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 |