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Re: If you are talking about "holdback" (archive)

[ Follow Ups ] [ 3-series (E46) Message Board ] [ Msg. Board FAQ ]

Posted by S.R. on November 24, 1999 at 09:46:03:

In Reply to: If you are talking about "holdback" posted by Steve S. on November 24, 1999 at 09:27:22:

I'm not even on this board (I have an E36; just checking things out), but there's more to the holdback story:

The holdback covers the dealer's cost of having the vehicle on the lot before it is sold. If the vehicle has been sitting there a while, that holdback money has then been eaten into and the dealer is _not_ going to let you haggle them on it. But if the car is special-ordered (i.e., it never sits on the lot at all), you should keep that 2.2% in mind because it will be going straight into the dealer's pocket.

At least this is how I have understood it -- Jon may or may not back it up. (Requisite disclaimer)

: The holdback (2.2%) is paid to the dealer on the base MSRP of the car. So, if you negotiate a $2,000 over invoice deal...the dealer also gets whatever the base MSRP is on the car TIMES 2.2%. So, in actuality, they get "mo money"..."mo money"..."mo money"..or about $2,734 (in the case of a 328i).

: The salesman would typically get about $400-600 on this deal...then rest going to the mgmt and the dealership itself.

: Hope this helps.

: Steve S.

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