Car salesman

[jmsa540]

Id like to learn.

Please share your knowledge and teach me about hot to get the best deal on a vehicle.

Isnt there a thing called "holdback"? Roughly 3-5% off of invoice and thats literally the bottom dollar the dealer can let the vehicle go for otd?

Or am i wrong?

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[Weather Man]

Dealers will NOT talk about hold back. They may use it to dump a car that just will not sell and they just want the damn thing gone.

 

[SHOdown220]

The internet has ruined profits for most dealers. You can compare prices from all over the state in 5 minutes. Most of them have moved onto trying to sell you stuff in the finance office or dealer add ons to make their money.

 

[jmsa540]

Okay, but would it be safe to say that the best possible price on a new car would be invoice minus the holdback (3-5%)?

Dealers will NOT talk about hold back. They may use it to dump a car that just will not sell and they just want the damn thing gone.

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[Weather Man]

Okay, but would it be safe to say that the best possible price on a new car would be invoice minus the holdback (3-5%)?

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Why would a dealer sell a car at cost? I could see a dealer playing the numbers game with a trade, but most won't since the new car and used car side are separate.

 

[jmsa540]

I think you might be overreading my statement.

All im ststing is literally the lowest price possible would be invoice minus the holdback.

Im asking if this is correct and im also asking what exactly is the holdback percentage?

And i understand your question but at cost is always better than a loss of original purchase price from the manufacturer.

Why would a dealer sell a car at cost? I could see a dealer playing the numbers game with a trade, but most won't since the new car and used car side are separate.

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[noco5.0]

Not a car salesman but I think it depends entirely on the car. Beyond the price MSRP, Invoice, and Holdback dealers sometimes get incentives from the factory to move cars that aren't selling. There is a large dealer in Virginia that is selling leftover stripped down Hellcats for 4 percent under invoice plus rebates. The only caveat is they have a high dealer handling fee. Most dealers I've seen offering aggressive prices have high fees, add ons, or will completely low ball you on your trade or require you finance through them at a higher interest rate.....they have to make a profit somewhere.

 

[04MysticCobra]

Okay, but would it be safe to say that the best possible price on a new car would be invoice minus the holdback (3-5%)?

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Holdback is always 0-3% and never more. Here is the current list of 2020 manufacturers and their holdback.


2020 Dealer Holdback Chart by Manufacturer
Manufacturer Dealer Holdback
Acura 2% of base MSRP
Audi No dealer holdback available
BMW No dealer holdback available
Buick 3% of total MSRP
Cadillac 3% of total MSRP
Chevrolet 3% of total MSRP
Chrysler 3% of total MSRP
Dodge 3% of total MSRP
Fiat 3% of total MSRP
Ford 3% of total MSRP
GMC 3% of total MSRP
Honda 2% of base MSRP
Hyundai 3% of total MSRP
Infiniti 1.5% of base MSRP
Jaguar No dealer holdback available
Jeep 3% of total MSRP
Kia 3% of base MSRP
Land Rover No dealer holdback available
Lexus 2% of base MSRP
Lincoln No dealer holdback available
Mazda 1% of base MSRP
Mercedes Benz 1% of total MSRP
Mercury 3% of total MSRP
Mini No dealer holdback available
Mitsubishi 2% of base MSRP
Nissan 2% of total invoice
Porsche No dealer holdback available
Ram 3% of total MSRP
Scion No dealer holdback available
Smart 3% of total MSRP
Subaru 2% of total MSRP (may vary in the Northern U.S.A.)
Toyota 2% of base MSRP
Volkswagen 2% of base MSRP
Volvo 1% of base MSRP

 

[jmsa540]

That makes sense; illegal add on fees to make some extra money.

Not a car salesman but I think it depends entirely on the car. Beyond the price MSRP, Invoice, and Holdback dealers sometimes get incentives from the factory to move cars that aren't selling. There is a large dealer in Virginia that is selling leftover stripped down Hellcats for 4 percent under invoice plus rebates. The only caveat is they have a high dealer handling fee. Most dealers I've seen offering aggressive prices have high fees, add ons, or will completely low ball you on your trade or require you finance through them at a higher interest rate.....they have to make a profit somewhere.

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[jmsa540]

Can you define "base"?

The lowest trim of that model or the lowest msrp price of a certain model before options are added on to that specific vehicle?

Good info. Where did you find?

Holdback is always 0-3% and never more. Here is the current list of 2020 manufacturers and their holdback.


