Dealer holdback = built in dealer profit

The dealer holdback is usually about 2% to 4% percent of the MSRP sticker price of the car. After the car is sold, the manufacturer refunds this money to the dealer - this is extra profit for the dealer. Most people are not aware that this dealer holdback exists. You will not usually be able to talk the dealer into giving up any part of the holdback but knowing it exists is important because this allows you to figure out how much profit the dealer is making and puts you in a better position to negotiate a favorable purchase price.

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