Buying Advice Playing dealers off each other?

[plesciad]

Hi everyone, I'm sure this question has been addressed on TBN many times, but I couldn't find the answer. I'm looking at 4052M's (loader, HST) and called the two nearest dealers (different chains). The dealer about 80 miles away, in a major agricultural region, is quoting me at about $3k cheaper (including delivering the tractor) than the more local guys. Their prices undoubtedly are lower because of the economics of the region.

80 miles away: $32k (with tax and delivery)
10 miles: $35,300 (with tax)

I am new to this. What's the game here? Can I let our local dealer know to see if he'll drop the price?

The far away dealer essentially said they need to say our farm is in their county in order to pull this off but they want our business. :confused3:

 

[Cat_Driver]

Hi everyone, I'm sure this question has been addressed on TBN many times, but I couldn't find the answer. I'm looking at 4052M's (loader, HST) and called the two nearest dealers (different chains). The dealer about 80 miles away, in a major agricultural region, is quoting me at about $3k cheaper (including delivering the tractor) than the more local guys. Their prices undoubtedly are lower because of the economics of the region.

80 miles away: $32k (with tax and delivery)
10 miles: $35,300 (with tax)

I am new to this. What's the game here? Can I let our local dealer know to see if he'll drop the price?

The far away dealer essentially said they need to say our farm is in their county in order to pull this off but they want our business. :confused3:

I can't tell you how many times I tried this and failed. I've gone to dealers with written contracts showing a lesser price and some have been flat our rude. One car dealer I went to had the same vehicle a dealer was advertising for less, but an hours drive away. I said I would like to buy local can you meet or beat the price - he said nope go buy it from them.

My last Kubota I bought was 8K cheaper from South Carolina, ( I live in Ca.) I asked the dealer 10 miles away to meet or beat- he said go buy it from them. I saved 8K on the tractor plus no sales tax, and shipping was only 1K, so I saved a bundle, and the local guy could not have cared less.

I've come to the conclusion that when you branch a dealer with other dealer prices they get "ticked" off at you for doing that and simply refuse to see to you on principle.

One trick I did do on a new vehicle was to go to the local dealer and look at the vehicle I wanted and when the salesperson asked if he could help I said, "no thank you, I'm headed to another dealer out of town to purchase this same vehicle but I wanted to take a look at it in person before I purchase it"

The poor guy looked stunned that I would say that. He asked why I wasn't buying locally and I said "I've heard all the local dealers are too expensive" ...( this is where I started sucking him in for the kill) He said can I have a shot a beating the out of town dealer? I said, gee I don't know I already told him I would come up and buy it from him today. The rest is history. I got the vehicle $1,000 less than the out of town dealer.

So rather than throw it in their face - make them think they are "stealing a sale" from another dealer. I'm sure the sales guy thinks he got one over on me, and the entire time I was playing him.

 

[jeff9366]

$3,000 is a big difference.

First tractor purchase is always difficult, because the consumer is often uncertain.

I prefer to negotiate price by e-mail. Then both parties have a record of the exact potential order. Create the order in a spreadsheet and e-mail the same spreadsheet to each dealer. Include potential purchase date. Inquire about factory rebates in effect, expiring or coming up.

If buying off the lot, check how long each tractor has been sitting in the yard. I store my tractor in my garage. I would not buy a tractor that has been sitting in the weather for three months or longer.

When I purchased my L3560 I was at the dealer's when the truck pulled in from Kubota. The local dealer had it assembled, adjusted and delivered the next day.

 

[two_bit_score]

Hi everyone, I'm sure this question has been addressed on TBN many times, but I couldn't find the answer. I'm looking at 4052M's (loader, HST) and called the two nearest dealers (different chains). The dealer about 80 miles away, in a major agricultural region, is quoting me at about $3k cheaper (including delivering the tractor) than the more local guys. Their prices undoubtedly are lower because of the economics of the region.

