The Next Car - car buying and car selling tips

Monday, January 23, 2006

Dealer holdback car price guide

Here is a handy "Dealer Holdback" car price guide which shows you how much car companies give back to car dealers for selling a car. Knowing dealer holdback isn't going to save you thousands of dollars on your next new car purchase, but as they say, "it can't hurt."

Dealer holdback is a percentage of either the MSRP or invoice price of a new vehicle (depending on the manufacturer) that is repaid to the dealer by the manufacturer. The holdback is designed to supplement the dealer's cash flow and indirectly reduce "variable sales expenses" (code words for sales commissions) by artificially elevating the dealership's paper cost.

Dealer holdback at Edmunds car price guide


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