The holdback and the dealer cost are not the same, but both of them can be used to provide you with the right price to pay for any kind of new car. If you find out the holdback and dealer cost of the car that you want, then you can be confident in the fact that you are paying the lowest possible price for your new car, truck, or SUV!
The holdback,dealer cost and other pricing information can be yours by simply requesting a FREE online price quote. You will instantly be connected to pre-qualified dealers in your area to give you the fair selling price for any kind if new car, truck, or SUV.
Requesting a FREE dealer cost price quote is the quick and easy way to start saving on your vehicle! Pay below invoice price by simply knowing the dealer cost!
There is no need to visit multiple dealerships, and there is no obligation to buy. Request a FREE online price quote to reveal the true dealer cost of the vehicle that you want in no time at all. You will also find:
- The top local deals from U.S. certified car dealers in in Virginia.
- Updated pricing and discount information on the car that you want, including the latest leasing and financing offers with low monthly payments!
- Available $0 down payment offers with low interest rates on all makes and models of new vehicles!
- Secret incentives and hidden rebate offers exclusively reserved for online shoppers!
The Dealer Holdback – Uncovered
The dealer holdback is simply an incentive given by the manufacturer to the car dealer. The dealer can use the amount of the dealer holdback for a variety of reasons, such as paying for showroom expenses, dealer overhead, salesman’s commissions, etc. But the dealer can also pocket the holdback as added profit.
Remember that the holdback will be ‘held back’ or ‘given back’ to the dealership after successfully disposing or selling a particular car, provided that car sits for no longer than ninety days on the dealership lot. This is the reason why consumers should deduct the holdback from the price of the car, revealing the true dealer cost.
When the dealer buys the car from the factory, they finance the vehicles through a bank or a factory-accredited financing unit. The manufacturer will pay for the accumulated interest rate of the loan for the first ninety days, since the cost is already included in the invoice price or the MSRP of the vehicle.
If the dealer manages to sell the car in less than ninety days, then they can keep all the holdback as additional profit. If not, the car dealer will use the holdback to pay for the interest of the loan.
The holdback is estimated to be 2% to 3% of the MSRP or the invoice price. When it all adds up, the car dealer can earn generous profits just by simply selling their inventory in less than ninety days.
The Factory Invoice Price
The factory invoice price is the exact amount that the factory is charging the car dealer. This is the real base price of the car, or the wholesale price of a particular vehicle that is displayed inside the showroom. The factory invoice is also known as the dealer invoice or the invoice price.
The trouble with the factory invoice is that only the car dealer and the manufacturer will actually know the real amount on the invoice. If car dealers will consistently sell new cars below dealer invoice, then how can they not make a profit and still remain in business? This is due to the presence of the holdback and certain factory to dealer incentives.
Car buyers should also be aware of factory to dealer incentives. These types of incentives are not usually advertised, and can range from hundreds to thousands of dollars. Factory to dealer incentives are also seasonal and hard to find, and they can also change frequently depending on current selling conditions.
Requesting a FREE online price quote will reveal the dealer cost of the car that you want, so you can pay below invoice and get fantastic savings. This is the easiest, safest, and most hassle-free way to get big savings on your new car.