80 miles away: $32k (with tax and delivery)
10 miles: $35,300 (with tax)

I am new to this. What's the game here? Can I let our local dealer know to see if he'll drop the price?

The far away dealer essentially said they need to say our farm is in their county in order to pull this off but they want our business. :confused3:

I've got to watch this.


.

 

[hturner12]

When I bought mine I went to AL from GA 4 hour drive each way saved about a 1000 plus no tax. I have a dealer on 1 hour away. His website is static basicly come see us type. I called him before I bought and ask a simple question " Will you do warranty work if I buy from another dealer?" His answer NOPE . Since he will not no warranty for me then he needs none of my money for anything else. There are 2 other dealer about 2 -21\2 hours away complete opposite. I am going to call LS and complain about dealer #1 nope, he and his policy we take care of themselves. His local only customers will for whatever reason dry up.

 

[Looking4new]

When I bought my Kioti CK27HST w/loader and front mount snow blower and cab, (July 2012) I called in at a dealer 2/3 the way to my work location. (about 3 hours south of me)
He gave me a quote of $35,000.oo and told me at that time that he wouldn't trade for my Farmall C, nor was there any 'wiggle room'. I thanked him and left for home. While at home I phoned another dealer about 2 hours north of me and he quoted over the phone $42,000.oo for the same tractor but also told me that he could 'upgrade me' for that price.
So on to the dealer I bought from (he is about 2.5 hours South of me and has been established for the past 30 or so years) , he quoted $32,000.oo delivered and no trade. Until he handed me the quote, he had no knowledge of the other two quotes. I think you all know which dealer I bought from.
Dave Beards' Equipment in Jarrett, Ontario, Canada has been nothing but fair with me and I wouldn't hesitate to deal with him again.
And this is a shameless plug.

 

[Rustyiron]

Try Cat_drivers little approach, I like it.
Then money talks, & BS walks. I'd go for the 80 mile drive!

 

[sea2summit]

Yep, drove over 500 miles and counting hotel and everything I saved about 10K on my MX. Local guys also did not care and didn't even want to try to make a better deal then their original price, very odd to me.

 

[hturner12]

Tractors dealers are not like car dealers more like boat dealers. For the most part they are still family type operations, there a few conglomerates. There buyer pool is small more needs based vs want based. I need a new tractor\ implement vs I want a new car. Their selling territory is greater. It maybe a couple hundred miles before there is another dealer vs 50 miles for a car dealer. in my case there are 5 Jeep dealership within an hour. For tractors 2 orange 3 red 2 green 1 NH 1 LS and they are 2 hours apart from each other.

They know when you buy you will have to come back for parts and service.

Another thing to consider is the community is it a heavy at community or a suburban community where most sales are for small land owners.

 

[RedNeckRacin]

I ended up buying m 5083E for 8k less at my local dealer. I was curious about the next closest deere dealer, and he flat out said he couldn't match it and didn't know how they were making any money off of the sale. The 2nd dealer still asked if I would buy from them for 8k more! I laughed because I couldn't believe he was serious. I haven't been to the dealer in a long time since I get all my parts shipped directly to me or the big stuff to the local guy and I just go pick them up. I even get construction parts delivered to the local ag dealer no problem. Just give them the part number and it comes in.

 

[sklunk]

The far away dealer essentially said they need to say our farm is in their county in order to pull this off but they want our business. :confused3:

That part is a flat-out lie. While Deere does likes its dealers to cover certain regions and not overlap each other you are free to buy from whatever dealer you want. There are quite a few farms in my area that buy Deere and bypass 3 close dealerships to go to a farther one since the prices and service are better.

The bigger question is when it needs service are you going to take it to the farther dealer or the closer one? If you are going to use the closer one for service you may not want to make them mad (they may remember that you didn't buy from them).

Either way good luck.

