Dealers Not Accepting Some Brands on Trade

   / Dealers Not Accepting Some Brands on Trade #21  
Speaking as a Suzuki owner, Suzuki actually made some pretty decent small cars from a mechanical reliability viewpoint, but then pulled out of the US car market (2012?) such that obtaining parts isn't so easy.
 
   / Dealers Not Accepting Some Brands on Trade #22  
I’ve been noticing that some tractor dealers won’t accept TYM, LS, Branson, Bad Boy, or Mahindra tractors on trade. That may make it more difficult to sell/trade your tractor if you own one of those brands. Are these dealers being uppity about their brand or do you think they have legit business reasons for doing so? I’ve never seen a car dealer not accept another brand before so why do tractor dealers do it?

A dealer taking on a trade of a piece of equipment runs the risk of not making the amount of money they want to make in the time frame they want to make it. The dealers have a harder time judging demand on a lesser-known piece of equipment compared to one of the well-known brands since fewer of them are being bought and sold and thus that affects their ability to determine how much they should pay for it, how much they should expect to sell it for, and how long their money will be tied up in it. Also there is much more of an unknown for the dealer with regards to the cost and ability to fix any potential issues they may discover the unit has. The potential costs of those unknowns may outweigh the opportunity to make money in some dealers' eyes but not in others. There are both ends of the spectrum locally. The local Kubota dealer only deals with used equipment when it's an "oops I bought the wrong machine from you two weeks ago and want to trade it for another one" situation. The local New Holland dealer will take almost anything, including some things that are for parts only.

The current major brands are Deere, all of the stuff CNH sells or their former companies have ever sold, and Kubota. Massey-Ferguson, Yanmar, and LS are sort-of-second-tier brands around here. Massey-Ferguson's big issue is that the brand declined to a fraction of what they once were and dealer support is skimpy. Yanmar is known to have made Deere's compacts for them in the past and is known to still make Deere's compacts' engines but has sold few tractors under its own badging here in the U.S. and the dealer network is not very robust. LS has a better dealer network around here than Massey-Ferguson and Yanmar and at least the CNH dealers know they make CNH's compacts, but the brand itself is new and that relegates them to second tier. Deutz would be similar, quite a few farmers had a friend of a friend who had an old air-cooled one but they were never all that popular. Mahindra is a "maybe second tier" as they are popular globally and have a little presence here but less so than the other ones mentioned. The no-longer-made major brands like Oliver/White, Allis-Chalmers, and Minneapolis-Moline are basically treated like a used tractor of the same vintage from a current major brand. Everything else is considered a third-tier no-name budget machine. Some dealers do take consigned items, and letting you consign it with them is about all that they'd have to do with those third-tier units.
 
   / Dealers Not Accepting Some Brands on Trade #23  
A dealer taking on a trade of a piece of equipment runs the risk of not making the amount of money they want to make in the time frame they want to make it. The dealers have a harder time judging demand on a lesser-known piece of equipment compared to one of the well-known brands since fewer of them are being bought and sold and thus that affects their ability to determine how much they should pay for it, how much they should expect to sell it for, and how long their money will be tied up in it. Also there is much more of an unknown for the dealer with regards to the cost and ability to fix any potential issues they may discover the unit has. The potential costs of those unknowns may outweigh the opportunity to make money in some dealers' eyes but not in others. There are both ends of the spectrum locally. The local Kubota dealer only deals with used equipment when it's an "oops I bought the wrong machine from you two weeks ago and want to trade it for another one" situation. The local New Holland dealer will take almost anything, including some things that are for parts only.

The current major brands are Deere, all of the stuff CNH sells or their former companies have ever sold, and Kubota. Massey-Ferguson, Yanmar, and LS are sort-of-second-tier brands around here. Massey-Ferguson's big issue is that the brand declined to a fraction of what they once were and dealer support is skimpy. Yanmar is known to have made Deere's compacts for them in the past and is known to still make Deere's compacts' engines but has sold few tractors under its own badging here in the U.S. and the dealer network is not very robust. LS has a better dealer network around here than Massey-Ferguson and Yanmar and at least the CNH dealers know they make CNH's compacts, but the brand itself is new and that relegates them to second tier. Deutz would be similar, quite a few farmers had a friend of a friend who had an old air-cooled one but they were never all that popular. Mahindra is a "maybe second tier" as they are popular globally and have a little presence here but less so than the other ones mentioned. The no-longer-made major brands like Oliver/White, Allis-Chalmers, and Minneapolis-Moline are basically treated like a used tractor of the same vintage from a current major brand. Everything else is considered a third-tier no-name budget machine. Some dealers do take consigned items, and letting you consign it with them is about all that they'd have to do with those third-tier units.
around here Mahindra has more presence than LS, Koti, Bad boy, TYM, Branson. not on par with JD or Kubota, but closing in on NH and Massy. at the end of the day i plan to be buried by my Mahindra digging the hole so i do not care, the tractor was an investment in my happiness and has payed many dividends already.

