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Dealer 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 $40,000 car is substantial - $1,200. The dealer could sell you the car at his invoice and still have a big profit in the deal. Remember this when you are getting down to the final price.

 

    Manufacturer
    Holdback Amount
     Acura
3% of MSRP
     Alfa Romeo
None
     Audi
None
     BMW
None
     Buick
3% of MSRP
     Cadillac
3% of MSRP
   Chavrolet 
3% of MSRP
     Chrysler
3% of MSRP
     Dodge
3% of MSRP
     Ford
3% of MSRP
     GMC
3% of MSRP
    Honda
3% of MSRP
     Hyundai
2% of Dealer Invoice
Infiniti
2% of MSRP
    Isuzu 
3% of MSRP
    Jaguar
2% of MSRP
    Jeep
3% of MSRP
     Kia
3% of Invoice
    Land Rover 
None
     Lexus
2% of MSRP
     Lincoln
3% of MSRP
   Mazda 
2% of MSRP
     Mercedes-Benz
3% of MSRP
     Mercury
3% of MSRP
    Mini
None
     Mitsubishi
2% of MSRP
     Nissan
2% of MSRP
     Pontiac
3% of MSRP
     Porsche
None
     Saab
3% of MSRP
     Saturn
3% of MSRP
     Subaru
3% of MSRP
     Suzuki
3% of MSRP
     Toyota
   Scion
2% of MSRP
None
     Volkswagen
2% of MSRP
     Volvo
1% of MSRP