Originally Posted by tev9999
How does the salesman actually show you holdback? My understanding is that is a monthly kickback based on how many vehicles they sell and other factors. I can't see a salesman knowing it, let alone releasing it. It would be the equivalent of any other company opening all of their books to the customer.
They can show it to you. It's on their invoice sheet. That sheet will show MSRP, Invoice (FWP).. At the bottom of the sheet, it will show Holdback (HB), Affiliate price (FFP), and Employee pricing (EP).
Holdback is meant to cover floor plan and other possible costs. But if a dealer sells a vehicle before these costs start racking up, it's profit to them.
The kickback you're thinking of is a bonus program (Can be monthly, qtrly, annually). Dealers get kickbacks based on the number/types of vehicles they sell... They more they sell, the more they get in kickback. Lots of larger dealers live and die on kickback alone, because they can be substantial.
I have a friend, who's family is owns part of a GM dealership. Last year, he told me they exceeded their annual quota, so they were getting their annual kickback, retro to the 1st vehicle of sold for that year... Every sales rep and got part of it too....
BTW, there can be manufacture to dealer rebates too, just like we as consumers can get manufacture to consumer rebates.