 50 terms in, I realized there was no way to squeeze it all into one blog without losing everyone’s attention.

Sales. Cost. Gross Profit. Operating Profit. Net Profit. Expense. Overhead. Absorption. Inventory. Receivable. Payable. And that’s just the beginning! Each of these terms can be modified with words like Retail, Wholesale, Fleet, Adjusted, Selling, Variable, Fixed—adding even more complexity.

And then come the acronyms:
PVR, PRU, PNVR, PUVR, ELR, PPD, ACE, YOY, YTD, CM, TM… need I go on?

Ever feel like you’re the only one confused by a report, comment, or meeting filled with these terms? Let me assure you—you’re NOT alone. In fact, we’re all confused by them at some point (sometimes more than once!).

The best thing you can do when something doesn’t make sense is simple: ask for clarification. Don’t be afraid to pause a conversation or reply to an email with, “Can you explain what that means?” Most people will appreciate the honesty—and chances are, someone else in the room had the same question.

But I get it. Sometimes we feel too shy or self-conscious to speak up. That confusion can turn into frustration—or worse, we start using a term incorrectly because we never really understood it in the first place. (Been there. More than once!)

That’s exactly why I launched PPD U—an online training university built specifically for the automotive dealership community. My goal is to share what I’ve learned over the past 22 years and help you build confidence and understanding, wherever your career is headed.

Thanks for stopping by. I’m excited to grow this platform and create content that truly helps. I hope you’ll engage with me along the way. This is a safe space—if you need something, reach out. I’m here to help.

Want to learn some basic Automotive Dealership Terminology or check your understanding of the basics?  Check out this FREE self paced primer, Auto FS 101!

Enroll in Auto FS 101 FREE

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