OK, the 3 months is arbitrary and it varies from dealer to dealer. The point I was making is that enforced-savings aspect of holdback is time sensative. Not that the holdback itslef doesn't go away, but the amount of money pertaining to the holdback does.

Say its 3% of a 30,000 car. That's $900 the mfr tacks onto to the price the dealer pays for the car. If you buy the car before the time the dealer has had to pay that full $900 back to the mfr, you should be able to neg for the balance as its no cost to the dealer, since he will get the same balance back from the mfr. Its like an enforced savings plans for car dealers. Unless holdback is something completely different in the US than Canada?

You pic didn't work. I like how you guys have free access to invoice costs (IIRC its the law in the US?. It is harder to find that info in Canada.

 

Boy, this thread is getting out of control!

I will say that sometimes it's worth flying to Chicago or Houston to get a better deal. A savings of $1400 doesn't seem like a lot but that's real money ... a mortgage payment, 4 car payments, etc...

When I was negotiating with my Acura Dealer for my used CL-S, we had hit an impasse. We were $750 apart and neither of us would move. Finally, he offered a year of oil changes for free ... I said, "A year, are you joking, why don't you make it 4 years!" and he said "OK". It's worth about $500 bucks to me ... I know their cost is probably $200 or so but that's doesn't matter. NEGOTIATE UNTIL IT HURTS!! DON'T EVER SETTLE!!

 

That's not free access...I work for a bank. That's one of our floor-plan vehicles. I'm trying to fix the pic.

Anyhow, in the sense that holdback = part of total dealer profit...then in a very general sense, you are correct. It's not something that really gets "eaten up" by anything in particular though. As their costs(overall) add up...their profit dwindles & cuts into their overall $$$ numbers.

When I bought my 03 6spd, they did a dealer trade from a dealer an hour away. I was promised one price, but was charged a tiny bit more($26,900) because the dealer had used(in the bookkeeping sense) some of the advertising allotment. I still got a hellofa deal, so I didn't complain. MSRP was over $31K & there was a $1,000 rebate. So they made the $1,000 from the rebate back from Acura & any holdback(maybe even partial holdback). Everybody was happy.

 

I figure there's 15,000 people here & it wouldn't hurt to shed some light behind the 'iron curtain'.

Trying to help some folks get the process straight so they don't get burned...& also, so they don't go into a dealer & waste everyone's time thinking they have $10K in profit to wiggle out of.

Consider it pentence for approving deals where the customer was getting jammed by the dealer & I could do nothing about it...

But, I digress...

 

Well I bought the Mazda 3 hatchback. They would not budge at all on the dealer markup but, of course, they kept upping the trade-in value of my car. Go figure. So I figure I got MSRP and about average trade-in value. None of the dealers are budging on the price of these things.

 

You should have waited then, another month or two and no more markup.

 

and for reference listen to chris3240929, he knows EXACTLY what hes talking about. I've sold cars, been there done that.

 

Well...hell with the price crap...HOW IS THE CAR?

Give us a review please...looks like one neat little ride.

 

I am really impressed with the car. I tested the Civic, Corolla, Cavalier and Focus and this was the best of the lot. Believe it or not it seems to handle as well as a stock CL-S and it has many of the features. The NAV system has a similar interface though it seem to be a bit slower. So far no rattles, creaks or other strange noises. It even has more than enough power for all the hills around here. The one I purchased is the hatchback with the Xenons (with a dial leveling feature), 4 speed manumatic, NAV, 6 CD changer (sounds the same as the Bose), tire pressure monitor, brake force system and spoiler package. I also have more leg, head and package room than with the CL. It certainly isn't a hot rod but more than adequate for what I need now. So far so good.

 

I would hope with a smaller wheelbase it would outhandle a CL-S to some degree. Also better weight distro being a hatchback.

 

I have driven plenty of little hatchbacks and small cars where you would think that is the case but it's not. This one actually seems to deliver. I will be doing some thorough testing next week.

 

Keep us posted.

 

That really a hot little car ... have fun with it!!