Car Leasing Glossary - Dealer holdback

Dealer holdback (car leasing term)

An allowance, usually between 2 percent and 3 percent of MSRP (define: mrsp), that manufacturers provide to dealers. A holdback allowance may allow the dealer to pay the manufacturer less than the invoice price. A buyer could obtain a car below invoice price and the dealer would still make a profit.

Car Leasing Dealer Incentives