Pending new tractor purchase, How to negotiate?

[indianaEPH]

HI:

Im about to upgrade to a Mahindra 5035. THis will be my first new tractor purchase. I have a quote from a dealer. It is basically at list price with a cash discount + the other factory discount.

My question is how much discount do others get? 5%? I have no Idea how much wiggle room the dealers have. Any help would be appreciated.

Thanks very much

 

[yelbike]

|Iwould try 10%. Doesn't hurt.

 

[Army grunt]

Set your price at say 10% off simply tell him you only have that to spend(CASH). shrug your shoulders an walk away. the tractor is always there you aren't, His deal is a standard deal.The big part is letting him know what you want an what you have.Good luck
Army Grunt

 

[MG1867]

Start low you can always add more money to your offer once you make a deal you can't get any back. The best negotiations happen when emotions are not controlling your decision and that is hard to manage with a new toy. You have to be able to walk away from the deal so have a plan "B" Good Luck:thumbsup:

 

[houstonscott]

In automobiles there is almost 22% profit or more. Tractors don't have the overhead of show room and advertising like cars but some manufactures do advertise. Tractor dealers don't sell as many in month as a car dealer would so he has to make that up in profit margin on each one sold. It also means he is always operating on the edge and may have to take something just to pay the bills that month. Shop on last day or two of the month, better even to deal on last days of the quarter. My bet is there's 18% profit in compact tractor and close to 22% in a utility tractor of retail values pushing 40-50K. I would offer a number that was 15% below the retail value and would walk away from any deal not approaching 10-12% below.

HS

 

[yelbike]

In automobiles there is almost 22% profit or more. Tractors don't have the overhead of show room and advertising like cars but some manufactures do advertise. Tractor dealers don't sell as many in month as a car dealer would so he has to make that up in profit margin on each one sold. It also means he is always operating on the edge and may have to take something just to pay the bills that month. Shop on last day or two of the month, better even to deal on last days of the quarter. My bet is there's 18% profit in compact tractor and close to 22% in a utility tractor of retail values pushing 40-50K. I would offer a number that was 15% below the retail value and would walk away from any deal not approaching 10-12% below.

HS

Thanks for your insight. Thats huge. I like a good deal, but I feel even worse when someone else gets a better deal.

 

[murphy1244]

I got about 17% off dealers list plus 3Gs from Kioti.

 

[houstonscott]

After you negotiate a price ask for something to seal the deal. Prime issue would be 50hr service. Ask them to pay for 50hr service. If they throw it in it could save you a few hundred more.

HS

 

[Jamming]

Find two dealers that are relatively close and keep going back and forth, I always tell each dealer what I am doing then the competition starts. Then check one other dealer after you think the price is close. I do this with cars, motorcycles, trucks, and now tractors. It worked for me. I bought 2011 JD 3005 with a 300 loader for 13.2k

2 free hats, pink for the wife. 3 cans of touch up paint.

 

[indianaEPH]

I have no problem supporting my local dealer. I want him around and he needs to make a profit to stay around. I just don't wnat to over pay (slightly uderpay would be nice).

Thanks for all the good suggestions. I'll keep you posted on the results.

Thanks

 

[idaho2]

I used email only to negotiate a final price. Had all the specs in front of me knew what I wanted as extras and went after it. I got what I wanted and more. This way you have a paper trail - both ways. Takes all emotion out of negotiations.

idaho2

 

[DavesTractor]

HI:

Im about to upgrade to a Mahindra 5035. THis will be my first new tractor purchase. I have a quote from a dealer. It is basically at list price with a cash discount + the other factory discount.

My question is how much discount do others get? 5%? I have no Idea how much wiggle room the dealers have. Any help would be appreciated.

Thanks very much

If the dealer is at full list, then you have quite a bit of wiggle room. The thing to remember is that it is not how much you can get off the asking price, instead it is the actual price you pay.

