Archie Glossary

MSRP

Manufacturer’s Suggested Retail Price

The price the manufacturer recommends the dealership sell the vehicle for. Think of it as the sticker price — not necessarily the final price.

Archie Tip: High-demand vehicles may sell above MSRP through something called Additional Dealer Markup (ADM).

Out-the-Door Price

The true total cost of the vehicle including taxes, dealer fees, registration, and add-ons.

Archie Tip: Always negotiate Out-the-Door pricing — not monthly payments. The lower the out-the-door vehicle price, the lower the payments.

Four Square

A traditional dealership worksheet used during car negotiations that divides the deal into four sections: vehicle price, trade-in value, down payment, and monthly payment.

Archie Tip: The Four Square method can shift focus toward the monthly payment instead of the total out-the-door price. Always ask for a complete itemized breakdown and review the full deal structure carefully.

APR

Annual Percentage Rate

The interest rate charged on your auto loan.

Archie Tip: Dealers can sometimes mark up your interest rate above what the bank originally approved.

Doc Fee

Documentation fees are dealer fees charged for processing paperwork and administrative tasks.

Archie Tip: Be sure to know the doc feesin your state.

Dealer Addendum

A second sticker added by the dealership showing dealer-installed products or additional charges.

Common examples include:

• Window tint
• Nitrogen tires
• Wheel locks
• Paint protection
• VIN etching

Archie Tip: Most if not all add-ons are negotiable — even if the dealership says they aren't.

Additional Dealer Markup (ADM)

An additional charge added above MSRP.

Archie Tip: This is pure additional dealer profit and does not come from the manufacturer.

Trade-In

When you sell your current vehicle to the dealership as part of buying another car.

Archie Tip: Compare your trade offer against CarMax, Carvana, or KBB Instant Cash Offer.

Negative Equity

Also called being upside down on your loan.

This means you owe more on your vehicle than it is currently worth.

Archie Tip: Long loan terms and low down payments make negative equity more likely.

Money Factor

The interest component of a lease.

Money Factor × 2400 ≈ Approximate APR

Archie Tip: Dealers can sometimes increase the money factor for additional profit.

Residual Value

The estimated value of a leased vehicle at the end of the lease term.

Archie Tip: Ask the dealer to show the official residual percentage used in the lease calculation.

GAP Insurance

Guaranteed Asset Protection covers the difference between what your insurance pays and what you still owe if your vehicle is totaled.

Archie Tip: You may already have GAP coverage through your lender or insurance company for less money.

Extended Warranty

Also called a Vehicle Service Contract.

Coverage that extends beyond the factory warranty period.

Archie Tip: Ask who backs the warranty, what’s excluded, and whether it can be canceled for a prorated refund.

Rebate

Manufacturer-provided cash incentives used to help sell vehicles.

Archie Tip: Rebates usually come from the manufacturer — not the dealership.

VIN

Vehicle Identification Number

A unique 17-digit identifier assigned to every vehicle.

Archie Tip: A VIN can reveal accident history, trim level, recalls, and ownership records.