Dealers that are not taking these tractors in trade are most likely cutting their own throats just like the auto industry did in the late 70s.

even if the mahindra brings 30% less in resale (not what is happening around here) I still come out ahead because the tractor was 30% less upfront for the same capabilities covered in green or orange paint.

parts have been cheaper also (not that i have bought that many parts).
 
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   / Dealers Not Accepting Some Brands on Trade #26  
I never, ever trade in. I always sell it myself and then deal on the replacement. Years ago I was dealing on a car and when I mentioned maybe a trade in, the price went up. Learned my lesson. I don't mind them making money, just don't take ALL of mine!
 
   / Dealers Not Accepting Some Brands on Trade #27  
I can easily see any dealer's hesitation in taking any of those on trade and not offering top dollar. The are in business to make a profit and nit sit on something they would have a hard time getting rid of and at auction they would take an even bigger hit. My dealer (Kubota and IH) would do the same thing. Of course he does collet old Kubota's and Internationals as a hobby and would sell me one for the right price but I don't want any. I like looking at them because he restores them as well, plus he has a nice shop with dedicated employees who do the work and knowing him like I do, I'm sure he compensates them well.
 
   / Dealers Not Accepting Some Brands on Trade #28  
I’ve never seen a car dealer not accept another brand before so why do tractor dealers do it?

I can tell you the view from an auto dealer.

We are not allowed to take Ford 6.0 or Ford 6.4 trucks on trade in. Here is what happens:

1) A guy wants to trade his Ford 6.0 and we're not allowed to keep those on our lot (not starting a brand war, but if you know, you know.)
2) So we have to look at auction results on similar 6.0s. And offer 20% less than those auction results to cover our time and our risk.
3) When we go back to the customer and offer him 20% less than auction results, he gets mad and storms out. So we lost the sale and a potential customer is mad.

Much easier to just say we can't take those in on trade.
 
   / Dealers Not Accepting Some Brands on Trade #29  
I can tell you the view from an auto dealer.

We are not allowed to take Ford 6.0 or Ford 6.4 trucks on trade in. Here is what happens:

1) A guy wants to trade his Ford 6.0 and we're not allowed to keep those on our lot (not starting a brand war, but if you know, you know.)
2) So we have to look at auction results on similar 6.0s. And offer 20% less than those auction results to cover our time and our risk.
3) When we go back to the customer and offer him 20% less than auction results, he gets mad and storms out. So we lost the sale and a potential customer is mad.

Much easier to just say we can't take those in on trade.
Good point! I don't know why some people think dealers are obligated to take a questionable unknown product off of someone's hands just because they no longer want it. I have worked at dealers and have seen the junk people want to pawn off on them. :eek:
 
   / Dealers Not Accepting Some Brands on Trade #30  
CAUTION: Rant ahead

Here's the other problem with taking in trades from a dealer perspective:

@Tractorable finds a Massey 285EH that he likes. Dealer A gives him the price of $ 46,000 and offers @Tractorable $8000 for his Mahindra.

Dealer B has a Massey that is similar, but optioned a bit differently and hours are a bit different. He tells @Tractorable that "The other dealer is insulting you with a $8000 trade. We will offer you $10,000 because you are smart enough to know what you have." Dealer B offers their different, but similar tractor for $48,000 and a $10,000 trade.

If dealer B gets the sale, he benefits from manipulating the numbers and dealer A loses out. So dealer A begins to play the game next time so as not to lose the sale.

The best defense against such games? Keep your trade completely off the table until you finalize the price on the new tractor. Only after that, go ahead and ask about your trade.
 
 
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