I've been price shopping cars on Edmunds, Kelly Blue Book and a few other sites. All are not telling me about current dealer holdbacks.
Only when I went to Consumer Reports Car Pricing Service and paid $14, did I find the particular car I'm interested in has a dealer holdback of $647.
This turned what I thought was a fairly good offer of only $560 over dealer invoice to over $1,200 over what the dealer will truly pay.
Why don't Edmunds and KBB report these things? Are they in bed with the auto industry, only shamming as giving power and info to consumers?
2007-03-30 08:35:40 · 2 answers · asked by Uncle Pennybags 7 in Cars & Transportation ➔ Buying & Selling
Dealers don't consider holdbacks as profit.
Holdbacks are provided by car manufacturers to dealers as reimbursement for the interest the dealer pays for his loans ("floor plan") to buy the cars from the manufacturer.
If the dealer sells a car quickly, he may make some profit on the holdback. However, if a car doesn't sell quickly, he may actually lose money with the holdback because he's already paid more loan interest than the holdback covers. On average, the dealer breaks even.
2007-03-30 12:44:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Most dealerships will not consider holdback as part of the profit when negotiating for a vehicle. Make your best deal over invoice and be happy with it.
2007-03-30 11:07:41 · answer #2 · answered by Tim P 2 · 0⤊ 0⤋