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Old 04-23-2006, 03:14 PM   #2
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Location: Des Moines, IA
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From Safecarguide.com



"How Holdback Effects You - There is usually more money available to play with than your salesperson will admit to. Several hundreds of dollars in extra cash can be made by a shrewd dealer who sells a car "at invoice" without acknowledging that they get a holdback payment or a rebate from their manufacturer. Unless you're buying an Audi, BMW, Jaguar, Land Rover, Mini Cooper, Porsche or Saturn rest assured that your dealer is getting a holdback payment which may amount to over $1000 on some higher priced models.

However don't expect a holdback discount on every vehicle. If a car has been sitting on the lot for 90 days or more, all of the potential holdback profits have been wasted on interest payments that the dealer makes to floor plan (finance) the vehicle. After 90 days, the dealership has to dip into its own profits to keep the car in inventory. So on vehicles that the dealer has had for over 90 days, holdback won't help you at all."
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