Holdback
Definition for united kingdom 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.
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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