Z06Biker wrote:Jacksnow, is "inventory" the same as what's known as "bottom line?" I've also been told from friends who used to be internet sales managers for Bimmer and Lexus that even after you hit bottom line, dealers still have "hold back," which I assumed was a profit they *baked in* before setting bottom line?
All that said, most people aren't even able to get dealers to get down to bottom line.
There are all sorts of games dealers play. One is that they get various incentives from the manufacturer. "Hold back" is just one of them. (Basically, hold back works like this: The dealer pays for the car when they get it, paying the invoice price. Some time later, usually quarterly, the manufacture gives the dealer a rebate, of 1-3% of the invoice price. ) There are other allowances, including volume allowances (bigger dealers pay less...), advertising allowances, floor model allowances, inventory financing allowances, and more.
It's a scummy business, and its basic model is "don't let anyone know anything", which is how you get them to pay more.
If the dealer won't let you pay for the car, take it up with AMEX. The merchant agreement I used to have didn't let me say "we won't take cards over X"; I suspect that's true for the dealerships as well.