Article Continued at TrueCar.comWhat is Dealer Holdback?
A TrueCar user recently asked the question, what is dealer holdback? We’ve consulted with our new car shopping and pricing experts to provide the following explanation:
Dealer Holdback is an amount paid to the dealer by the manufacturer for each new vehicle sold. It may be calculated as a percentage of Invoice Price or Manufacturer’s Suggested Retail Price (MSRP) including or excluding options, or as a fixed amount, and the calculation and amount varies across manufacturers. A typical estimate is 2 percent of the total vehicle Invoice, though the actual amount of the Dealer Holdback can actually range from zero to 3 percent of the total vehicle Invoice.
Where did you drive the Regal Automatic? On Line? Did you Order the Autoatic, then send it back to get a Stanard? What did you do with your trade in? "Did you trade a PC in on your Apple Purchase?" Or just put it on your shelf? Who showed you "How to connect your phone, to the Blue Tooth Regal?I ordered my 00 Yukon before they started building them at $500 over invoice. I bought it on the internet from a dealer 60 miles away. I never stepped foot in the dealership until the unit was delivered. The only test drive I took was from a GM sponsored event months after ordering it.
I bought my 01 Alero, without ever driving one. I bought it on the internet from a dealer 90 miles away - at invoice. Car was "in transit" when I put the down paymnet. Showed up a week later to pick it up.
I bought my 03 Yukon XL from the same dealer as I got the 00 Yukon from. I was not looking to trade to an 03, but when I brought the 00 in for service they made me an offer I couldn't refuse on the old one and sold me the 03 at Supplier pricing.
I bought my '11 Turbo 6 spd Regal having driven only an automatic, regularly aspired one in the wrong color. I ordered what I wanted from a dealer 15 miles away who gave me the best deal (at $200 over invoice). No trade in.
More or less, I have been doing "the Blind Eye Purchase" for a Decade and I see nothing wrong with it.
Honestly if GM sold all the cars directly to the consumer from the same number of outlets with the same number of employees making the same amount of money, I think everyone (except the dealership owners) would be better off. We would get more consistent pricing, consistent service, and less dishonesty in the profession of selling cars.
To prove my point, think about Apple Computer vs PC. Apple's are mainly sold thru outlets that Apple owns. The service and customer experience is very highly rated. We pay more for the product, but legions love it. PCs can be had from countless outlets, pricing is all over the place, customer service is a joke.
But this will never happen as state franchise laws likely prohibit this from ever happening.
Here is an interesting read on the subject:
http://www.justice.gov/atr/public/eag/246374.htm
Australia is going through a supermarket "war" at the moment. Our two biggest chains Safeway/Woolworths and their competitor Coles are cutting prices everywhere. Now things are just expensive not over the top!Exactly. People shop around for lots of things. But according to some salesmen, we should simply "eat it" from whichever we go to first. So - if Safeway doesn't have it on sale, I'm not supposed to checkout Lucky's?
I wouldve bought the Regal without a a test drive, but for the first time in four cars, I took a test drive. How could I test trive the manual? They werent available in January!.Where did you drive the Regal Automatic? On Line? Did you Order the Autoatic, then send it back to get a Stanard? What did you do with your trade in? "Did you trade a PC in on your Apple Purchase?" Or just put it on your shelf? Who showed you "How to connect your phone, to the Blue Tooth Regal?
The WWW is a wonderful thing. "Doh!"Who showed you "How to connect your phone, to the Blue Tooth Regal?