Glossary

Dealer Holdback

A percentage of MSRP the manufacturer refunds to the dealer after the sale.

Holdback is typically 1-3% of MSRP. Dealers won't usually negotiate into it, but knowing it exists explains why dealers can sell at or below invoice and still profit.

Related terms

Invoice Price

The amount a dealer pays the manufacturer for a vehicle.

Dealer Markup (ADM)

A charge dealers add above MSRP, common during shortages or on high-demand vehicles.

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