Buying a car can be stressful.
Next time you’re negotiating, you might want to consider something called dealer “holdback.”
Money site Phroogal explains that dealerships get money back from some manufacturers at the point of sale.
This is called “holdback.”
Dealerships also get substantial bonuses from manufacturers that basically make or break their month/ quarter/ year.
This inflow will certainly be taken into consideration when pricing cars.
Their holdback incentive is not included in the invoice price you see on the car.
It says so right here on the invoice."
Fox Businessbriefly mentions this item, too.
Some dealers will say they can’t show you the holdback price.
Pay 310 was a line on General Motors invoices just for holdback.
On the other hand,Edmundssays negotiating holdback can have a negative impact on the whole process.
He says dealers are unlikely to directly cut into the holdback price when negotiating the price of the car.
But you could still negotiate knowing that the invoice price is probably two to three percent lower.
For more tips, check out Phroogal’s full post.
Here’s How to Deal With the Salesman| Phroogal
Photo byPaulo Ordoveza.
