Price negotiated from MSRP

[dannydyn]

Hi all, very informative topic!

Quick couple of questions, I was hoping someone could answer for me:

1. What does dealer hold-back mean exactly?
2. Does anyone know of high-volume dealers that fall within the approximate radius below?

Thank you in advance

 

[rmonte4]

Hi all, very informative topic!

Quick couple of questions, I was hoping someone could answer for me:

1. What does dealer hold-back mean exactly?
2. Does anyone know of high-volume dealers that fall within the approximate radius below?

Thank you in advance

Craig @ Koons in Washington DC area, spread that radius a bit more. 7% under invoice price, no hassle or negotiation.

 

[c_l_phillips72]

Hi all, very informative topic!

Quick couple of questions, I was hoping someone could answer for me:

1. What does dealer hold-back mean exactly?
2. Does anyone know of high-volume dealers around the NY tri-state area?

Thank you in advance

I can help with #1.

I think it's quarterly the Manufacturers give the "hold back" amount to the dealerships. The "hold back" amount is calculated differently depending on the manufacturer.

Just as an example, it might be something like:
MSRP (Sticker) - $50,000 (including destination charges)
Destination Charges - $1,695
Invoice - $45,000
Markup from Invoice ($50,000 MSRP - $1,695 Destination Changes = $48,305 - $45,000 Invoice = $3,305 markup)
Holdback - $45,000 Invoice * 3% = $1,350

At the end of the quarter, the dealer that the vehicle was originally delivered to will get $1,350 from the manufacturer for selling the vehicle. If the vehicle was acquired by dealer trade, the acquiring dealer does not get the hold back as it would still go to the dealer where the vehicle was originally delivered to.

When I used to sell cars 20+ years ago, the dealership would dip into the holdback and give it as a discount to sell the old model year vehicles. Of course, they couldn't dip into the holdback it we got it from a different dealership on a trade.

Some manufacturers include the destination charges when calculating the hold back amount, and some use different percentages (2%, 2.5%, etc). GM, from what I remember, uses 3% and I don't know if that includes Destination charges or not.

 

[dannydyn]

Craig @ Koons in Washington DC area, spread that radius a bit more. 7% under invoice price, no hassle or negotiation.

Thank you

 

[dannydyn]

I can help with #1.

I think it's quarterly the Manufacturers give the "hold back" amount to the dealerships. The "hold back" amount is calculated differently depending on the manufacturer.

Just as an example, it might be something like:
MSRP (Sticker) - $50,000 (including destination charges)
Destination Charges - $1,695
Invoice - $45,000
Markup from Invoice ($50,000 MSRP - $1,695 Destination Changes = $48,305 - $45,000 Invoice = $3,305 markup)
Holdback - $45,000 Invoice * 3% = $1,350

At the end of the quarter, the dealer that the vehicle was originally delivered to will get $1,350 from the manufacturer for selling the vehicle. If the vehicle was acquired by dealer trade, the acquiring dealer does not get the hold back as it would still go to the dealer where the vehicle was originally delivered to.

When I used to sell cars 20+ years ago, the dealership would dip into the holdback and give it as a discount to sell the old model year vehicles. Of course, they couldn't dip into the holdback it we got it from a different dealership on a trade.

Some manufacturers include the destination charges when calculating the hold back amount, and some use different percentages (2%, 2.5%, etc). GM, from what I remember, uses 3% and I don't know if that includes Destination charges or not.

Thank you very much

 

[Cannonball]

I mean I have the build sheet from the day i ordered....

and another one from today, note the highlighted sections...

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Prices do and have gone up slightly throughout the year and have caused the same headaches with others. It does appear the dealer ordered the truck on the 3rd according to the paperwork so you're limited in your supporting argument. You must have a build sheet with pricing that you signed though. The truck price really should be based on that regardless of factory price increases afterwards.

Heads up, off-road group is going to screw with your order. You may have to reorder anyways then you're def screwed on prices.

 

[Creep0321]

Prices do and have gone up slightly throughout the year and have caused the same headaches with others. It does appear the dealer ordered the truck on the 3rd according to the paperwork so you're limited in your supporting argument. You must have a build sheet with pricing that you signed though. The truck price really should be based on that regardless of factory price increases afterwards.

Heads up, off-road group is going to screw with your order. You may have to reorder anyways then you're def screwed on prices.

I’m in Germany, so short of a receipt for 500$ deposit I haven’t signed anything. And how is the ORP going to screw with my order?


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[glennf14]

I can help with #1.

I think it's quarterly the Manufacturers give the "hold back" amount to the dealerships. The "hold back" amount is calculated differently depending on the manufacturer.