 

[audsp98]

Hi everyone, I'm sure this question has been addressed on TBN many times, but I couldn't find the answer. I'm looking at 4052M's (loader, HST) and called the two nearest dealers (different chains). The dealer about 80 miles away, in a major agricultural region, is quoting me at about $3k cheaper (including delivering the tractor) than the more local guys. Their prices undoubtedly are lower because of the economics of the region.

80 miles away: $32k (with tax and delivery)
10 miles: $35,300 (with tax)

I am new to this. What's the game here? Can I let our local dealer know to see if he'll drop the price?

The far away dealer essentially said they need to say our farm is in their county in order to pull this off but they want our business. :confused3:

For comparison, I was quoted about $29,500 for the same tractor.

 

[MF283]

Tax laws change & it has an effect on dealers. I just started with JD in OCT, learning the ropes from nothing, never knew there was so much involved in selling a tractor. We are part of a multi state dealership with 20 stores, there is more buying power that way.
I quoted a complete package the other day with a 20' trailer, had the guy approved with 0 down, knocked the bottom out of the deal.
He told me from the get go that he had an appointment at another brand dealer, they got him for the same price, plus interest on his loan, where we offered 0%. He already had one Deere, i guess he wanted another color to pay more:confused3:

Ronnie

 

[LD1]

First question.....have you even started negotiations yet? Or have you simply inquired about a quote?

They will never give you the best price the first time around, because its expected that everyone is gonna want to haggle. If you dont, good for them they made a nice profit.

So at this point, in the eyes of both dealers, you are just a tire kicker looking for some numbers. When you actually get serious, those prices are likely to go down from both dealers. But you have a good starting point.

I would approach the close dealer. Dont mention anything about the dealer 80miles away. Say something like "thats a little out of my budget, is that the best you can do"? Then see what they come back with. Might be $33.5k or something. Then you can come back with "well I was really hoping to be at 32k" or ' I really dont want to spend more than $32k" etc. See what he says. You may get a better deal locally, and you didnt have to tick off the dealer by throwing a quote in his face from another dealer.

Using that quote from the far away dealer.....thats the last ditch effort. IF he still wont get to a price you are satisfied with, go buy from the other dealer and enjoy the new machine.

 

[plesciad]

Excellent advice everyone. Been on the back-and-forth with these local guys for too long to be coy, am just going to tell them about the other quote. Will report back.

 

[sixdogs]

Cat_Driver has the right answer. I never haggle but wait until circumstance gives me what I want. In your situation I would buy from the ag dealer at $3,000 and have a respectable deal and dealer, assuming he checks out.

 

[ovrszd]

I've got to watch this.


.

Got room for one more?

 

[two_bit_score]

Got room for one more?

Sure :drink:

 

[two_bit_score]

First question.....have you even started negotiations yet? Or have you simply inquired about a quote?

They will never give you the best price the first time around, because its expected that everyone is gonna want to haggle. If you dont, good for them they made a nice profit.

So at this point, in the eyes of both dealers, you are just a tire kicker looking for some numbers. When you actually get serious, those prices are likely to go down from both dealers. But you have a good starting point.

I would approach the close dealer. Dont mention anything about the dealer 80miles away. Say something like "thats a little out of my budget, is that the best you can do"? Then see what they come back with. Might be $33.5k or something. Then you can come back with "well I was really hoping to be at 32k" or ' I really dont want to spend more than $32k" etc. See what he says. You may get a better deal locally, and you didnt have to tick off the dealer by throwing a quote in his face from another dealer.

Using that quote from the far away dealer.....thats the last ditch effort. IF he still wont get to a price you are satisfied with, go buy from the other dealer and enjoy the new machine.

Good suggestions. Don't be overbearing. Catch flies with sugar.


TBS

 

[jenkinsph]

Good suggestions. Don't be overbearing. Catch flies with sugar.


TBS

I agree with not being overbearing and seldom mention competition and do not discuss the competitors quotes. I simply give the dealer a face to face opportunity to make a sale and proof that I am ready to buy if the price is right. If it does not work out there isn't a charge to swap the cashiers check for another one.