(off topic)Gary: Document that experience with the two new car
dealers. If possible, bring along a witness to the "negotiations",
or get the dealers' open collusion on tape. There may be a "re-
straint of trade" matter here, such as you have reported it.
In determining dealer cost for the vehicle, have you factored in
the so-called "hold back", essentially a percentage of the list
price that the manufacturer pays to the dealer when the vehicle
is sold? For example, in the case of Chevrolet vehicles, the hold
back amounts to 2.5% of the list price which General Motors
will pay to the dealer, upon the sale of the vehicle, irrespec-
tive of the actual selling price.
Hold backs are a dirty little secret of the new motor vehicle
sales business. The dealer may even vehemently deny such an
arrangement. Most of the consumer guides listing dealer invoice
prices for new vehicles and vehicle options are often quite
accurate. However, hold backs are rarely, if ever, mentioned.
Generally, mention of the "hold back" by the consumer during the
negotiation with the new vehicle dealer will unnerve and disarm
him. At that point, with the dealer on the defensive, the savvy
consumer can often contract the best deal, i.e., a deal wrought
from the bottom price up, not the from the top price down.
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