If a dealer trades a vehicle for another at a another dealership do they lose their holdback?

 

Someone with first hand knowledge will surely come along....that has worked at a dealership.
I've been told (so....third hand) that they do not get the holdback on the vehicle coming in from the other dealership, as it's not transferable.
However, since you asked about them trading vehicles, they should retain the holdback of the one they send to the other dealership.

 

There are no rules on dealer trades (at least their were not when I sold), dealers negotiate their own terms with one another.

Some more common ways I have seen trades done:
1.At Net - Dealer A sells / trades the vehicle to dealer B at the invoice amount minus the holdback. The holdback follows the unit. (there may be small differences due to voluntary marketing group contributions).
2. At Invoice - Dealer A sells / trades the vehicle to dealer B at the invoice amount. Each dealer retains the holdback on their original unit. In the case of a straight sale dealer B gets no benefit from the holdback.

Some less common ways:

1.) Dealer A sells / trades the unit to dealer B at a loss (sometimes used when a unit has been instock for an extended period of time)
2.) Dealer A sells / trades the unit above the invoice price (most frequently happens on unique / high demand vehicles)

 

I'm shopping at dealer B hoping for a trade with dealer A. I might actually go straight to dealer A. 2 1/2 hours away. Dealer B says he is going to lose his holdback and have to drive 2 1/2 hours to pick up the truck.

 

Work the deal online before you go.

 

Perhaps off-topic, but if you have a ton of inside information, being an ex-dealer, then have you ever made a post about the "back room" portion of the industry to help us all out? Things like what the ACTUAL invoice is vs what the dealer shows you and what percentage of MSRP the REAL dealer cost is? Just curious. Thanks!

 

Your dealer doesn't automatically lose it, but the trading dealer may demand all or some of it on trades involving popular vehicles. Or just because.

I've had 3 vehicles my dealer has traded for because I didn't have time to order for various reasons.. They lost the holdback on one.