Mountain Mama wrote: How do you know or find out what the dealer hold back amount is?
Dealer hold-back on all domestic manufacturer vehicles is MSRP minus freight times 3%. It does not vary from vehicle to vehicle and contrary to speculation here from the wise guys does not change whether the dealer sells one or 10,000.
Seems that if the dealer sells one vehicle a month, that 3% * one vehicle would be considerably less than a dealer that sells 100 vehicles per month (100 * 3%). I know our dealer knows how many vehicles they have to sell each month and how much room they have to deal with (they sell 100s each month, have nearly 2000 new vehicles on the lot). They don't like to deal away any of the holdback, but often do to close the deal.
Obviously. But, my point was simply that the hold-back is a constant for the franchise and does not change per car by model nor per car dependent on volume.
Volume is never an indicator of a lower price although large dealers work hard to convince the public of that. A dealer has the independent ability to set their own price on each individual vehicle and that necessary price is a function of expense.
At the end of the day, what actually counts to the dealer will be his average gross profit per unit sold. The more potential deals made, the more potential to convince more buyers to pay a larger gross profit. Some larger dealers have extremely high gross profit margins compared to other dealers of the same make.
Most of us have no access to actual dealer cost, since there are many incentives available that are not published. I've found the best way to get close to what dealers may be willing to take is to examine big city newspaper ads. In Missouri, I'll look at KC and St. Louis. They will usually advertise a base model of some sort for an attractive price -- may be an upper level model. Look that same model up on their website -- usually the stock number is in the ad. Compare the MSRP with their asking price. This gives you a rule of thumb about what their bottom dollar will be on any similar model, once you compute the percentage difference on the stock number you examined. If you are trading -- well, you have another concern, but on a cash deal, it puts you closer to but certainly not in the driver's seat.
pyoung47 wrote: Most of us have no access to actual dealer cost, since there are many incentives available that are not published. I've found the best way to get close to what dealers may be willing to take is to examine big city newspaper ads. In Missouri, I'll look at KC and St. Louis. They will usually advertise a base model of some sort for an attractive price -- may be an upper level model. Look that same model up on their website -- usually the stock number is in the ad. Compare the MSRP with their asking price. This gives you a rule of thumb about what their bottom dollar will be on any similar model, once you compute the percentage difference on the stock number you examined. If you are trading -- well, you have another concern, but on a cash deal, it puts you closer to but certainly not in the driver's seat.
The website I posted has what the dealer hold back is on various models.
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