In Reply to: Anyone use holdback in negotiating price? Results? posted by MikeW on October 20, 1999 at 15:44:02:
: For those who don't know BMW pays a holdback, which is 2.2% of the Base MSRP, to the dealer for each car sold (at least E46). This is on top of the margin they get on the invoice.
: For those who do know, have you used this as a tool in your negotiations? How? And has it gotten you anything?
I got my dealer to budge a bit, but it wasn't like it was an itemized deduction off the price. Essentially, I went in with all the information I had regarding the dealer costs for the car and options, and indicated that since I was ordering the car I expected a discount for their holdback (since the car wouldn't be sitting on their lot when it arrived, I let them know that I wasn't willing to pay for this freebie for them). We then negotiated a price that we both felt was fair based on the total invoice price and my expected cost while giving them a reasonable profit once everything was taken into consideration...