Assembly and Destination Charge?

[Brokermike]

So I've been negotiating a price on a new 50hp tractor. Thought we had everything squared away and then the salesman informs me that there is $500 assembly charge and $350 destination charge that applies, and that these are charges from the manufacturer (e.g. non-negotiable).

It's been a while since I bought a new tractor. Is this the norm now?

FWIW even with the additional fee I think I've managed a fair price, it isn't neccessarily a deal breaker it just struck me as really odd and a touch unprofessional that it wasn't mentioned in the their sale flyer advertising their huge sale.

 

[mddorange]

I have never heard of that. Sure didn't have to when I bought mine.
Is there another dealer in the area?

 

[murphy1244]

What brand was it?

 

[kco]

I checked my notes and quotes from shopping in 2011. I had two or three quotes each from Bobcat, Kubota and Kioti. The original Kioti quote had a $1,000 add-on item for "Assembly, battery, shipping and PDI". The Kubota quotes just had the total price and Kioti quotes after the first one still showed a line for "Assembly, battery, shipping and PDI" but the cost was $00.00. If you initially were just verbally discussing figures it may be an honest omission. But once down to a written quote I think they should include everything.

When I bought my truck in 2003 we haggled for a while over trade-in, options, etc. It got confusing so I told the salesman I wanted to see a final price with everything, including taxes, in. We agreed to that. Then they had an accounting person join to draw up the final papers. All went well until he added the British Columbia environmental fee (which is a tax for some hazardous or hard to dispose of things like tires, batteries, etc). It was not a lot, but I said I would not pay it. I had stipulated and received a price with ALL taxes in. The accountant continued to argue. However, a guy from the next office (turns out he was the dealership owner) poked his head in and called the accountant to see him. The accountant came back and said the quoted price was fine.

I think missing the environmental tax may have been a mistake on the salesman's part but I had been very clear on wanting the final, bottom-line price. The dealer did the right thing.

Looking at my old Kioti quote(which I bought 8 years after the truck) I see an "Environmental tire levy" at $00.00. This is because we eventually dealt on an "all-in" price and he adjusted his invoice to reflect that.

I suppose you need to decide whether or not the salesman was misleading you. I have always seen items like "dealer preparation", PDI (whatever that means), shipping, etc., on the few vehicles and one tractor I've bought new. That's why I always ask for a final "all-in" price. It is particularly important when comparing different brands.

If the salesman wasn't being misleading and you're happy I wouldn't worry about it. But you could use it as something more to bargain on.

 

[Will_C]

I always had for a total price... I don't care what or how the dealer charges, I just care about the bottom line. I almost walked away from an ATV purchase when the dealer tried to charge notary and document fees after we agreed on a price- they decided they could live without it as I got to the front door!

Will

 

[davrow]

Hmm, I'd say it is totally optional for a dealer to specify one or roll it into the quoted price (which seems by far the more common practice). But it HAS to be done up front, not at payment time. What they are doing to you is wrong.

That is also an exorbitant amount for both fees in my opinion.

 

[Billrog]

I agree with davrow the quoted price should be the end price. I was quoted a price for a new Kioti 4 mons. ago and dropped in yesterday to buy it . engine heater, remote H outlet,work light and batter, $190.00 shipping and assembly $700.00 were on the bill over and above the quote but were NOT added to the original quote on the bill.

 

[kco]

I agree with davrow the quoted price should be the end price. I was quoted a price for a new Kioti 4 mons. ago and dropped in yesterday to buy it . engine heater, remote H outlet,work light and batter, $190.00 shipping and assembly $700.00 were on the bill over and above the quote but were NOT added to the original quote on the bill.

I think your experience was similar to mine(not surprising since we have the same dealer). That is, the price paid was the same as the original quote, which included ALL negotiated items. It usually won't matter if they show the add-ons separately on the bill as long as what you pay matches the original agreed price. I say "usually" because people buying for a business may like different breakdowns for tax allocations.

For initial verbal "ballpark" inquiries I can see where dealers may just quote the tractor without preparation and environmental charges. Competitors likely do the same. But when it gets to serious negotiating and final prices the dealer and buyer should always work on the total end price with all charges in. That's what should be shown on the dealer's written quote to the buyer.

 

[bcp]

I've seen several new cars with something like

ADP $2000

added to the list of charges.

"Additional Dealer Profit"

Bruce

 

[2458n]

Bruce I knew what my reply was going to be. I read your response and we were on the same page. The ADP is 100 percent correct. My sister was moving cars in the showroom where she works. She said she had to do it herself because they had a 440,000.00 Lexus in there.