holdback

1. (accounting) Income that is set aside for eventualities such as customer returns, seasonal fluctuations, performance bonuses, unexpected costs, etc.Examples: "The community Opportunity Bonus Fund incorporates a $250 million bonus pool, which would operate in the same manner as the original performance holdback."; "When there is a holdback provision, the percentage placed in reserve by gainsharing plans typically ranges from a low of 10 percent to as much as 70 percent."; "The customer return privilege period expires and the remaining holdback is paid to the transferor."

2. (car sales) The difference between a dealer's cost and the manufacturer's suggested retail price.Examples: "The discount holdback is a part of the overall discount enjoyed by all dealers of Dodge vehicles, and it is inconspicuously noted on each invoice that petitioner receives. The purpose of the discount holdback is to place Dodge dealers in a better competititve position with their rivals by placing an artifically high floor on the invoice cost of new vehicles and making it appear that each vehicle costs the dealer more than it actually does."; "Holdback was instituted in the early 1960s, we understand, as a way to ensure that dealers would have money on hand to pay Uncle Sam at tax time."; "As you will see, most manufacturers have holdbacks. Take the invoice and subtract the holdback to find the starting price of the car."