Originally Posted by Moviela

I have no problem letting you know what they are. Most involve some type of sales performance. Meeting goals for the dealer, or for the region can result in cash back to the dealer. Audi claims they don't pay hold-back, but VW chips in 2% of MSRP if you hit corporate sales goals. Sales contests reward winners with trips or luxury goods. These often can be sold for cash. Volume buying, where a large number of units can be bought with one unit free, or on lesser quantities get a free one year lease.

Spiffs for selling certain packages, usually offered when the factory is fat with something like 19 inch wheels.

Increases in the factory percentage of co-op advertising when sales goals are met, or good media buys increase traffic.

The destination charge is actually a charge at destination. Delivery of the car to the dealer is included in the invoice for the price of the car. Dealers keep this loot because people have been conditioned to pay it. It also allows them to exclude a portion of the profit on a sale from being used in the calculation of the salesman's pay.

There are punch outs, alternate transportation, industrial bonds, training, and subsidized financing.

All of these combine to lower the per unit costs of the dealer. States and cities also can contribute with reduced taxes, rent assistance, redevelopment money, public area landscaping, and public property signage.

Get either of Herb Cohen's books on negotiating, you will learn how to protect your budget.