Dealers Not Accepting Some Brands on Trade

[Thereisagod]

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!

Today it's "don't let them know you're paying cash." Usu the first question they ask is, ''will you be paying cash or financing?" As soon as you say "cash" miraculous extea costs appear on the invoice.

 

[Bill the Elder]

Told my sweetheart I was thinking about buying a Bad Girl, didn't go over well.

 

[2manyrocks]

Only available to rent

 

[Bob in RVA]

I remember when Minneapolis-Moline and Case were the most popular tractors in the thumb of Michigan,

 

[BLue backhoe]

When you want to sell orange and you put something else on your lot that is quality for a better price. It doesn’t look good on your business..

My local new Holland dealer wasn’t very happy that I was able to buy the exact same thing as his boomer series for cheaper money when I bought my LS. At the time. LS was making all the boomers. It was exact same tractor with a different logo.

I think the slowing down economy, and trying to protect their brand, are the motivating factors.

 

[arrow]

Tractor data says the Mahindra 2538 is built by TYM.

Another issue that seems to be going on is finding tractor mechanics to keep tractors running. I have a suspicion that one of the reasons for not wanting trade ins is the dealerships don't have the mechanics to figure out what is wrong and to make repairs on a cost effective basis on other brands. So they just don't want other brands that their mechanics aren't familiar with.

That's part of it and a rather large part.
Another large aspect however is if the trade needs parts.
It is the predominant reason and has little to do with "what brand sells".
The dealer has to back up what he sells unless there is a "sold as is " clause.
I once had a John Deere to trade (JD 750 in literal show room condition and 1600 hrs )and went to a John Deere dealer.
He showed me $1500 and said, "parts are getting tough for these so I can't offer you more".

 

[NoTrespassing]

The mark up margins of yesteryear no longer exist today with autos, tractors or refrigerators. They have been reduced because of increases in costs for manufacturers. I mean the Burger King kid is now making $17 an hr. Margins are getting tighter and tighter.
The manufacturers say to the dealers: "if you want more money, you're gonna have to sell more stuff". Add to that what's happened to borrowing rates, insurance increases, wage increases, the lack of workers and the general malaise and distrust our entire culture seems to be living with these days, makes for one big, lousy soup.

It has become vicious out there with the dealerships on the low end of the totem pole and the sales people lower than a rattle snake's belly in a wagon wheel rut.

I was discussing margins for car dealerships with a person the other day. My opinion was that dealerships are making more servicing the cars they sell than they are making on the sale itself. Is this true?

 

[BigBlue1]

If I was looking at doing business with a dealer and saw them post an ad like the original post making a sarcastic/snide name change like 'Bad Girl' they could f right off. Having an attitude like that in common business dealing shows me I'd want nothing to do with them. Lack of professionalism.

 

[arrow]

I was discussing margins for car dealerships with a person the other day. My opinion was that dealerships are making more servicing the cars they sell than they are making on the sale itself. Is this true?

Depends.
New cars that used to have a 3-4K margin, now have about a $1300 one showing on the invoice..and this for a 34K auto.
Most sales people get around a hundred bucks per car they sell now where they used to get 15-20% above invoice profit. There was room then to do that. Not anymore.
The owner of the dealership gets more with the unspoken and sacrosanct money going directly in his pocket from the manufacturer.
I used to know what that was but I do not anymore in todays world.
So, if that new car now has 35,000 miles on it and needs brakes, that could very well be $650 per axle.
The dealer pays insurances, salaries, benefits, along with utilities, taxes and the nut on his floor plan and or building.
It is why we now pay $140-$180 per hr in labor costs.
It has gotten so that if as a dealership owner, and you have only the one brand or dealership, you are most likely losing money.
It has now become critical that a dealership becomes a consortium owning 10 to 20 properties and brands to cover the market gamut of choices.
It's like betting on every horse in a race to cover the customer spread of choice..

 

[arrow]

If I was looking at doing business with a dealer and saw them post an ad like the original post making a sarcastic/snide name change like 'Bad Girl' they could f right off. Having an attitude like that in common business dealing shows me I'd want nothing to do with them. Lack of professionalism.

Guaranteed that was from a 25 old something spoiled brat in management who thought that a perfectly alright thing to say because all of his friends are spoiled brats and entitled as well and a phrase like that swims within that group.
I dealt with "wiz kids" like this in my 20 yr car/truck sales experience.
No class at all.
They used to say "sticker is quicker" back then.
Yeah, ok.