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What does "holdback" mean?

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  • Videojug
  • Videojug
  • 18:10
  • Yes
  • 360p
  • 640x360
  • Flash
  • h.264
  • 900kbps

What does "holdback" mean?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "total" mean on the sticker price?; What is a "test drive"?; What is the difference between unleaded, regular, super and diesel? and more...

Holdback refers to a little pot of money which the car dealer can be sure he will receive once the vehicle is sold. This can come from co-op advertising funding, special incentives or special rebates that the manufacturer will kick in once the vehicle goes off with the consumer. The point of a holdback is to ensure some degree of profitability for the dealer, to actually go through the process of hiring people to sell the vehicle, for keeping it clean on the showroom floor, etc. Holdbacks are just an incentive to make sure that the vehicle is presented to the consumer in the very best way.

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