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Actually, dealer holdback is $720, they get $25 for gas allowance, and $200 for loss of interest from subaru for putting the car on the lot. The $200 is what they actually lose the longer the car sits on the lot basically. The second dealer that I went to showed me all these figures, it was on an official looking paper from subaru. Basically even though I paid invoice, the dealership makes ~$950 on my sale, because the car will never even be on the lot one day. With that they can afford to cut the salesman a bit of a comission, even though he sold the car at such a low cost.
 

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I was at Frank Gentile in Racine where they gave me $300 below invoice. The dealer I ended up going with is Harms Motors in Lake Geneva, WI.

I should also tell ya, I am guessing that your chances are better at Frank Gentile. They have a lot more cars, are a bigger dealership, and probably will work with you more. They told me they were only giving me this good of a deal because they wanted to be the #1 subaru dealer in SE Wisconsin. The salesman I worked with was Steve Paulson, he wasn't too tough to get to come down on price. I am pretty sure that they'll get you to very close to invoice price without many problems.

email me if you want to talk more. [email protected]
 
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