holdback - what the manufacturer will give back to the dealer once the vehicle is sold. most effective for the dealer if they can sell a vehicle within 30days of receiving it. usually 2% of MSRP (sticker) price.
invoice - something you'll never know. it's what the dealer pays to have a vehicle delivered to their lot.
dealer rebate - usually a reduction in price to the end-buyer, which usually indicates the dealer has special arrangements with the manufacturer in order to help sell vehicles.
actual dealer cost = invoice minus all monies they get back plus all monies the dealer had to fork out trying to sell the vehicle (employees, marketing, electric, etc.)
dealer profit = what you paid minus actual dealer costs.
a good deal for you is when dealer profit is between $800-$1500.
to make it more difficult, ask to see the VIR (vehicle > > You need to play the game.
>
> > Walk in with the invoice pricing in hand. Tell them that you understand the
> > following things about the vehicle with the specific options that you are
> > looking at...
> >
> > 1. The invoice price is $x.
> > 2. The dealer hold back is 2% or $y.
> > 3. The dealer rebate is $z.
> > 4. Given all this, you are willing to pay this amount....
> >
>
>
> Excuse me please -- where can I get simple definations for dealer
> holdback and dealer rebate?
>
> Ryan
>
>