Just as an example, it might be something like:
MSRP (Sticker) - $50,000 (including destination charges)
Destination Charges - $1,695
Invoice - $45,000
Markup from Invoice ($50,000 MSRP - $1,695 Destination Changes = $48,305 - $45,000 Invoice = $3,305 markup)
Holdback - $45,000 Invoice * 3% = $1,350

At the end of the quarter, the dealer that the vehicle was originally delivered to will get $1,350 from the manufacturer for selling the vehicle. If the vehicle was acquired by dealer trade, the acquiring dealer does not get the hold back as it would still go to the dealer where the vehicle was originally delivered to.

When I used to sell cars 20+ years ago, the dealership would dip into the holdback and give it as a discount to sell the old model year vehicles. Of course, they couldn't dip into the holdback it we got it from a different dealership on a trade.

Some manufacturers include the destination charges when calculating the hold back amount, and some use different percentages (2%, 2.5%, etc). GM, from what I remember, uses 3% and I don't know if that includes Destination charges or not.

@dannydyn - just to clarify, RAM doesn't use invoice to calculate the holdback. You can calculate the holdback yourself. Just take the MSRP and subtract the $1695 destination fee, and then multiply that by .03, and you'll know exactly what the holdback is.
Example:
MSRP = 50,000
MSRP minus the $1,695 destination fee = 48,305
holdback = 48,305 * .03 = $1449.15

When negotiating the price of the truck, the rule of thumb is to at least get FWP - HB = goal price, plus whatever rebates you qualify for at the end.
FWP = invoice
HB = holdback
EP = employee price
FFP = friends family price

 

[Electrical]

....

And how is the ORP going to screw with my order?

ORP is currently on restriction on some models (maybe all models?).

 

[Jro]

ORP is currently on restriction on some models (maybe all models?).

According to Craig at Koons, ORP is on restriction for Laramie, Longhorn and Limited packages. Don't know about the rest.

 

[Creep0321]

ORP is currently on restriction on some models (maybe all models?).

There were folks trying to order limited that weren’t able to select during order (dealer wasn’t). Mine had no problem and has VIN assigned already.


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[Longhorn]

According to Craig at Koons, ORP is on restriction for Laramie, Longhorn and Limited packages. Don't know about the rest.

Along with 2 tone paint on longhorns

 

[Cannonball]

I’m in Germany, so short of a receipt for 500$ deposit I haven’t signed anything. And how is the ORP going to screw with my order?


Sent from my iPhone using Tapatalk

I mentioned it mainly because I noticed your sig said you are "back" D status which I understand to mean there is an issue with gathering the parts for the build. And in partial because of what everyone else just said.

Don't get me wrong, I do hope your build makes it through without issue but being advised ahead of time is much better than being surprised down the road.

 

[Jro]

ORP apparently back as of today. It is pretty bizarre for an international company to just shut down ordering for a few days here and there when availability apparently fluctuates this much. Still no 2 tone on Longhorns - guess their brown paint supply running low.

 

[Electrical]

ORP apparently back as of today. It is pretty bizarre for an international company to just shut down ordering for a few days here and there when availability apparently fluctuates this much. Still no 2 tone on Longhorns - guess their brown paint supply running low.

Yeah, odd.

My salesman is supposed to be tracking this for me. Let's see how long it takes him to call me.

 

[Creep0321]

I mentioned it mainly because I noticed your sig said you are "back" D status which I understand to mean there is an issue with gathering the parts for the build. And in partial because of what everyone else just said.

Don't get me wrong, I do hope your build makes it through without issue but being advised ahead of time is much better than being surprised down the road.

Yea who knows, all I know is they have from now till April 1 to deliver my truck to the dealer in FL, or I'm back to square one and buying one off the lot... hoping with that time frame there is no issues.

 

[Cannonball]

Yea who knows, all I know is they have from now till April 1 to deliver my truck to the dealer in FL, or I'm back to square one and buying one off the lot... hoping with that time frame there is no issues.

Either way kudos on 7% off invoice through a central FL dealer is great. They wouldn't touch that low back in October so I had to go to VA to pickup my ordered truck. Had they, I would have only put 40 miles taking her home vs 850!

 

[Longhorn]

I’m in Germany, so short of a receipt for 500$ deposit I haven’t signed anything. And how is the ORP going to screw with my order?


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Well hello from France.. I haven’t put anything down.. did get a quote from Koons that wasn’t bad. I think I’m gonna wait for the 2500’s.... besides not currently in the U.S so even if I wanted to get it I couldn’t.

 

[Cannonball]

Well hello from France.. I haven’t put anything down.. did get a quote from Koons that wasn’t bad. I think I’m gonna wait for the 2500’s....

Hola from Spain

 

[MFALRAM]

2019 Ram Big Horn Crew Cab blackout package
Level 2
Msrp $52250
$4500 Rebate
Trade in value of car was $20000 received
$24500
$1250 dealer rebate
$42000 negotiated
After taxes , dealers fee and loan $48500
Also bought truck end of month