In Reply to: comment Re: dealer invoice posted by Alan on April 02, 1999 at 11:47:50:
I sure would like to know if there were any changes in dealer holdback. I have this gut feeling that dealerships are actually happy about the "invoice" price increase. We all know that the invoice price is not what dealers really end up paying for the car because of dealer holdback. A lot of dealers negotiate deals based on "X dollars over invoice", so if the invoice price increases, and BMW bumps up some dealer incentives or dealer holdback, then both BMW and the dealership can win while the customer loses.
Probably true, however it is my understanding that the dealer holdback is not guarenteed. The deslership has to reach it CSI (customer service index) goal, and dealerships are in competition witnin the same area. Dealerships don't always make their CSI goal and when this happens I think they loose their holdback (incentive) money.