Glossary of dealer vendor terms.

An agreement where a lead provider repurchases or replaces leads that don't meet the contracted quality standards (e.g., wrong phone number, fake employment). Strong buy-back terms protect dealers from paying for unusable data.

A finance company owned by or affiliated with a vehicle manufacturer (Ford Credit, GM Financial, Toyota Financial Services). Distinct from third-party lenders, but relevant for understanding lead provider partnerships.

The percentage of leads that become actual sales. In Canadian subprime lead generation, typical dealer conversion rates range from 10% to 30%, depending on lead quality, dealer process, and credit tier.

The price a dealer pays for each individual lead. Subprime auto leads in Canada typically range from $15 to $80+ depending on exclusivity, tier, and provider.

In warranty and GAP insurance, the portion of the premium retained by the dealer after the underwriter's costs and reserves are paid. A key F&I profit driver.

A lead sold to only one dealer. The opposite of shared leads, which may be sold to multiple dealers competing for the same customer. Exclusive leads cost more but typically convert at higher rates.

The dealership department responsible for arranging financing and selling additional products (extended warranty, GAP insurance, paint protection) after the vehicle sale.

A lead generated within minutes or hours, where the consumer has just submitted an application and is actively shopping. Distinct from aged leads, which are days, weeks, or months old.

An F&I product that covers the difference ("gap") between what an insurance company pays out on a totaled vehicle and what the customer still owes on their loan. Common in subprime financing where loan balances often exceed vehicle value.

Two types of credit checks. Hard pulls affect a consumer's credit score and are run when the dealer formally applies for financing. Soft pulls don't affect credit and are used by lead providers to pre-qualify leads.

A lead the consumer initiates by filling out a form, calling, or chatting on a website. Generally higher quality than out-bound leads.

A classification of leads by credit quality. Common Canadian tiers: Prime (700+ credit), Near-prime (620–700), Subprime (550–620), Deep subprime (below 550).

A phone-based lead where the lead provider's call center pre-qualifies the consumer, then transfers them directly to the dealer's F&I or sales team in real time. Higher cost than form-based leads, typically much higher conversion.

A lead provider's process of manually reviewing each lead before delivery — verifying phone numbers, employment, addresses. Differs from automated-only verification.

Credit tier between subprime and prime, generally credit scores 620–700. Buyers in this tier can usually qualify for financing with reasonable rates.

Ontario Motor Vehicle Industry Council — the regulatory body that oversees licensed motor vehicle dealers and salespeople in Ontario. Other provinces have similar bodies (AMVIC in Alberta, VSA in BC).

A consumer whose credit and employment information has been reviewed by a lead provider, indicating they likely meet basic financing criteria. Not the same as pre-approved by a lender.

The highest credit tier, typically credit scores above 700. These buyers qualify for the lowest interest rates and most favorable terms.

Lead provider's terms for replacing or refunding bad-data leads. Common windows: 24 hours, 48–72 hours, or up to 7 days from delivery.

A lead where the consumer's phone number has been confirmed via text message verification. Reduces invalid phone numbers significantly.

Credit tier covering buyers with credit scores generally between 550 and 620. The largest segment of dealer-side lead generation in Canada.

Also called extended warranty. An agreement that covers repair costs after the manufacturer's warranty expires. A major F&I product category.