How does dealer holdback help me negotiate the price of a new car?
Simply knowing about auto dealer holdback, gives you more knowledge and negotiating power compared to most new car buyers. If a salesperson claims to be taking a loss on a vehicle, let them know that you are aware of the dealer holdback and its total dollar amount. This will show that you have done your homework. Not all dealers will be willing to share dealer holdback funds with you. This can be affected by secret manufacturer-to-dealer incentives. (read more aCar Dealer Secrets ) How do I calculate the auto dealer holdback? Auto dealer holdback is calculated based on the Base MSRP, Base Invoice Price, Total MSRP or Total Invoice Price.Edmunds.com provides a list of manufacturer holdbacks and the calculation basis to use. When calculating holdback based on: Base of MSRP: do not include the MSRP price of vehicle options or destination charge Base of Invoice Price: do not include the invoice price of vehicle options or destination charge. Total MSRP: include MSRP price of all options, b
