Dealer Holdback

July 27, 2016
Posted by: admin10

Dealer holdback amounts for each National auto brand.

Dealer Invoice is generally the amount the dealer pays the manufacturer for the vehicle. Because Dealer Holdback is paid to the dealer after the vehicle is sold, it represents an additional profit for the dealers that is not immediately available to consumers. This is one reason why some dealers are able to sell some vehicles below invoice and still make a profit.

Many believe dealer holdback serves a purpose by allowing dealerships to play the “invoice price” game for all it’s worth: they can advertise cars at invoice price, allow customers feel smart for negotiating down to invoice price, or make customers feel guilty for demanding a sale at invoice price.

 

Dealer holdback can be up to 3% of the msrp or invoice price.

Some European car manufactures do not have holdback.

 

Dealer Holdback by Auto Manufacture

  • Acura 2% of the Base MSRP
  • Audi No holdback
  • BMW No holdback
  • Buick 3% of the Total MSRP
  • Cadillac 3% of the Total MSRP
  • Chevrolet 3% of the Total MSRP
  • Chrysler 3% of the Total MSRP
  • Dodge 3% of the Total MSRP
  • FIAT 3% of the Total MSRP
  • Ford 3% of the Total MSRP
  • GMC 3% of the Total MSRP
  • Honda 2% of the Base MSRP
  • Hyundai 3% of the Total MSRP
  • Infiniti 1.5% of the Base MSRP
  • Jaguar No Holdback
  • Jeep 3% of the Total MSRP
  • Kia 3% of the Base Invoice
  • Land Rover No Holdback
  • Lexus 2% of the Base MSRP
  • Lincoln No Holdback
  • Mazda 1% of the Base MSRP
  • Mercedes-Benz 1% of the Total MSRP
  • Mercury 3% of the Total MSRP
  • MINI No Holdback
  • Mitsubishi 2% of the Base MSRP
  • Nissan 2.8% of the Total Invoice
  • Porsche No Holdback
  • Ram 3% of the Total MSRP
  • Scion No Holdback
  • smart 3% of the Total MSRP
  • Subaru 2% of the Total MSRP (Can differ in Northeastern U.S.)
  • Toyota 2% of the Base MSRP
  • Volkswagen 2% of the Base MSRP
  • Volvo 1% of the Base MSRP

Follow these guidelines when calculating holdback.

If a holdback is calculated from the:

Total MSRP: Consumers must include the MSRP price of all options before figuring the holdback.
Base MSRP: Consumers must figure the holdback before adding desired options.
Total Invoice: Consumers must include the invoice price of all options before figuring the holdback.
Base Invoice: Consumers must figure the holdback before adding desired options.

It is often the case when a dealership is locating a vehicle for you, the deal might not have holdback if the other dealer trade does not want to share the vehicle for the same invoice amount.  Or another dealer might have the vehicle you need but they have added accessories to it that will increase your overall price.  Most of the time you will get your best deal for a vehicle if you buy what’s in the dealers inventory, and don’t take a chance swapping in a vehicle and loosing its  holdback and fees.

Also some dealers will save you more if you take something in stock. They would rather stop paying interest on a vehicle in their inventory. So be sure to listen what the dealer has to say. Make your decision when you have heard all your options.

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