View Full Version : Auto Dealer Holdback
Silverado
02-15-2002, 08:00 PM
This is a question for the people in the automobile industry or those in the know group when it comes to getting the very best deal from the dealership.
If your dealership has to do a locate from another dealership to get the vehicle you want to buy, is there no holdback from the factory to the dealership that you are purchasing from? I had a salesman tell me this today and I am just not sure what to believe.
Thank you for your help.
Water Dog
02-15-2002, 08:20 PM
Hold back moneys are sent to the original dealer . However if he dealer trades your car or truck for another , guess what ?
Both dealers have the hold back for their original cars .
The net effect ?
Hold back moneys are a non-issue .
Work with a professional sales person , not a scam guy .
Silverado
02-15-2002, 08:47 PM
Very interesting Waterdog, very interesting indeed. I guess my next question would be how do you know if the original dealer actually trades a vehicle off their lot in order to get the vehicle that I want from the other dealership? If they tell me that they are not trading over a vehicle, is that a line of bull? Does a vehicle being sent from Dealer A to Dealer B always mean that there will also be a vehicle sent from Dealer B to Dealer A in exchange?
This business gives me the creeps sometimes!
riverrat
02-15-2002, 08:57 PM
doesnt always mean vehicles were exchanged......your dealer is just doing a service by finding the vehicle you want in most cases....Hoping you will return the next time even though there margin on that deal might not have been the same with this sale.... Just find a dealer who is willing to go the extra mile for you and gives you the value you expect....doesnt always mean the best cash price...
Just my thoughts
Water Dog
02-16-2002, 08:14 AM
Simply said ; dealers will almost always (trade cars) for two reasons:
Hold back money issues and the difficulty and additional cost of sending two cars (with two drivers)to pick up one.
Good Luck
(Don't even get me started on lease rip-offs)
It really depends on the dealership. The dealership that i worked for often located vehicles w/o trading. The reason being is that they wanted as much inventory as possible on their lot. Not only that, but the total profit of the dealership didn't have as much to do w/ the sale price of the vehicle as one might expect. Financing, warranties, service, ect. make up more than fifty percent. So, to lose holdback wasn't a big deal as long as they got the sale.
GR8WTHUNTER
02-16-2002, 10:45 PM
Why do you care if the dealer is getting a hold back or not. You know what you want to pay and it sounds like it would have been a doable deal if the truck was on the lot. I'd tell the dealer that it was a shame they were the only guys selling trucks with in 50 miles and that they needed to rethink what they are telling you