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questions about "holdback" and invoice prices

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Old 10-19-2009, 07:18 PM
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Usually a dealer prefers not to disclose holdbacks. They will lie about it if they have to. (talking from my car salesmanship experience). And yes, all cars have holdbacks!!!
Old 10-20-2009, 05:36 AM
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Like with any car company there is always some back end money but the dealership is in no way, shape or form guaranteed to receive it. It is based on such factors are sales numbers, customer satisfaction and even employee turnover. You should always negotiate from invoice price. Any time a customer comes up with a deal for us to look at from another dealer and it is below invoice, we assume they're FOS.
Old 10-20-2009, 05:45 AM
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Originally Posted by JeffNNJ' post='1036493' date='Oct 20 2009, 09:36 AM
Like with any car company there is always some back end money but the dealership is in no way, shape or form guaranteed to receive it. It is based on such factors are sales numbers, customer satisfaction and even employee turnover. You should always negotiate from invoice price. Any time a customer comes up with a deal for us to look at from another dealer and it is below invoice, we assume they're FOS.
Jeff is correct as a general rule. There are situations, however, where a dealer could charge below invoice but it usually means that they are getting the profit from another aspect of the deal such as:

(1) Buying a trade in at a much lower value than the car is worth.

(2) Marking up the money factor on a lease from the base BMWFS money factor.

(3) Marking up the BNWFS lease aquisition fee.

(4) Selling dealer installed options at an inflated price.

(5) Selling extended warranties/extended maintenance plans/wheel and tire insurance at an inflated price.

(6) Selling a demo car or a car from the prior model year (I'd never buy one of those that wasn't below invoice because those cars have less value).

Also, you can buy a BMW for under invoice if BMW if offering a rebate or trunk money on a model that it is trying to clear out of the showroom. That's exactly how I leased my 2009 550 -- with a $2500 bMW rebate because, in March, BMW was clearing out the 2009 E60s to make room for the 2010s.
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