What does education has to do with anything in here?!? I have multiple bachelor's degree and a master degree in high tech opto-electronic field, and work for a top telecom R&D lab, and this is the first time I heard of "holdback". This is not a common knowledge you get on a street, but rather through reading forums like in here. Sounds to me like another price adjustment factor. How does it helps you in price negotiation? In most of the cases (with a few exceptions) you will not be able to get a price better than invoice. Often, $500 above the invoice is a VERY good deal, right? So when you go to dealership and faced with a price negotiation, you have to do your homework to know the invoice price and do the research of what others paid for the car. Also, knowing invoice price of the additional options (NAV and other packages) is very important cause it can all add up.

BTW, majority of Lexus owners are much older and have very deep pockets. They will not spend time calling every dealer from East to West coast to find the best pricing True, they might be involved with finance and know about "holdback" as a common thing. I wonder how many blank signed checks Lexus received prior to LS460 release?

 

regarding holdback, i dont consider it when working a deal for a customer. i use invoice and go from there. the holdback is the dealers money, and i dont get paid off of it.

 

A very good link Alan posted in ES350 forum about holdback: http://www.safecarguide.com/gui/neg/holdback.htm - very interesting reading to understand how this works.

 

thats an excellent explanation of holdback, thanks for the link!