Backdoor Money

Backdoor money is money that a manufacturer offers to a car dealership to sell certain models. It is because of backdoor money that certain cars are featured at certain times. This type of factor-to-dealer incentive is often time sensitive. Also, backdoor money is substantial to the dealerships. The factory or manufacturer needs to move certain models of cars, and as such, offers the dealer a substantial amount to push that car.

Consumers can have a hard time finding out which cars have these factory-to-dealer incentives. While they are not harmful to the consumer, it is helpful to know that a certain car is being pushed for financial gain to the dealer, not because it is the best car to meet your needs. Don't be afraid to ask you car dealer if there are factory incentives on the car. It might not change your purchase decision, but it can help you to make a totally informed choice.

More Glossary Terms Explained here

Suggest an Article

Haven´t found the article you are looking for, please suggest your article. We value all your suggestions and comments.