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 was negotiating from kbb.com invoice prices. The dealer argued with me that I was not including fees actually charged by BMW on invoice. In Miami area, these total about $560. I pointed out that since I was ordering a car and would pick it up the day it arrived, the dealer would pay no finance charges so that the 2.2% holdback would be pure profit thus putting his profit up to 5% total. I have no idea if this did any good, but eventually I got my price--$1500 over kbb.com invoice price.