# F&I glossary — Ascent Dealer Services

Plain definitions of dealership finance and insurance (F&I) terms used on ascentdealerservices.com. These are general industry definitions; program details vary by provider and contract.

## F&I (finance and insurance)
The dealership department that arranges vehicle financing and offers optional protection products, such as service contracts and GAP, after the sale is agreed. Ascent's F&I solutions: https://www.ascentdealerservices.com/finance-and-insurance-solutions/

## F&I manager
The dealership employee who completes the financing paperwork with the buyer, submits the deal to lenders and presents optional protection products. Ascent's F&I coaching: https://www.ascentdealerservices.com/finance-and-insurance-training/

## PVR (per vehicle retailed)
Average F&I gross profit per vehicle sold, usually reported monthly. A common measure of F&I department performance.

## Product penetration
The share of vehicle sales on which a given F&I product is sold. For example, 40% service contract penetration means 40 of every 100 buyers bought a service contract.

## Menu selling
Presenting F&I products on a single menu with several package options, so every customer sees every product in the same way. Menus support consistency and compliance.

## Vehicle service contract (VSC)
A contract that pays for covered mechanical repairs after, or alongside, the manufacturer's warranty. Often called an extended warranty. Ascent's VSC programs: https://www.ascentdealerservices.com/finance-and-insurance-products/vehicle-service-contracts/

## GAP (guaranteed asset protection)
Coverage that pays the difference between what the buyer still owes on a loan or lease and the vehicle's actual cash value if the vehicle is totaled or stolen. Ascent's GAP programs: https://www.ascentdealerservices.com/finance-and-insurance-products/gap-insurance/

## Chargeback
Profit the dealership must give back when a customer cancels a product early, for example when the loan is paid off or refinanced, and the unearned portion is refunded.

## No-chargeback GAP
A GAP program structured so that the dealership is not charged back its GAP profit when a contract cancels early. Terms vary by program.

## Appearance protection
Coverage or treatments for a vehicle's interior and exterior, such as stain, scratch and paint protection. Ascent's page: https://www.ascentdealerservices.com/finance-and-insurance-products/appearance-protection/

## Tire and wheel protection
Coverage for repair or replacement of tires and wheels damaged by road hazards such as potholes and debris. Ascent's page: https://www.ascentdealerservices.com/finance-and-insurance-products/tire-wheel-protection/

## Key replacement
Coverage that pays to replace lost, stolen or damaged vehicle keys and key fobs. Ascent's page: https://www.ascentdealerservices.com/finance-and-insurance-products/key-replacement/

## Dealership reinsurance
An arrangement in which a dealer-owned company takes on the risk, and keeps the underwriting profit and investment income, on F&I products the dealership sells, instead of leaving that profit with the provider. Ascent's reinsurance programs: https://www.ascentdealerservices.com/finance-and-insurance-products/reinsurance/

## DOWC (dealer-owned warranty company)
A company owned by the dealer principal that acts as the obligor on the service contracts the dealership sells, so the dealer keeps the underwriting profit and reserves. One of several dealership reinsurance structures.

## CFC and NCFC
Controlled foreign corporation and non-controlled foreign corporation: offshore reinsurance company structures that dealers can use to participate in the profit on F&I products. Each has different ownership and tax treatment.

## Retro (retrospective commission)
A participation arrangement in which the dealership receives a share of underwriting profit on its F&I products after claims experience is known, without owning a reinsurance company.

## DTI and PTI
Debt-to-income ratio (the buyer's total monthly debt payments divided by gross monthly income) and payment-to-income ratio (the vehicle payment divided by gross monthly income). Lenders use both to approve and structure auto loans.