On the CarJoJo website, there is a dealer cost section where they show you the true dealer cost. Can anyone explain what “hidden incentives” and “holdback allowance” mean? Are these values something I should be able to negotiate off the price prior to applying incentives?
Those are kind of rebates that manufacturer gives to dealer. Usually true cost is invoice minus holdback minus incentives. Delaer though does not have to offer all to you. Its at their discretion. However, you always get your personal rebates, like military, loyalty, etc.
Just remember that since everything became easily searchable on the internet, the “invoice” price has somehow magically gone from more than 20% off msrp to less than 1-2% in some cases. It’s no coincidence, pretty much every “invoice” number or dealer cost number is fake.
Some dealers on high volume cars simply will not go below invoice price because they know someone else will come in that week and think they are getting an amazing deal for invoice price. How many people do you hear gloating on forums about how they got an incredible deal because they got invoice pricing and the dealer threw in some floor mats. It’s a cheap and easy way to make customers feel great, by making them feel like the dealer made no money on them.
1 Like