2020 Dealer Holdback Chart by Manufacturer
Manufacturer Dealer Holdback
Acura 2% of base MSRP
Audi No dealer holdback available
BMW No dealer holdback available
Buick 3% of total MSRP
Cadillac 3% of total MSRP
Chevrolet 3% of total MSRP
Chrysler 3% of total MSRP
Dodge 3% of total MSRP
Fiat 3% of total MSRP
Ford 3% of total MSRP
GMC 3% of total MSRP
Honda 2% of base MSRP
Hyundai 3% of total MSRP
Infiniti 1.5% of base MSRP
Jaguar No dealer holdback available
Jeep 3% of total MSRP
Kia 3% of base MSRP
Land Rover No dealer holdback available
Lexus 2% of base MSRP
Lincoln No dealer holdback available
Mazda 1% of base MSRP
Mercedes Benz 1% of total MSRP
Mercury 3% of total MSRP
Mini No dealer holdback available
Mitsubishi 2% of base MSRP
Nissan 2% of total invoice
Porsche No dealer holdback available
Ram 3% of total MSRP
Scion No dealer holdback available
Smart 3% of total MSRP
Subaru 2% of total MSRP (may vary in the Northern U.S.A.)
Toyota 2% of base MSRP
Volkswagen 2% of base MSRP
Volvo 1% of base MSRP

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[DSG2003Mach1]

some of this is probably covered in Nick's dealer question thread. You also have to consider the dealer's add program costs (charged by Ford) in the cost of the vehicle, it does differ and I'm assuming it's regional.

 

[04MysticCobra]

Can you define "base"?

The lowest trim of that model or the lowest msrp price of a certain model before options are added on to that specific vehicle?

Good info. Where did you find?

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Found it here while searching for dealer holdback info.

Dealer Holdback | Figure New Car Holdback | AutoCheatSheet.com

 

[jmsa540]

Found it.

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[98 svt]

With a used car, it's a matter of sticking to your guns.
I was able to buy a Grand Cherokee Limited for $10,500 when the asking price was $14k. This was at a Jeep dealer. They made a "final offer of $11k, so I got up and was walking out. Literally my hand on the exit door of the showroom. The owners son came and asked me if I was willing to walk out on the deal over $500. I turned and asked him if HE was willing to let ME walk out over $500
When it was all said and done, the owners son offered me a job lol.

 

[jmsa540]

Heres my next question. The same day you bought your car, what did it book for ppv?

With a used car, it's a matter of sticking to your guns.
I was able to buy a Grand Cherokee Limited for $10,500 when the asking price was $14k. This was at a Jeep dealer. They made a "final offer of $11k, so I got up and was walking out. Literally my hand on the exit door of the showroom. The owners son came and asked me if I was willing to walk out on the deal over $500. I turned and asked him if HE was willing to let ME walk out over $500
When it was all said and done, the owners son offered me a job lol.

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[98 svt]

Heres my next question. The same day you bought your car, what did it book for ppv?

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Is that like the NADA ya mean?
I was showing the salesman similar Jeeps (though with less miles) for anywhere from $10-$12k. He kept getting up from his desk to go talk with the boss (owner's son). I'm sure they were just talking aboutast nights ballgame or whatever though.
When I got up to walk out is when the salesman finally grabbed the boss and I was able to go back and forth with him.

 

[jmsa540]

Ya kbb or nada book values for private party.

Is that like the NADA ya mean?
I was showing the salesman similar Jeeps (though with less miles) for anywhere from $10-$12k. He kept getting up from his desk to go talk with the boss (owner's son). I'm sure they were just talking aboutast nights ballgame or whatever though.
When I got up to walk out is when the salesman finally grabbed the boss and I was able to go back and forth with him.

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[13COBRA]

Ford's holdback is now 2%.

The holdback is for the dealer for holding costs on the interest they pay while the vehicle is in their possession.

The lowest possible price you can buy a new car for? $1.
The lowest possible price a dealer would sell you a new car for? Whatever makes sense to them.

This isn't a black/white game of total sums. There are some cars I'd sell on the first day and lose $1,000 on. There are some cars I wouldn't sell on the first day making $5,000.

Kinda a weak question without a lot of background information explaining further.

If you're shopping for a car, shop far and wide. I guarantee any competent dealer that you're dealing with will have the same data and should be able to justify their final price within the market. If they can't, buy somewhere else.

The 'best deal' on a new vehicle isn't based on how much you can negotiate, it's based on the rest of the market and what they're selling for. If you sit down and try to negotiate with me and I know the market will bear my price, we'll kindly shake hands and you'll be on your way.

 

[jmsa540]

Very well said. Thank you for your input.

Ford's holdback is now 2%.

The holdback is for the dealer for holding costs on the interest they pay while the vehicle is in their possession.

The lowest possible price you can buy a new car for? $1.
The lowest possible price a dealer would sell you a new car for? Whatever makes sense to them.

This isn't a black/white game of total sums. There are some cars I'd sell on the first day and lose $1,000 on. There are some cars I wouldn't sell on the first day making $5,000.

Kinda a weak question without a lot of background information explaining further.

If you're shopping for a car, shop far and wide. I guarantee any competent dealer that you're dealing with will have the same data and should be able to justify their final price within the market. If they can't, buy somewhere else.

The 'best deal' on a new vehicle isn't based on how much you can negotiate, it's based on the rest of the market and what they're selling for. If you sit down and try to negotiate with me and I know the market will bear my price, we'll kindly shake hands and you'll be on your way.

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[CobraBob]

Good info, Nick. I was waiting for you pop in to clean the air a bit.