What I mean is illustrated by the following example. We occasionally advertise a loss-leader unit at near actual dealer cost. Not really a loss, but by the time it is delivered with a full tank of fuel, it is very slim. We do that to bring in customers and they generally buy implements or a different tractor and it works. But some yo-yo will come in on the loss-leader and offer $2k less on that model that has $250 profit. I'm not offended of course, but offering $2000 off MSRP list on a new 8560 Cab with a loader is way different than $2000 off a tractor that is already at rock bottom.

You can tell the dealer that you are going to price shop him some and would like his very best deal upfront. And then buy from your local dealer if at all possible, always giving him a chance to price match if needed. He needs your support, and you will need his.

 

[MtnViewRanch]

Dave, will you please give me a call when you are ready to sell that 8560 with a cab and ALL the goodies and only make $250. :cool2: I won't even try to get the price down, everyone has to make a buck or even two.

See you in Tulare? :thumbsup:

 

[TCowner]

I've had some success with negotiating the best deal I could on say the lower horsepower tractor in the line like the Deere 4320. Get the absolute best deal possible and then making an offer to go up the higher power tractor in the series for basically the dealer cost. This can work if the dealer has both tractors in stock or has to order the tractor or find one from another dealer. I was able to do this when I purchased my 4720 a few years back.

It seems as if they are comfortable with a certain profit on the lower hp tractor they won't want to lose a customer and a sale. Some dealers that work on a straight percentage of profit probably won't agree but I've found that if they can make a couple of thousand dollars on a sale it isn't worth a lost sale to try to make a greater profit on the more expensive tractor just to maintain the profit margin policy.

Again, this may not work with all dealers and I suspect one would be limited to just moving up a model or two in the series of tractors. The customer also has to be ready to sign the agreement so that the dealer knows the sale is imminent.

You might be able to do this with an attachment. If the dealer is satisfied with his profit then he/she may be be satisfied with minimal or no profit on the attachment if the tractor deal is certain.

 

[DavesTractor]

Dave, will you please give me a call when you are ready to sell that 8560 with a cab and ALL the goodies and only make $250. :cool2: I won't even try to get the price down, everyone has to make a buck or even two.

See you in Tulare? :thumbsup:

No problem Brian, but I get to pick the quantity. I'm thinking 100 tractors at $250 each in one sale might just work. No free delivery and I won't paint them blue. Tires extra.

I'll be in Tulare, and I look forward to seeing you again....Mr. Mahindra

 

[NYBOB]

I got 15% off my 3720 John Deere when I bought it. Just get other quotes and ask the local guy to match it.

When I bought my NH TC33D (my first new tractor) I actually spec'd out what I wanted and sent out bids to 5 NH dealers. Took the lowest one to my local guy and he matched it.

 

[bindian]

I did not negotiate for my Mahindra. The dealer sells tractor at $300 over cost. If you can not get the price you want...........try to get them to throw in implements or attachments or extra remotes or even a canopy.
hugs, Brandi

 

[DT86]

If you can not get the price you want...........try to get them to throw in implements or attachments or extra remotes or even a canopy.

When I priced my Kubota I did the just that. Once the dealer gave me his best price I asked him to throw in a hay spear. To my surprise it worked. The worst thing he can tell you is no deal.

 

[Turbys_1700]

I bought a new FEL last year...
I did not try to dicker down my local dealer any except the delivery...
I felt that the price was fair and lower than any comparable loader for my tractor...
I saved a little and was satisfied with the purchase, delivery, and service...
I have no problem with my local dealer making a fair profit off of me...
If and when I am in the marker for a newer machine I will give him an honest shot at my business...

 

[HenryFordPower]

I bought a new FEL last year...
I did not try to dicker down my local dealer any except the delivery...
I felt that the price was fair and lower than any comparable loader for my tractor...
I saved a little and was satisfied with the purchase, delivery, and service...
I have no problem with my local dealer making a fair profit off of me...
If and when I am in the marker for a newer machine I will give him an honest shot at my business...

Wise comment. I can appreciate your mindset.