Holdback
Definition for united kingdom 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.
United Kingdom Context
In the united kingdom dealer market, holdback operates within the context of FCA motor finance regulation and Consumer Rights Act 2015. Dealerships running Keyloop, Pinewood, Dragon2000 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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