In auto sales,a ________ is an amount of money,generally in the 2% to 3% range,that the manufacturer gives the dealer for selling an automobile.
A)holdback
B)rebate
C)kickback
D)markup
E)none of the above

Question

Quizplus · Accepted Answer

Holdback is a common practice in the automotive industry, wherein the manufacturer gives a certain percentage of the invoice price of a vehicle to the dealer as a rebate, usually in the range of 2% to 3%. This is generally paid after the vehicle is sold, and it helps to provide some profit margin for the dealer. It is not a rebate, as the dealer does not have to apply for it, and it is not a kickback, which is an illegal payment made to a dealer or salesperson in return for business. Markup is the amount added to the cost price of a product to cover expenses and profit, and is not related to holdback.

In Auto Sales,a ________ Is an Amount of Money,generally in the 2