Holdback is money paid to the dealer by the manufacturer when a car is sold. Many domestic manufacturers use 3% of the sticker price as holdback.

Thanks to holdback, a dealer can make a profit even is he or she sells a car at cost. For example, if you buy a vehicle with a $20,000 sticker price, no matter what you actually pay, the dealer may still receive 3% or $600 in holdback. This is true even if you pay dealer invoice.

Holdback information for all major makes and models is available at your credit union, through Auto Solution, and through internet sites such as www.edmunds.com.