Holdback
Definition for europe 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.
Europe Context
In the europe dealer market, holdback operates within the context of EU Consumer Rights Directive and GDPR. Dealerships running Keyloop, incadea, Autoline 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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