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2011 Chevy Equinox Dealer Holdback

jfdsccmjfdsccm Posts: 8
I have the Consumer reports New ands Used car price service from a few months ago. It lists the Dealer Holdback of around $700 depending on the trim. Does anyone know if this is still exists?
Thanks in advance

Comments

  • steverstever YooperlandPosts: 40,209
    edited May 2011
    Dealer holdback on Chevy vehicles is 3% of the Total MSRP. I don't think it's changed for years and I've heard no rumors of that changing.

    I hope you didn't pay money for this info; it's all over the web (and especially here) for free.

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  • benrey23benrey23 Posts: 42
    Forget about holdback. Is it not enough that we salesman barely make more than 100 dollar mini on new cars. Hold back is there for a purpose. Let me put it to you this way:

    2011 Equinox may have 700-1400 markup depending on model. Just on invoice alone I will make anywhere from 175 to 350 commission. That is if I sell for MSRP on a vehicle I cant even keep stocked it sells so well. Now I sell maybe 5% of my new cars at MSRP and most are the ones that have rebates. The Equinox does not have rebates. Now if we are talking about HB, every dealer has what they call a PACK. It is an amount attached to each new and used vehicle usually no less than 500 on new and higher on used. PACK pays for advertising, inventory tax and interest ect. Large amount of it to advertising since it is a very competitive market. If they didnt have pack you would see dealers not selling for anywhere close to invoice. My dealers new car pack is 650. So if I sell a car with 700 HB that is only 50 bucks extra gross that I get 25% of. My point is that no dealer will give up holdback unless it is on a vehicle they have had over 1 year and even then it is hard to get from them. On an Equinox I guarantee u will not find a dealer willing to give it up since that would mean they would lose money when pack is attached.
  • kyfdxkyfdx Posts: 28,056
    Why would a prospective buyer care about your commission or the pack at your dealer?

    The pack is the amount your dealer takes out of the gross profit, so he doesn't have to pay you commission on it.. It isn't an expense to the customer... it's just a calculation to pay you less money..

    Really... just so you know... no customer cares how much, how little, or even if you get paid.. They care about the lowest price.

    Convince them that you have the lowest price (even if you don't), and you'll sell more cars.

    regards,
    kyfdx

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    Prices Paid, Lease Questions, SUVs

  • Oh I disagree when you say "no customers care about how much I do or dont get paid". When a customer worries the dealer is making to much money with or without holdback they are worried about my pay as well.

    I have no problem selling cars and many times do get them to pay more not with tricks but good repore building and customer service. Many customers dont mind paying a little more for good treatment and honesty.

    It seems to me there are many more customers who are going to Walmart the auto industry. That means more supplied parts being assembled outside the US. Walmart has good intentions but the consequences of jobs being lost are real. It already is happening inn the US auto industry. Dont get me wrong, the customer deserves the best deal based on demand. New cars are already discounted with rebates, and those that are not are selling well. The post started with asking about HB. The dealer does not get the HB right away. It shouldnt even be considered in the negotiations. Start doing that they will just raise the price of invoice while keeping MSRP the same.
  • steverstever YooperlandPosts: 40,209
    edited September 2011
    We're getting a bit off topic (check out Smart Shopper), but sometimes you don't need a salesperson.

    If I know what I want, I can go to Home Depot, grab the item and use the self-check. I research and buy my sneakers online with "no human intervention". It's common that consumers are focusing so much on two or three models that they know way more about those cars from their research than the salesperson on the floor.

    If I need help, the folks on the floor are usually good about answering my questions. Even so, I'm not willing to pay more for that, and I expect honesty and good treatment in any event.

    If the dealers didn't control auto franchise laws, some of us would be more than willing to factory order a car (after renting one from Enterprise) and have it delivered to our homes by UPS. There's a reason why car salespeople have lousy reputations (think keys on the roof, mop & glow, high pressure, etc.).

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  • I have yet to find a customer that truely knows more about the car than I do. We are talking about huge purchase in the thousands. That cant compare buying a car to buying something at Best Buy. The manufacturers dont want to do self ordering and delivering any more than the dealers. With competition so high you need salesman women to assist in why you should buy such and such and not something else. You think the cost will be better if there were no dealers. Give me a break. The shipping already is high and that is with multiple cars at a time. The wait time would be huge doing it your way. Now I admit there is a trust issue I have to overcome with every customer and I do not lie to them. I do not rip them off even if they pay sticker, that just means I did my job and showed the value of the car. I would also challenge you on the rental car idea. I work at a dealer that bought out another last November. When they got there inventory was terrible, it is huge now and we are selling many new and used. People like a wide selection, and they like to tough , feel and drive it. I know there are bad dealers and salesman have a bad rep. I also know the facts, true cost of supplying new cars and how much we make on them. It is not homerun money unless you are selling 15-25 a month.
  • steverstever YooperlandPosts: 40,209
    Heh, why go to Best Buy B&M when you can shop NewEgg? Often cheaper, user reviews, save gas and no one is going to grab you as you pay to try to upsell you an extended warranty. Or window etching.

    About the easiest dealer I shopped in recent years was a no commission shop. That did seem to help.

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