New Tractor Sales Are Declining

[rScotty]

The dealer always assumes the buyer has that tactic up their sleeve.
These people aren’t stupid.

No, it doesn't work like that. Nobody is stupid. It is just that there is a difference in the way people who work for themselves look at the world. You seem to know that. Well, it works that way for the rest of us too.
rScotty

 

[rScotty]

I agree. In my experience, small dealers that don't move much product tend to purchase outright while the large dealers moving tons of units will use a flooring plan.

I think that is what is the way I see it as well. There is a point where dealers have to make a decision about expanding or not. Frankly I preferred to stay small enough that I owned my whole business and could make my own policies. But not everyone is going to feel that way. It's just a personal preference.
rScotty

 

[Hay Dude]

No, it doesn't work like that. Nobody is stupid. It is just that there is a difference in the way people who work for themselves look at the world. You seem to know that. Well, it works that way for the rest of us too.
rScotty

You have a lot more faith in humanity than I do.
I have been around for a long time and stupidity is apparent just about everywhere.
In fact, it was just released that IQ levels are falling now in the USA.

 

[5030]

You have a lot more faith in humanity than I do.
I have been around for a long time and stupidity is apparent just about everywhere.
In fact, it was just released that IQ levels are falling now in the USA.

Probably from smoking too much dope..........

 

[rScotty]

You have a lot more faith in humanity than I do.
I have been around for a long time and stupidity is apparent just about everywhere.
In fact, it was just released that IQ levels are falling now in the USA.

Don't know about the IQ part. I feel smarter now than last year but how would I know for sure?

Yes, my "faith in humanity" bias as been noted before by several TBNers.
All I can say is it's as valid as pessimism; just less common.
rScotty

 

[Sid Post]

These manufacturers aren’t stupid enough to give you the lowest price and finance you for free for 5 years. Anyone who thinks so is fooling themselves.
I credit the manufacturers for playing games with people like that. It makes them feel smart, like they took advantage of the manufacturer.

Any business has to make a profit to stay in business. You may see them temporarily move things at a loss to move dead stock or solve temporary cash shortages but, these are fleeting and generally rare because they are so harmful to the company's financial health.

We all know good brands that took these shortcuts to move products and then either DID NOT have the resources to invest for the future or, simply burned customers by devaluing products previously purchased.

 

[MossRoad]

Regardless, you take the loan or pay cash. But there is no significant cost reduction for cash.

Many years ago I was selling a used car for $1000 firm as advertised. A guy came to look at it and said "I'll give you $900 cash right now!"

I said "Cash as opposed to what?" He just looked at me. Awkward pause.

I told him I really need to get $1000 and can't take anything less. He said OK and gave me $1000.... cash.

 

[Sid Post]

There probably are narrow number of situations where a dealer wants to move something and the customer gets close to invoice and 0% financing, but for the vast # of typical buyers, 0% interest means paying more invoice. OR you pay higher interest and get a lower price.


Next people will be saying the paid invoice, got 0% for 5 years and got retail trade in money for their trade-in.

Come on fellas, these aren’t multi-billion dollar corporations because they are philanthropists to their customers.

I was part of this CIRCUS with General Motors working for a GM subsidiary. I could get a new Chevy pickup at "COST"!

Problem was, I could buy a new Chevy or Ford at retail for less money equipped the same!

 

[5030]

No businessman will remain in business very long if they aren't making a profit. Just common sense.

 

[jyoutz]

And likewise, there is no 0% interest AND significant reduction in price.

No, but all Kubota dealers have the same corporate financing deal. I shopped different dealers and found significant price differences between them. I bought at the lowest priced dealer within reasonable distance, then took the corporate financing. I found as much as $4000 difference between dealers for the same machine.