Holdback
Definition for canada automotive professionals.
Holdback is a percentage of the MSRP or invoice price that the manufacturer refunds to the dealership after a vehicle is sold. It typically ranges from 2–3% of MSRP and represents a hidden profit cushion that exists even when a dealership appears to sell a vehicle at or near invoice price.
Canada Context
In the canada dealer market, holdback operates within the context of Provincial dealer licensing (OMVIC, AMVIC, SAAQ, VSA) and Competition Act — transparent pricing. Dealerships running PBS Systems, Quorum DMS, CDK Canada 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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