Originally Posted by elToro
Can someone please educate me on how this holdback from invoice works?
I'm sure someone understands better than me, but how I understand it is that there is (in decreasing order) Sticker, Invoice, and Dealer price. What you want to do is pay around dealer price, which is well below Invoice. The dealer wants you to think that invoice and dealer price are the same. If you point out to the salesman that dealer price is less than invoice, they will tell you they need more than dealer price so they can pay the salesmen and keep the lights on. What they don't say is that they get incentives and "hold back" from the factory which is enough to pay the salesmen and keep the lights on.
To the OP, walk in to the dealer knowing exactly what you want and exactly what the invoice and dealer price are. Make the best deal you can, but make sure it is under invoice and around dealer price.