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Holdback

Definition for new zealand 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.

New Zealand Context

In the new zealand dealer market, holdback operates within the context of Consumer Guarantees Act (CGA) and Fair Trading Act. Dealerships running Pentana, Titan DMS, Autobase encounter holdback in their daily workflow. DealerInt captures the decision layer around holdback that your DMS wasn't designed to track.

Related

US Definition · NZ Glossary

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