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Discussion Starter #1
Does anyone know how much the dealer holdback is for the RAV4s. I have read somewhere (forgot where) that it's only $65 and Edmunds said it's typically 2%-3% of invoice.
 
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Discussion Starter #4
schwartzy1 said:
it is rougly $500-550 on the V6's
The holdback on my RAV-V6 was $517. I remember it clearly...

My "dealer" (I use that term judiciously) kept arguing that I was supposed to pay this $517 to him. I asked whether this $517 was paid back to him by Toyota. To his credit, he truthfully admitted that it was. Yet he kept saying that this was simply to cover his overhead - as if a buyer should care which dollar of revenue he gets should go for what - and that I still needed to pay this anyhow so he could make a fair profit.

I just kept asking him why he felt it was appropriate for both Toyota AND me - the customer - to pay him the same $517, twice. He came up with a marvelous range of incoherent replies. Unfortunately for him, none were compelling (though they were certainly amusing!)

Finally, in exasperation, he gave up... and the RAV4 cost $517 less than it would've otherwise. Yeeesh.
 

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Same here... When I mentioned to my salesman that I knew the holdback was $500-something, he confirmed that yes, it was, and I believe it was $517 as well.

Edit: OK, just verified by checking my ConsumerReports new car price service report. The holdback scales up by model -- I only have the 4x4 numbers because the 4x2 is a separate report. :?

Base 4x4 ( $434)
Sport 4x4 ( $466)
Base 4x4 V6 ( $475)
Limited 4x4 ( $479)
Sport 4x4 V6 ( $504)
Limited 4x4 V6 ( $517)
 
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Discussion Starter #6
One of the dealers that I have been talking to went into a whole thing about holdouts not bieng included in the margin (profit) calc for the salesrep (must impact their commission). The best price I have been able to negotiate on a V6 Limited is about $600 over their published invoice. So $600 plus $500 hold back = about $1100 profit for the dealership. That's about $1500 under MSRP.
 
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sloopG said:
One of the dealers that I have been talking to went into a whole thing about holdouts not bieng included in the margin (profit) calc for the salesrep (must impact their commission)...
Yessiree, I was told the same thing about the hold back being deducted before they calculate the sales commission. I replied that since Toyota was paying his dealer directly for the holdback, he probably didn't deserve to earn a commission on this amount - nor did I have to reimburse his dealer for a non-expense. If all else fails, ask your dealer what his personal COMMISSION is on the holdback amount - some small fraction of the holdback $$. Then offer to give him cash in hand for that specific amount - so as a salesman he should be indifferent ;-)

But the larger point is that since Toyota is paying the dealership for the holdback, there's no good reason why the dealership should be entitled to ALSO collect it from you, too.

Paying the holdback is like your using a coupon at the grocery store, but then having to reimburse the grocer for the amount of the coupon - 'though the product manufacturer reimburses them for the coupon too. :roll:
 
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