Holdback
Definition for australia automotive professionals.
Holdback is an amount paid by a vehicle manufacturer to a dealership after a vehicle is sold. Typically calculated as 1–3% of MSRP (or base invoice), holdback is paid quarterly and represents a hidden profit cushion that exists even when a dealership appears to sell a vehicle at or near invoice. Holdback is separate from dealer incentives, factory-to-dealer cash, and customer rebates. Understanding holdback is important for calculating true vehicle cost and evaluating front-end gross on specific deals.
Australia Context
In the australia dealer market, holdback operates within the context of Australian Consumer Law (ACL) and National Consumer Credit Protection Act (NCCP). Dealerships running Pentana, Titan DMS, Auto IT encounter holdback in their daily workflow. DealerInt captures the decision layer around holdback that your DMS wasn't designed to track.
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