Holdback: What it is and what it means
HOLDBACK: Holdback is a specific percentage of the car's price that is
credited to the dealer's account periodically by the manufacturer and reduces
his cost by 2-3%. As you can see, 3% on a $20,000 car is substantial -
$600. The dealer could sell you the car at his invoice and still have $300
to $600 profit in the deal. Remember this when you are getting down to
the final price.
|
Manufacturer
|
Holdback Amount
|
|
Acura
|
2% of MSRP
|
|
Alfa Romeo
|
None
|
|
Audi
|
None
|
|
BMW
|
2% of MSRP
|
|
Buick
|
3% of MSRP
|
|
Cadillac
|
3% of MSRP
|
|
Chrysler
|
3% of MSRP
|
|
Dodge
|
3% of MSRP
|
|
Eagle
|
3% of MSRP
|
|
Ford
|
3% of MSRP
|
|
Geo
|
3% of MSRP
|
|
GMC
|
3% of MSRP
|
|
Honda
|
2% of MSRP
|
|
Hyundai
|
2% of Dealer Invoice
|
|
Infiniti
|
2% of MSRP
|
|
Isuzu
|
3% of MSRP
|
|
Jaguar
|
2% of MSRP
|
|
Jeep
|
3% of MSRP
|
|
Kia
|
None
|
|
Lexus
|
2% of MSRP
|
|
Mazda
|
2% of MSRP
|
|
Mercedes-Benz
|
2% of Dealer Invoice
|
|
Mercury
|
3% of MSRP
|
|
Mitsubishi
|
2% of Dealer Invoice
|
|
Nissan
|
2% of MSRP
|
|
Oldsmobile
|
3% of MSRP
|
|
Plymouth
|
3% of MSRP
|
|
Pontiac
|
3% of MSRP
|
|
Porsche
|
3% of Dealer Invoice
|
|
Saab
|
3% of MSRP
|
|
Saturn
|
None
|
|
Subaru
|
3% of MSRP
|
|
Suzuki
|
None
|
|
Toyota
|
2% of Dealer Invoice
|
|
Volkswagen
|
2% of MSRP
|
|
Volvo
|
Varies by model $700-$900
|
|
