“Holdback” is a bonus of 2-3 % of the MSRP (Manufacturer Suggested Retail Price) that factories pay dealerships every time a car is bought straight from the factory.

Dealers know that few clients are aware of this so they add an extra fee to your receipt, using the expression “Factory holdback”. If you ask, they will tell you this is a fee charged by the factory. By pulling this scam, they will get paid twice.

How to avoid: you don’t have to buy the car that day. Go home with all the notes from the salesman and check all the terms and new words on the Internet.